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Business expenses

  • 18-08-2007 7:30pm
    #1
    Closed Accounts Posts: 1,974 ✭✭✭


    Hi I got a question regarding expenses that I never claimed before while my accountant is away for holidays.

    I spent the following with a new business recently:

    - Business cards
    - Limited company fees set up (280 euro)
    - 2 bottle of champaign for my first customer (109.98 euro)
    - Job advert in Monster (300 euro) paid with my credit card

    As a director, can I claim those particular expenses back and write a cheque to myself from the company bank account ?

    Thanks a lot for your help


Comments

  • Hosted Moderators Posts: 9,921 ✭✭✭mik_da_man


    You can defo claim the Co set up fee, business cards and the advert.
    As for the champange - I'm not too sure about the "proper" procedure but i'd say it's ok

    Mik


  • Closed Accounts Posts: 1,974 ✭✭✭mick.fr


    Alright thank you


  • Registered Users Posts: 2,734 ✭✭✭Newaglish


    I'm not a tax expert, but i'm fairly certain that alcohol cannot be claimed as a valid working expense. Thus, you can pay yourself the 100 euro from the company but it will be regarded as taxable income.


  • Closed Accounts Posts: 2,290 ✭✭✭ircoha


    Newaglish wrote:
    I'm not a tax expert, but i'm fairly certain that alcohol cannot be claimed as a valid working expense. Thus, you can pay yourself the 100 euro from the company but it will be regarded as taxable income.

    Why alcohol?
    the issue is is the expense wholly and necessarily for the benefit of the company.

    It is clearly not business entertainment which is not allowable.

    However the problem is how can you prove the gargle was for the customer and not just for you: tough one.

    My quess here is that u are still small enough not to be audited so you will just have to keep the receipt for 6 years and hope you dont get asked to prove it.

    In my experience it will be difficult to prove and only attract attention if u are inspected by revenue so I would leave it out: after all it is only the tax you are saving, not the whole lot.
    The rate is 12.5%:D or 14 euro on 109

    hardly worth an inspection of EVERYTHING!


  • Registered Users Posts: 2,734 ✭✭✭Newaglish


    2 bottle of champaign for my first customer
    ircoha wrote:
    It is clearly not business entertainment which is not allowable.

    Sounds like business entertainment to me!

    I can't think of any situation where you could claim the purchase of two bottles of champage as an expense wholly and exclusively for the purposes of the trade, unless you sold it on. In which case the OP would need a license to sell alcohol and so on and so forth.

    Edit: Unless it was for staff entertainment purposes!


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  • Closed Accounts Posts: 1,974 ✭✭✭mick.fr


    Alright in doubt I will leave it out, it is only 100 quid, not the end of the world.
    Thanks for your inputs.


  • Closed Accounts Posts: 23 poolfc


    Id claim it as a business expense. Its a gift so its grand as a business expenses. But its not tax deductable. when you claim your next expenses. put all your expenses on a spreedsheet and total it. attach all the receipts to the back of your sheet. write your self the check and forget about it. if you want you could take a pic of you presenting the bottle to your customer. that would take care of any revenue problems. but as you say its 100 so not really a big issue


  • Closed Accounts Posts: 21 mckers


    Mick.fr

    As all the expenses were incurred for business purposes, although paid by you personally, it is 100% perfectly acceptable for you to be reimbursed in full for all the expenses (including the champagne).

    In the eyes of the company/business, there is no PAYE/PRSI consequences.

    The champagne, being for client entertainment, will not be tax deductible for the company/business. Additionally, any VAT incurred on the champagne cannot be claimed back from Revenue


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