Can my limited company claim World Cup tickets and hospitality as “entertaining” expenses?
World Cup tickets and hospitality packages are brilliant for relationships, but UK tax rules are famously unsentimental about them.
At Blue Rocket Accounting, we’re often asked whether a limited company can “put it through the business” and get a tax deduction. The short version: you can usually pay for the tickets via the company, but that does not mean the cost is tax-deductible, and it may create a personal tax charge depending on who attends and why.
1) Client entertaining: almost always not deductible for Corporation Tax
If the purpose is entertaining clients, potential clients, introducers, suppliers, or other business contacts, HMRC treats this as business entertainment. In practice, that means the cost is disallowed when calculating taxable profits, even if it genuinely helped win work. HMRC guidance also makes clear that paying a specialist provider for hospitality still counts as entertaining expenditure.
What this looks like in the accounts: the company records the spend as entertainment in the profit and loss account, then your accountant “adds it back” in the Corporation Tax computation(so you don’t get tax relief).
2) VAT: input VAT is usually blocked on business entertainment
If your company is VAT registered, VAT on client hospitality is generally not recoverable under the business entertainment rules.
There are narrower exceptions (for example, specific scenarios involving overseas customers), but for most UK business-contact hospitality, assume VAT recovery is blocked unless you’ve had advice on your exact facts.
3) “Associated costs”: travel, meals, hotels usually get the same treatment
The extra bits that come with a World Cup trip (flights, trains, taxis, hotels, meals, drinks) don’t magically become allowable just because they’re itemised separately. If they’re incurred to deliver the hospitality/entertainment, they’re typically treated as part of the entertaining package for tax and VAT purposes.
4) Staff entertaining: potentially allowable, but watch the benefit rules
Entertaining that is only for employees can be treated differently. HMRC recognises exceptions where events are open only to employees (still subject to the “wholly and exclusively” business test).
Separately, there’s a well-known £150 per head annual functions exemption for employee social events (conditions apply, and the £150 is a hard limit).
World Cup hospitality commonly exceeds this, so even where it’s “staff entertaining”, you may trigger a taxable benefit in kind for attendees.
5) Directors and family members: the biggest trap
If you(as director/shareholder) attend and there isn’t a strong, evidenced business purpose, or if family/guests attend - HMRC may view the cost as personal. That can mean a benefit in kind, a director’s loan implication, or a distribution-style treatment depending on circumstances.
How to stay compliant (and sleep at night)
- Be clear who is attending: employees vs non-employees.
- Keep evidence: attendee list, business rationale, and any meetings that took place.
- Expect client hospitality to be non-deductible for Corporation Tax and usually no VAT reclaim.
- If your goal is marketing, consider whether sponsorship/advertising (with genuine brand exposure) is more appropriate than hospitality, the tax outcome can be very different.
If you’re planning a big-ticket hospitality booking, speak to us before you press “confirm”. A small tweak to structure and documentation can prevent an expensive surprise later.
More expenses related blogs...
Food & Drink Expenses for UK Limited Companies. HMRC Rules Explained | Blue Rocket
Is My Office Dog a Business Expense? | Blue Rocket
Mobile Phones As A Company Expense: A Guide for Directors | Blue Rocket
This article is provided for general guidance only and does not constitute tax or financial advice. Tax rules depend on your specific circumstances, so you should seek professional advice from a qualified accountant or financial adviser before making any decisions.
