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What are the tax implications of entertaining clients at the Olympics?

Business entertainment is not allowable as a deduction against profits.

Business entertainment is defined as the provision of free or subsidised hospitality or entertainment. The person being entertained may be a customer, supplier or any other person that is not an employee of the business, but a person with whom you may do regular business and therefore want to maintain a relationship with.

In addition, any expenses ‘incidental’ to the entertainment, such as a train tickets or other transport services to and from events are not tax deductible either.

VAT can also not be recovered on business entertainment, although you this is more unlikely to be an issue in the context of the Olympics.