Corporate Entertainment / Business Meetings, what does revenue say

[deargas]

I've an IT business, and I regularly meet potential clients for lunch / dinner etc. I generally pick up the tab as a good will gesture in my attempt to continue doing business with them.

Q1: What I want to know is what Revenue would categorise this as? Is this a valid business expense - would I still be liable for corporation tax on the amount involved.

Q2: Say the business lunch was for the employees of my company, as a thank you / moral boost etc. Am I at risk of falling foul of BIK - where would I apportion this expense in the company accounts?

Any help / advice relating to this would be greatly appreciated.

Thanks.

 

[WizardDr]

1- Is definitely entertainment - and expensed in accounts but an add back for CT purposes as an non-allowable expense.
2- Any cost in relation to staff is deductible. I think a reasonable cost would be fine but if this became regular it might be an issue.