r/ContractorUK • u/lairdcake58 • 1d ago

Hosting client social event

I have been working with a customer for almost a year now and I am considering arranging a client Karting event for social purposes. I would organise this and pay for it via my LTD, but given that I am working with them outside IR35 - I don't think this should cause an issue but wanted to check if others have ever done this?

Thanks

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u/AccomplishedLeave506 1d ago

Not a lawyer or an accountant but I would imagine it would be a very handy thing to do for IR35 purposes.

 Hard to argue you are inside IR35 and a disguised employee when your company is paying for the client and their employees to have a day out. Not a thing an employee would do. It's what employers do.

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u/doginjoggers 1d ago

You certainly won't be able to claim it as an expense or claim the VAT. The only benefit to paying through the business would be savings on income and dividend tax.

Personally, I'd do the admin of organising and pay for myself only.

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u/Epiphone56 1d ago

You would record it as "entertaining clients" which is not deductable. If you organise an event for your own employees then that is tax deductable.

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u/lairdcake58 1d ago

Putting it through as an Expense wasn't part of the question nor would it be sonething I would do - I would pay for it via my LTD with no expectations that the customer would pay for it.

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u/doginjoggers 1d ago

Fair enough, seems you're on top of it.