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HMRC internal manual

Employment Income Manual

Other expenses: entertainment expenses: application of Section 336 to entertainment expenses: entertaining at the employee's home

Section 336 ITEPA 2003Remember that before you consider the application of Section 336 ITEPA 2003 to entertainment expenses incurred by an employee or office holder you must first satisfy yourself that Section 356 does not prohibit a deduction (see


In cases where a deduction is requested for entertainment provided at the employee’s own home, limit any deduction to the additional outlay on food, drink or other entertainment. In cases where a deduction is due, expenditure in respect of the employee’s spouse or partner can normally be admitted. But do not allow costs relating to other members of the family or personal guests whose presence cannot be justified by reasons directly connected with the individual’s employment.

Expenditure at living accommodation provided by the employer should be dealt with along the same lines.