Understanding VAT Reclaim on Business and Staff Entertainment Expenses: A Comprehensive Guide

• VAT rules on entertainment and staff expenses can be confusing
• Some costs are fully reclaimable, others not at all, and sometimes only a proportion can be recovered
• Business entertainment includes client meals, tickets to events, and corporate hospitality
• VAT on business entertainment for non-employees is not reclaimable
• Staff entertainment for employees only allows full VAT reclamation
• Directors, partners, or sole proprietors do not qualify for VAT reclamation
• Mixed entertainment requires apportioning VAT between staff and non-staff
• VAT can be reclaimed on business travel, meals during work trips, and hotel accommodation for business purposes
• VAT cannot be reclaimed on commuting, private purchases, or personal benefit items
• Keep valid VAT invoices and separate client entertainment costs from staff costs
• Regularly review expense policies to ensure VAT compliance
• Proper invoicing and record-keeping facilitate VAT recovery
• Mistakes in VAT claims can lead to unexpected HMRC bills

Source: deeksvat.co.uk

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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