We are a new small company which has just ended its first year. We want to clebrate our success with a belated xmas directors dinner.
I know that this is deductable, but can we still now take advantage of this, as it is approaching the end of January?
xmas meal deductions
6 posts • Page 1 of 1
by deanshepherd on Thu Jan 19, 2006 6:58 am
It doesn't have to be a Xmas dinner, it can be any annual event. IMHO you can still celebrate Xmas in January if you wish.
For the cost to be allowable it should be available to all employees and not just directors.
If the directors are the only employees then the Revenue 'may' argue that it is not a business expense. Although I have not had a problem with the Revenue accepting the amounts in the past, they are becoming a little less flexible these days.
No benefit in kind will apply providing the cost is below £150 per head (not just per employee) per annum. You can have more than one annual event each year.
Dean Shepherd
dean.shepherd@mmi-online.co.uk
MMI Accountancy
www.mmi-online.co.uk
For the cost to be allowable it should be available to all employees and not just directors.
If the directors are the only employees then the Revenue 'may' argue that it is not a business expense. Although I have not had a problem with the Revenue accepting the amounts in the past, they are becoming a little less flexible these days.
No benefit in kind will apply providing the cost is below £150 per head (not just per employee) per annum. You can have more than one annual event each year.
Dean Shepherd
dean.shepherd@mmi-online.co.uk
MMI Accountancy
www.mmi-online.co.uk
- deanshepherd
- Posts: 1082
- Joined: Wed Aug 06, 2008 3:23 pm
by hashman on Thu Jan 19, 2006 9:35 am
Dean
Re a close company with only directors :
Are you saying that in the case of a company with say 2 directors they can take themselves out to dinner and claim that the expense is wholly and exclusively for business purposes?
If not 2 what about 4?
Re a close company with only directors :
Are you saying that in the case of a company with say 2 directors they can take themselves out to dinner and claim that the expense is wholly and exclusively for business purposes?
If not 2 what about 4?
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- Joined: Wed Aug 06, 2008 3:31 pm
by deanshepherd on Thu Jan 19, 2006 10:05 am
Hashman,
This is something that I have been advised to do for many years by various CPD providers, as part of small company tax minimisation strategy.
Provided you follow all the normal rules: Must be an annual event, must be available to all.. then it has not been a problem.
More recently, however, tax inspectors have a tendency to be less flexible and may argue against such a deduction as being allowable.
Unfortunately these things tend to depend on your negotiation skills and what side of the bed the inspector got out of on that particular day!
Dean Shepherd
dean.shepherd@mmi-online.co.uk
MMI Accountancy
www.mmi-online.co.uk
This is something that I have been advised to do for many years by various CPD providers, as part of small company tax minimisation strategy.
Provided you follow all the normal rules: Must be an annual event, must be available to all.. then it has not been a problem.
More recently, however, tax inspectors have a tendency to be less flexible and may argue against such a deduction as being allowable.
Unfortunately these things tend to depend on your negotiation skills and what side of the bed the inspector got out of on that particular day!
Dean Shepherd
dean.shepherd@mmi-online.co.uk
MMI Accountancy
www.mmi-online.co.uk
- deanshepherd
- Posts: 1082
- Joined: Wed Aug 06, 2008 3:23 pm
by deanshepherd on Thu Jan 19, 2006 10:06 am
In answer to your final point, I see no difference in the treatment of 2, 4, 3 or however many directors.
- deanshepherd
- Posts: 1082
- Joined: Wed Aug 06, 2008 3:23 pm
6 posts • Page 1 of 1
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