Expenses and benefits: entertainment

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Overview

As an employer covering the costs of your employees providing entertainment for clients, you have certain tax, National Insurance and reporting obligations.

What’s included

Entertainment can involve eating, drinking and other hospitality.

Types of entertainment include:

  • ‘business entertainment’ of clients - for example, discussing a particular business project or forming or maintaining a business connection
  • ‘non-business entertainment’ of clients - for example, entertaining a business acquaintance for social reasons