What are private entertainment expenses?

It should be clear when expenses are business-related or private. An entertainment expense is business-related if you spend the money to help your business earn income. Two common examples are: • entertaining an existing or potential business contact • holding an event for employees to improve engagement, eg, a party or team-building activity. If the expense doesn't help your business earn gross income, it's private and you can't claim it as a tax deduction, even if you paid for it out of your business account