Entertainment and business expenses...

We have all heard about and read reports in the newspapers where bankers have entertained their clients and spent thousands and thousands of pounds on the company credit card on cristal champagne in the process, not to mention the meals at the michelin starred restaurants.

However, what can you actually put through legitimately as a business expense and into your accounting costs? When you take a client out can this go as a business cost, or what if you go out for a meal yourself - how do you show whether it is a business meal or just a personal one and therefore whether it could go through the company or not?

Are there guidelines on what is and is not allowable?

Re : Entertainment and business expenses

I would advise talking to an accountant... it's a very good question of course!

Re : Entertainment and business expenses

Obviously, with entertaining you should make a note on either the invoice or your expense claim for who you have entertained and how it was business related.

Obviously for Corporation Tax purposes, business entertaining is not an allowable unless it is staff entertaining (i.e. a Christmas Party).
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