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Client Entertainment – Protect your team from taxable benefits

Philip Eagle

Tax Director
11/03/2019

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 hello@hallidays.co.uk

Posted 27th November 2017

Reviewed 12th December 2018

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