Question:
What is HMRC's definition of ‘business entertaining’? If I took my dad out for a pint or two and discussed my business, would that count as business entertaining expenses?
Arthur Weller replies:
As a rule, business entertaining is not allowable, but staff entertaining is allowable. See http://hmrc.gov.uk/manuals/bimmanual/BIM45033.htm. HMRC state there that, "In practice, the definition of 'employees' is extended to include retired members of staff and the partners of existing and past employees." The sting in the tail is that although the expenditure is allowable, P11D employees may be subject to a benefit in kind charge.
