Subsistence v Entertainment

by | Sep 10, 2014

Subsistence is a payment for an individual in relation to work-related travel, accommodation and meals beyond those normally required.

Entertainment is when someone in business provides a meal or social event to a customer, potential customer or other person such as a professional contact. Examples of entertainment include meals, hotel accommodation, theatre and concert tickets, sporting events, night clubs, certain business gifts.

Tax issues relate to whether:

a)      the employer may claim relief from taxable profits

b)      the employee must pay tax on any benefit

c)       whether the company may claim back the VAT incurred.


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