Expenditure on doughnuts for employees can be recognised as an expense
Today is Fat Thursday. In many offices, employers have decided to purchase sweet treats for employees. Will such expenses be included in company costs?
– Yes. Expenses incurred for representation purposes cannot be recognised as costs, and we cannot consider the purchase of doughnuts on Fat Thursday for employees as such an expense. These are employee expenses of an integration and motivational nature. Something sweet from the boss on Fat Thursday improves the atmosphere and integration of the team, and this translates into better performance of duties. The conditions for including such an expense as a tax deductible expense are therefore met, explains Adam Allen, tax adviser and partner at Thedy & Partners.
Enjoy!