Briefly identify the main taxation consequences of the provision of the facilities described in Note 6; Note 6 - The directors have noted that they think that all of miscellaneous expenses should be allowable for tax purposes. It includes £15,000 for the costs of renting an executive box at the local horse racing track – the executive box is usually used to put on events involving clients, suppliers and prospective clients – the catering and associated costs of these events was £18,000 during the year (in addition to the basic rental). The company also pays for the annual staff Christmas party – this cost (of £7,000) for around 70 staff and guests in total was also charged here.
Briefly identify the main taxation consequences of the provision of the facilities described in Note 6; Note 6 - The directors have noted that they think that all of miscellaneous expenses should be allowable for tax purposes. It includes £15,000 for the costs of renting an executive box at the local horse racing track – the executive box is usually used to put on events involving clients, suppliers and prospective clients – the catering and associated costs of these events was £18,000 during the year (in addition to the basic rental). The company also pays for the annual staff Christmas party – this cost (of £7,000) for around 70 staff and guests in total was also charged here.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Briefly identify the main taxation consequences of the provision of the facilities described in Note 6;
Note 6 - The directors have noted that they think that all of miscellaneous expenses should be allowable for tax purposes. It includes £15,000 for the costs of renting an executive box at the local horse racing track – the executive box is usually used to put on events involving clients, suppliers and prospective clients – the catering and associated costs of these events was £18,000 during the year (in addition to the basic rental). The company also pays for the annual staff Christmas party – this cost (of £7,000) for around 70 staff and guests in total was also charged here.
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