That's Entertainment

ROBBIE WILLIAMS'S SONG Let me entertain you could be sung by thousands of businesses across the United Kingdom as they indulge in the difficult game of rewarding customers and employees for past loyalties and successes.

There is no doubt about it corporate entertaining is big business. And for those businesses that cannot afford to treat their staff to an expensive day out at the races it is very common to impart them with gifts or other perks to keep them sweet.

In this article I will consider the VAT issues of business entertainment and staff perks and as anyone who has had the courage to ask how much a corporate box at Arsenal costs we are talking big money in many cases.

Basic rules

The basic rule as far as VAT is concerned is that input tax cannot be reclaimed on any business entertainment...