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Ah yes, the Christmas party season is here again and it's time to join in the festive spirit and dust off your dancing shoes for the annual work Christmas 'do':
With the tax exemption on annual events like Christmas parties, there’s absolutely no reason for your boss to go all Bob Cratchett on you this year because they can claim up to £150 for each member of staff this allowable tax deduction for business annual events is surely cause for celebration!
To make the most of this great benefit make sure:
- the event is open to all employees
- it doesn’t cost more than £150 per person, including any guests or partners invited too
Remember, this is an exemption not an allowance, so if you spend even a penny more than £150 per person you’ll be taxed on the full amount (not just the amount over £150), got it?
Actually, this tax exemption can be applied to any annual business event, from summer BBQs to Christmas parties so as the boss, you can enjoy it a little more knowing that there’s less of a tax bill the morning after.
But don’t forget, £150 is the whole amount you can spend on each person each year for ALL events you hold, not for EACH event you hold getting this wrong could end up costing you quite a bit!
Think of it like this; if you treat your staff to two regular events every year (lucky things!), as long as the combined cost doesn’t go over £150 per person, you’re a winner!
You can spend your £150 on whatever you choose – fine food, great wine, a dodgy DJ in a sparkly waistcoat, or similar cheesy entertainment, it’s up to you, but it’s all included in the exemption cost.
So go ahead and deck the halls with boughs of holly, banish the ‘Bah humbugs!’ and have yourself a merry little tax exempt Christmas party!
For more information, get in touch with us:
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