The myth about Client Entertaining…
“If I take a client out for dinner or a few drinks, I can put it through the business and claim the VAT back.”
The truth:
🚫 Nope! HMRC says client entertaining is not tax-deductible.
🚫 You can’t claim the VAT back either.
Why?
Because schmoozing clients over a bottle of Merlot is classed as a perk, not a business expense.
Harsh, I know!
👉🏼 But here’s the smart bit:
It’s still better to pay it through your business than out of your own pocket. Why? Because pulling money out personally (dividends, salary) just to cover it could mean more tax for you.
So:
✅ Put it through your business for transparency
✅ Know it won’t save you tax
✅ Save the claims for staff parties, team lunches, or meals when you’re travelling for work.
So if you want to treat clients, that’s fab – but it’s on you, not HMRC 😉