The Dynamics of Business Entertaining: Company Cards and Expense Policies

In the realm of corporate culture, entertaining clients and stakeholders is often seen as a crucial activity for relationship building and networking. As many professionals know, the use of company funds—especially through company cards—has become a topic of discussion and sometimes controversy.

One common question that arises is: how frequently do businesses utilize company cards for entertaining clients or directors? While it’s well understood that VAT can’t be reclaimed on costs related to director or client entertainment, many employees still find themselves pondering the appropriateness and frequency of using a business card for these expenses.

The question remains—during client dinners or hospitality events, are professionals simply engaging in relationship building, or is this a gray area leading to potential misuse of company resources? With the possibility to expense event tickets and various forms of entertainment, there seems to be a fine line between legitimate business-related activities and what could be perceived as bending the rules. When does a legitimate business meal transform into an extravagant outing that could be seen as a diversion rather than a productive engagement?

While the larger corporations often have structured policies regarding what can be expensed and what can’t, it raises a curiosity about how common this practice is among smaller businesses or startups. Is this behavior a common thread in the corporate fabric across differing company sizes, or is it primarily confined to those with substantial revenues?

In closing, while personal opinions on engaging in such practices may vary, the overarching trend of utilizing company cards for entertainment appears to be nuanced and warrants a deeper dive into the ethics and effectiveness of business entertaining across all levels of corporate structures. As always, understanding the policies in place and adhering to them is essential for maintaining integrity in business practices.