I was at the Bruce Springsteen concert at Anfield last night with (a slightly reluctant) Louise.
I’ve seen him a few times but it was Louise’s second time, and first for nearly 20 years. The first time she knew 2 ½ songs from his 3-hour set (she definitely knew two and one was “slightly familiar”), so you’ll be glad to know that last night’s score was up to 4 ½…helped by a Beatles cover.
Anyway, it got me thinking about a very common question I get asked:
“Jon – can I put concert/football/theatre tickets or client meals through the company?”
- Short answer: usually no – HMRC will be Blinded by the Lights and block the deduction.
- Long answer: there are a few exceptions, but you’ll need to hit the right notes.
Client entertainment
HMRC lumps gigs, meals, golf days, etc into business entertainment. Unless you’re charging the client for the ticket, corporation-tax relief is blocked…even if the night out does help close the deal.
VAT is also a no-go – there’s No Surrender from HMRC. If you invite a prospect to see The Boss, pay for it on the company card by all means – but you can’t reclaim the VAT.
(And one of my pet hates when sitting at the match is seeing the adverts for corporate hospitality at £x plus VAT when you can’t reclaim it anyway.)
Staff parties
It’s a different tune if the audience is your own team. The annual-function exemption lets you spend up to £150 per head (including VAT) across the tax year on staff-wide social events, The cost is:
- Tax-deductible
- VAT-reclaimable
- Free of Benefit-in-Kind for employees
To ensure it’s allowable, you need to:
- Invite all employees (or all in a location/department)
- Stick to the £150 per head cumulative annual limit
VAT quirks
HMRC blocks VAT on entertainment for non-employees. The only exception is if the guest is an overseas customer you’re doing business with – then you can reclaim the VAT. (Perhaps they were Born In The USA?)
There’s still no corporation-tax relief, though.
For staff events, recover the VAT as normal provided you pass the £150 per person tests above. And, to be clear, the £150 includes VAT.
More quirks
- Training or promotional events – if the gig is genuinely an educational seminar, costs may be allowable. (Think I’d be struggling to claim that inspiring this blog would make last night count!)
- Recharging the client – bill the ticket on to them and it becomes part of your taxable supply.
- Subsistence on business travel – where the concert is incidental to a business trip, you may still claim normal travel & subsistence but not the ticket itself.
Your set-list checklist
- Who’s on the guest list? Staff vs clients?
- Is it a staff event? Yes => the £150 rules apply.
- Total cost per head? Stay under £150 to keep it tax-free for employees.
- Overseas customers only? You might reclaim the VAT.
- Record it clearly as disallowable/allowable in your bookkeeping software.
Follow that, stay on Thunder Road, and your accounts will be Glory Days.
If you have any questions, please hit “reply” or give us a ring on 0151 380 8084.
Many thanks
Jon
PS I doubt my team would have thanked me for a team trip to see Bruce, but they might enjoy my next two concerts – Olivia Rodrigo and Sabrina Carpenter!