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Guidance on Corporate Entertainment

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So what if I've been invited to an event?

Government guidance is very clear that the intention behind the Act is not to penalise genuine, proportionate and reasonable hospitality, or promotional and other business expenditure, as long as it's aimed at improving a business's image, its products or services, or the establishing and continuance of cordial relations between a business and its clients.

Any corporate hospitality that's ‘reasonable and proportionate' is perfectly acceptable and you won't find yourself in trouble under the Act. There's no need to panic about being taken out to sporting events and having food and accommodation laid on.

So provided that the event is appropriate and not over the top, there is really nothing to worry about.

Note: Remember, the test is what a reasonable person in the UK would expect in relation to that function or activity. To always meet this test, make sure that what you accept isn't over the top, lavish or excessive and is the norm for your type of business.

Harvey picture

Published by Harvey

over 4 years ago

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