hippy, some entertaining is allowed. If clients are present, then it is a business expense.
“Contractors can certainly claim expenses for business-related entertainment,” explains James Abbott, head of tax at contractor accountant Abbott Moore LLP. “However, their limited company won’t be able to claim corporation tax relief for entertainment-related costs.”
“But common sense should prevail; trying to claim for a £14,000 lunch is likely to draw unwelcome attention from HMRC.”
“Contractors can certainly claim expenses for business-related entertainment,” explains James Abbott, head of tax at contractor accountant Abbott Moore LLP. “However, their limited company won’t be able to claim corporation tax relief for entertainment-related costs.”
“But common sense should prevail; trying to claim for a £14,000 lunch is likely to draw unwelcome attention from HMRC.”
http://www.contractorcalculator.co.uk/contractor_claim_expenses_entertainment.aspx