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.

 

Contact us to discuss subsistence and entertainment costs in your business.

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