Sometimes you might take employees, clients or prospective clients out for breakfast, lunch, dinner or a coffee and muffin to discuss work related matters and pay for it all. IRD allow you to claim 50% of these costs as an entertainment expense. If you are GST registered you can only claim 50% of the total cost for GST and also 50% for your annual accounts and income tax.

As good record keeping practice write down on the receipt/invoice who the meeting was with so that if IRD ever decide to audit you - you have thorough and legitimate documents.

Posted 26/09/2014 – Updated 16/10/2014

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