Team members often entertain clients for business purposes e.g. a working lunch. However, if detailed records are not maintained this could be considered as a taxable benefit for your team member.
The purpose of the ‘client entertainment’ should be to discuss business, maintain connections or make new business connections.
If the entertainment is being provided as a reward to a team member it is taxable on them.
Keeping records of client entertainment
It is important to keep sufficient supporting evidence of your client entertainment expenditure. We suggest this includes:
- The name of the employee/s undertaking the entertaining and names of the clients
- The date of expenditure
- The reason for the expenditure (e.g. business lunch, developing new relationship)
- The nature of the entertainment
- The receipt/s that relates to the expenditure
How Hallidays can help
If you need any further support regarding client entertainment or any other tax issues our specialist experts are here to help you. Please contact the team on 0161 476 8276 or email firstname.lastname@example.org
Posted 27th November 2017
Reviewed 12th December 2018
The information contained herein is of a general nature and is not intended to be received as formal professional advice. Whilst we endeavour to provide accurate information, there can be no guarantee that the information is accurate as of the date it is received, or that it will continue to be accurate in the future, due to legislative changes. It is therefore important that before you act upon any information contained herein you seek appropriate professional advice to take account of your exact circumstances.