My business is a non-VAT registered partnership and teaches business English to clients. When clients attend immersive courses, meals out etc. are part of the experience and the course. Therefore, are the costs of these meals etc allowable as a valid business expense when submitting the tax return?

Arthur Weller replies:
This sounds as though it is a case of 'provision of hospitality for payment'. Look at the end of page www.gov.uk/hmrc-internal-manuals/business-income-manual/bim45030 where it states: 'Similarly, there are instances where a customer purchases a ‘package’ of services which includes an element of entertaining. An example of this is a residential training course that includes meals and social events. Again, all the services provided have been paid for by the customer and there is no element of free hospitality, so the costs incurred by the provider are not disallowed under the legislation.'