Journal :: Get the Taxman to Pay for Your Dinner Dates

Published: January 17, 2005
Author: Graham Dragon
Category: Tax
Permalink: Get the Taxman to Pay for Your Dinner Dates

This is an idea that might appeal to those of you who run your business through a company with just yourself and your partner as employees. Equally, you may have clients who fit that profile.

Do you ever take your partner out for a nice romantic meal at an expensive restaurant? Would you like to be able to do so out of pre-tax company profits rather than out of your taxed salary?

Well, the answer is, you can! Legally.

You can spend up to ?300 a year on dinner dates like this ? either on one really expensive meal, or perhaps spread over two or three more reasonable affairs throughout the year.

The relevant legislation is Section 264 of the Income Tax (Earnings and Pensions) Act 2003. This Section exempts parties from Income Tax if the cost does not exceed ?150 a head, provided all staff (or all staff at a particular location) are entitled to attend. Where you and your partner are all the staff, then a nice romantic t?te-?-t?te at your favourite restaurant qualifies, provided you do not exceed the annual limit of ?150 each. And the provision of such entertainment to staff has long been recognised as a legitimate business expense fully deductible against Corporation Tax.

I am sure you already knew about the ?150 staff party limit. But had you recognised how you might use that to gain this extra tax benefit for yourself?

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About Graham Dragon

Note: We do not accept liability for the content of our e-mail Journal or for the consequences of any actions taken or not taken by yourself or any third party on the basis of the information provided. We are unable to advise you on tax matters. If you wish to obtain further information or help on this or on any other tax matters you should consult with a tax accountant or other suitably qualified and experienced tax professional.

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