Attain Accountancy

03/06/2026

“I sponsored a friend’s charity run — can I put it through the business?”
Short answer: only if you get advertising in return.

And HMRC is very clear about this in BIM45085.
🎗️ HMRC’s rule
If the payment is mainly to support the individual or cause, it’s not allowable.
If the payment gives your business public advertising, it may be allowable.

✔️ Allowable charity sponsorship
(according to BIM45080)
• Your logo appears on event materials
• You get a link on the charity’s website
• You receive measurable promotional exposure
• The sponsorship is structured as advertising
❌ Not allowable
• Personal donations
• Sponsoring someone because you like them
• Payments with no advertising return
• Anything driven by personal motives

HMRC’s wording in BIM45085 is blunt:
If the purpose is not wholly for business, the deduction fails.

If it’s marketing, great.
If it’s generosity, it’s not a business expense.

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27/05/2026

25/05/2026

🎤 “If I host a business event… can I claim it?”
HMRC: Tell me more… because it’s probably entertainment. 😅
Let’s talk about one of the sneakiest areas in the HMRC entertainment rules — promotional events.

Every week I hear:

“But it was a marketing event! We invited prospects! We talked about the business!”

I know.
You did talk about the business.
You did hand out brochures.
You did have a PowerPoint.
But HMRC’s manuals (BIM45055–BIM45060 if you’re feeling brave) have a very specific view on this.

🎪 HMRC’s rule in plain English
If your event includes hospitality, food, drink, or anything that feels like entertainment…
HMRC treats the whole thing as business entertainment.

Even if:

it’s a launch event

it’s a networking evening

it’s a “come meet the team” open day

you had branded banners everywhere

HMRC says: “Nice try, but no deduction.”

✔️ When events can be allowable
HMRC does allow costs where the event is:

genuinely advertising to the public (BIM45055)

open to anyone, not just clients/prospects

not selective, not invitation‑only

not centred around hospitality

Think:

a stall at a local fair

a public demo

a pop‑up in the high street

handing out samples

Basically: if it’s open to the world and not a party, you’re good.

18/05/2026

“If I sponsor a local event… can I claim it?”

HMRC: Only if you’re getting something back.

Sponsorship is one of those areas where small businesses get very excited:
“I sponsored my friend’s charity run, that’s marketing, right?”

“I paid for a banner at my kid’s football club, that’s advertising!”

“I donated to a local event, that’s a business expense!”

But HMRC’s view (BIM45080–BIM45085) is measured. There must be a commercial benefit

HMRC only allows sponsorship costs when the business receives a genuine commercial benefit.
Expenditure is allowable if it is “wholly and exclusively” for the purposes of the trade.

If it’s advertising, you’re good.
If it’s generosity, you’re not good.

11/05/2026

“I sent my clients some lovely branded gifts — that’s marketing, right?”

I can feel the hope in their voice. And I hate to be the bearer of bad news… but BIM45000 says no

Gifts to clients: usually not allowable
If it looks like entertainment, smells like entertainment, or feels like a treat… HMRC says no.
Hampers? No. Wine? Definitely no. Luxury chocolates? Still no. A branded candle? Sorry… no.
BUT — there is a tiny loophole
HMRC will allow gifts if they meet all of these:
• Cost less than £50 per person
• Carry a logo/ advert for your business
• Are NOT food, drink, to***co, or vouchers
So your branded notebook? Fine. Your branded umbrella? Go for it. Your branded gin bottle? Absolutely not

06/05/2026

04/05/2026

“Is client lunch tax deductible?”

Spoiler: HMRC says… absolutely not.

“But it was a business meeting… so lunch is an expense, right?”

I wish. Truly. I’d love nothing more than to tell you that your Pret panini and flat white are fully allowable. But HMRC’s Business Income Manual (BIM45000 if you fancy a bedtime read) says a firm nope.

HMRC blocks deductions for business entertainment — even when it’s genuinely for business.
Even when you did talk about work.
Even when the client did say yes.
Even when you really needed that coffee.