As the festival draws near you might be planning a Christmas function for special clients and/or suppliers and business contacts and you may be wondering what expenses you can claim. These expenses will come under the entertainment regime for purposes of tax deductibility.
Any expenditure for food and drink that your business provides off your business premises will be 50% deductible. This extends to any incidental expenditure on things like the hiring of crockery, glassware or utensils, waiting staff, and music or other entertainment provided for the function you’re planning.
If you’re thinking of a more public event to promote the business during the festive season, expenditure on food, drink and all the necessary incidentals could be fully deductible. However, be aware that the event can’t cater for your VIPs alone. It must be open to the public on the same footing as clients or business contacts. Its primary purpose must be as a marketing event for the business.
If you’re planning an event and you’re not sure which tax regime it will fall under, please contact us for information.