Dear Sirs,
I have a client whose directors have several networking commitments, which may be anything from simple meetings to quite lavish affairs, involving meals, booked tables, and the like.
These are hosted events within their professional sphere, and it is unusual to take clients, so I do not think it could count as client entertaining.
But nor would these directors consider themselves to have been entertained even if there were food, drink and, dare I say, entertainment. Staff entertainment would generally be a Christmas party or a day at the races, where the focus of the event or expenditure is on the business' employees. Here, the directors' focus is on raising the profile of their business, and making contacts within the profession and potential referrers of work. In other words, they would not consider themselves to have been entertained as a benefit in kind, but simply to be working after hours.
To me, it looks like networking but my feeling is that HM Inspector would want to disallow the expenditure.
I would be grateful for other people's thoughts.
H
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