Income Tax (Earnings and Pensions) Act 2003 section 356

Disallowance of business entertainment and gifts expenses

Section 356 prevents employees from claiming a tax deduction from their earnings for expenses they incur on business entertainment or gifts connected with their employer's trade, business, profession or vocation.

• Employees cannot deduct expenses for providing entertainment or gifts connected with their employer's trade, business, profession or vocation
• This general prohibition is subject to specific exceptions set out in sections 357 and 358
• "Entertainment" is broadly defined and includes hospitality of any kind
• The disallowance extends to any incidental costs associated with providing entertainment or a gift