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Business Entertainment & Claiming Back VAT

  • Member PM.Dip
  • Practice Licence
  • 28 posts
  • # 117834

One of my client's recently bought some Club Wembley tickets totalling £6,000.  He tells me they will be used for prizes for staff & corporate hospitality. Obviously this amount includes £1,000 worth of vat which he is keen to claim back if possible.

Looking at HMRC's website on this subject it looks quite complicated but basically my understanding of it is that you can't claim the vat back if the tickets are being used to entertain business clients but you can if you are entertaining staff.  Please could someone explain the best course of action to take in this situation?

  • Fellow PM.Dip
  • Practice Licence
  • 225 posts
  • # 117838

CatherineB said:

One of my client's recently bought some Club Wembley tickets totalling £6,000.  He tells me they will be used for prizes for staff & corporate hospitality. Obviously this amount includes £1,000 worth of vat which he is keen to claim back if possible.

Looking at HMRC's website on this subject it looks quite complicated but basically my understanding of it is that you can't claim the vat back if the tickets are being used to entertain business clients but you can if you are entertaining staff.  Please could someone explain the best course of action to take in this situation?”

 The issue is working out in advance what portion is customer/staff, as presumably the client is paying up front. So I would ask the client what portion will be exactly cilent/staff. I suspect they will not know, your answer to that then should be in that case you can't claim any VAT unless you know exact portion.

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