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Posted Thu, 04 Jan 2024 18:21:42 GMT by Farid Gulam
Hello Can a company's hotel expenses for customer be allowable expenses for corporation tax and can input VAR be claim if customer is visiting company to discuss on contract renewals? Thanks and I look forward to kind assistance.
Posted Fri, 12 Jan 2024 15:03:50 GMT by HMRC Admin 2

The general rule is that providing accommodation to non-employees is considered business entertainment. Therefore, the expenses incurred are not allowed to be deducted from the company’s profits.

BIM45046 - Specific deductions: entertainment: accommodation provided for non-employees

For VAT purposes this would normally be considered business entertainment and there would be a block on the input tax recovery.

Business entertainment (VAT Notice 700/65)

Thank you.

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