One of the most common questions I get asked is – can you get tax back on your entertaining costs?
The short answer is NO!
However, when it comes to VAT, there are 3 situations where you can claim back VAT.
Firstly, if you entertain your staff (there are limits on this).
Secondly, if you entertain overseas customers.
Thirdly, if you recharge the cost of the entertaining to a client. For example if a company is paid £10,000 to get clients for them and part of this will be entertainment, then in this case you are able to claim back VAT.
In this situations, whilst the entertainment cost may be rolled up in the £10,000, it would be better to separately detail this on the invoice.
