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Yeah, so you can claim the VAT, but only if the expense is not "sole purpose of the business entertainment is to entertain a non-employee". That is to say, if you take clients out you can claim.

Anyway, I was not referring to reclaiming VAT, but as to whether or not the expense is allowed to be included as a business cost before the payment of corporation tax. That is, it is an allowable cost.

The last bit contractors can do as well. It's the claiming it off VAT or whatever where I'm pretty sure it's not possible to do.