Advent Day 15 – Travel and Entertaining Costs

Travel and entertaining costs can also be claimed through your business for taking both your clients and your employees out for occasions. Staff entertaining is allowed up to £150 per person per year and includes both directors and employees, this can be used for a summer barbeque or party or put towards your Christmas do!

Client entertaining can also go through the business. It is important to note that although you can claim this through your business as an expense you will not be able to claim any corporation tax relief on the entertaining cost – however, this is still much more tax efficient then if you are paying for this personally after your own personal taxes.

For example to pay for a £100 meal you would typically need to take out £148.14 as a dividend form your company, pay tax at 32.5% being a higher rate tax payer, which would be tax of £48.14 to be left with £100 after tax to pay for the meal.

Digivolve’s Top Tip ‘Retaining the best staff is hard so offering events is a nice perk, we also do team building events / team training sessions which don’t make up part of the £150 limit.

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