We get asked this question a lot by our clients and the answer unfortunately is NO you can’t claim the VAT on business entertaining as a rule.
However, you can claim the VAT element on entertaining your staff and overseas customers. So, if you had a Christmas party for all staff you could claim the full value of the VAT. If the Christmas party was for staff and their partners then you would have the deduct the VAT proportion of the partners.
If you need advice on which expenses you are allowed to reclaim the VAT on then please just ask by emailing us at firstname.lastname@example.org calling us on 020 3633 1340 or you can contact us via our website www.cainandbeer.com.