Entertainment Expenses Advice
Although client entertainment is not a deductible expense, the costs of entertaining employees are.
Generally speaking, as long as the total cost (food, drink, transport, accommodation etc.) for each employee in any tax year is less than £150 (including VAT), there will be no tax implications for the employees.
As always, it is important that these costs can be backed up by valid receipts – a blanket spend of £150 on each employee is not allowable.
So, whether you are planning a staff Xmas party or Spring break, make sure you use the above allowances to reduce your corporation tax liability at year end.