| Expense Type | VAT claim | Corporation Tax deduction | Income Yax Benefit in Kind charge | Conclusion |
| Business entertainment – even a cup of coffee to a customer will be treated as business entertainment [3.5 Putting it through] | No1 | No1 | N/A | Pay via company, post in separate nominal head and disallow during CT600 |
| Staff entertainment – current employees only, past or future employees or spouse make it business entertainment. | Yes | Yes | Chargeable except when covered by Trivial or Social function exemption rules | Pay via company, if covered by Bik exemption rules.2 |
| Personal entertainment | No | No | N/A | Avoid but if paid put is through Director Loan account |
| Subsistence – director and or employees, working away from main base. Genuine not business or staff entertainment. | Yes | Yes | N/A | Pay via company but see link |
- Business entertainment is beneficial to put through the company instead of paying from dividends. See example Simon on Putting it through pg 74.
2. Business entertainment is cheaper (taxwise) than staff entertainment where Bik implications see See example Marcus on Putting it through pg 78.
Source:
- Putting it through from Tax Cafe
