I have a question regarding entertainment expenses. I'm just trying to clarify things and I notice that some companies have a nominal code for Entertainmnet 100% business and Entertainment non business.
My understanding is that unless a staff member is being entertained, entertainment of any clients for any reason is unclaimable for VAT and tax. So why would there
A. Be a need to have a seperate code for Business and non business entertainment
B. Not be posted to drawings..
I read that it is better to put an entertainment expense through the business, so you then dont have to pay tax on it, so does that mean entertainment is a business expence?
Many thanks for your help!