Anyone with their own ltd company

When you have a internal meeting perhaps to decide how much dividend you are going to pay youself, and you decide that this meeting should happen over a meal in the evening so as not to disrupt the working day how do you account for the cost of the meal in the books.

Is it an allowable business expense.

or do the people at the meeting have to pay tax as a benefit in kind when the total exceeds the £150 per year limit on internal entertaining?

 

Entertaining is fully disallowable

The &pound;150 relates to staff functions.</p>

Allowablity of the meal. Who attends and where ?and is it 'wholly, exclusively and necessarily for the nature of the trade'</p>

</p>

 

I've had loads of curries while having evening board meetings

And I totally agree. Some of them should be disallowed!

 

there you go again obsesed with curry

going with wife and daughter to Balti House next week, will be having a mixed grill tho

 

obsesed??, that just dont look right nt nt

 

Good on yer!!!

Tandoori mixed grill - good choice! Enjoy!

 

how come the name change????

its good cos I could never spell the other one S)

ps Ian is easier

 

Was coming under pressure from various people

Including, but not limited to, my missus, various friends in Germany, one or two people on here, my accountant and my ex-missus.

Anyway it was getting more and more difficult to live up to my old name at my age. And I ain't going anywhere near those blue pills

 

Dave - you're talking that foreign language that my accountant talks

I just want someone to talk to me in English - plain and simple like.

Can I put one slap up meal with the missus through the books of the company on the premise the "the board of directors" (me and the missus) met over dinner to decide that yes we were both allowed to take a small amount of money out of the companies profits.

Or am I just as well off paying it out of my own pocket.

 

RE: Dave - you're talking that foreign language that my accountant talks

Wholly.... don't think so as you eat to live not to have the meeting</p>

Exclusively... probably discuss more than work so again probably no </p>

Necessaily... no you could hold the meeting at your office</p>

I think the answer would be no</p>

Now if you were to consider having a staff function for all the employees then you may be able to pay up to &pound;150 inc vat for each guest.... see what your accountant thinks.</p>

 

RE: Dave - you're talking that foreign language that my accountant talks

You can take a 'customer' for a meal and claim the cost as a company expense. It is a necessary part of product or service promotion, be sure to get a bill.

If you pay for a meal and this is interpreted as 'payment in kind' (to you and your missus) then your accountant will not allow the expense. But the two are difficult to separate, after all there are no 'names' on the bill.

 

RE: Dave - you're talking that foreign language that my accountant talks

So when my previous company provide lunch / biscuits for our internal meetings how would they have accounted for them?

not to mention the massive amounts of booze put on for "team building" events.

I never paid benefits in kind.

I didn't need the biscuits - I'm 20 stone.

I didn't really talk about work.


I understand the logic behind what you are saying - I just can't make the connection between the fact that I've often had stuff at my previous companies expense and I've never paid any benefit in kind and I've never entertained a client - and they've certainly spent more than £150 a year on my bar bill!

Like I say - my accountant is talking the law as you state it but my previous experience as an employee doesn't match with what they are telling me - so I can't work out why the accountant is now telling me that as I am an employee of my own company different rules apply!!!.

 

If it is work orientated...

then it should not be a benefit in kind (is probable it should be declared on a p11d but the same amount be claimed back through your tax return) unless the company has written confirmation from the revenue, or a dispensation... however it is unlikely to be allowable for corporation tax purposes.