Corporate Entertaining and VAT Recovery

If gifts to individuals do not total more than £50 in a 12 month period then the VAT can be reclaimed on the expenses incurred. 

However, there is an exception to this which is that VAT cannot be reclaimed on items that are classed as alcohol tobacco and food. Therefore it is unlikely that you will be able to reclaim the VAT on the hampers.

With regard to the costs relating to to the hire of the corporate box at the football match, you are not able to reclaim any input VAT as the costs will be considered to be entertaining which is specifically blocked.  If you have employees there as guests rather than hosts then you will be able to reclaim their proportion of the VAT.

Date published 5 Dec 2012

This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.