Some entertainment expenses are 100% deductible.
Do you know which types of expenses fall into this category?
If you or one of your employees are travelling on business, you are entitled to claim 100% of the cost of meal.
At a glance, this seems to be at odds with the rule that states that food and drink provided away from your business premises is only 50% deductible.
You also need to consider if the purpose of the trip is mainly for enjoying entertainment. If this is the case, the cost of the meal becomes a supporting expense and is only 50% deductible.
The 50% rule also applies if there are existing or potential clients as guests at the meal or function, and if the meal is a celebration, party, or similar occasion while travelling.
Another specific rule states that Food and Drink you provide at a conference, education course or similar is 100% deductible, if the event lasts more than 4 consecutive hours (not including meal breaks)
The above highlights the need to check carefully and make sure you have a good understanding of the rules when there is a mix circumstances which may give rise to different rates.