The season of giving is upon us once more, and lo and behold, at this time of year, even HMRC gets in on the goodwill act.
There are a number of small Christmas tax breaks available to businesses on festive gifts and celebrations,
Although the tax legislation contains an exemption to prevent employees from suffering a benefit-in-kind tax charge on the staff Christmas party, the exemption is limited in scope and application. It is unwise to assume that there will be no tax to pay – without proper planning, an unwanted tax charge may accompany the post-party hangover.
Moderation in all things is the taxman’s motto when it comes to tax-free Christmas parties. The tax legislation allows employees and their guests to enjoy a Christmas party or similar annual function without suffering a benefits in kind tax charge – as long as the event is reasonably modest. In this regard, this means the cost per head is not more than £150.
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':