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HMRC guidance on employee entertainment states “employee entertainment……..is considered to be for business purposes and so you can claim back the VAT…….however you cannot claim back the VAT in either of these circumstances: When non-employees are included in the event (this is business entertainment, not employee entertainment)”.
We often have circumstances whereby an employee will travel to interview candidates.
My question is, can we claim back the VAT on the employee portion as it’s subsistance, and not claim for the interviewee as they’re not an employee, OR, can we not claim back any VAT at all as the interview is classed as business entertainment?
Many thanks!
Hi Michelle
Yes, I’d agree that the employee portion is recoverable as their expenditure would be regarded as subsistence. The interviewee is regarded as a third party so any VAT on that part of the cost can’t be claimed.
Marie
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