What type of entertaining allows for input VAT recovery?

Staff entertaining is the type of entertaining that allows for input VAT recovery. This is because expenses incurred for staff entertainment can be considered a business necessity and are often directly linked to the employees’ performance and well-being. The VAT on these expenses can be reclaimed as they are deemed as costs related to the business's employment and welfare policies.

In contrast, other types of entertaining, such as business entertaining (option A), typically do not qualify for VAT recovery because they are seen as personal benefits to clients or potential clients rather than being necessary for business operations. Non-UK customer entertaining (option C) also usually does not allow for VAT recovery due to HMRC's provisions, as the entertainment is considered to benefit the client rather than the business itself. Corporate sponsorship events (option D) often involve promotional activities rather than direct employee benefits, which means that the input VAT recovery would generally not apply in those contexts.

Thus, staff entertaining specifically meets the conditions under which input VAT can be reclaimed, focusing on the legitimate business purpose of supporting and engaging employees.