Christmas Party Season – Don’t Invite The Taxman

With December almost upon us, it Is the season of the office party. Everybody loves a Christmas Party, even the Taxman, so from an income tax point I thought I would keep you updated.
For Limited Companies, an annual event to which all staff are invited will not be a taxable benefit provided the cost per head, including VAT, does not exceed £150. Incidental costs would also be included within this limit such as taxi fares and any hotel rooms that are paid for.
Notice the rule says “per head”, not “per employee”. The good news is that this means that if there are 20 employees and they all come to the Christmas party with a partner you could spend up to £6,000 without tax being an issue.
The bad news for VAT registered businesses is that VAT can only reclaimed on the amount spent on members of staff. In the above example, £3,000 of the total.”

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The information contained in this website is for general information purposes only. The information is provided by ADM Accountancy Services Ltd and while we endeavour to keep the information up to date and correct...
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Company Info:

ADM Accountancy Services Ltd
Registered in England and Wales.
Registration Number: 06912489

Contact Info:

Phone: 01242 679 767
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Unit 5, Tarlings Yard, Church Road
Bishops Cleeve, Cheltenham
Gloucestershire, GL52 8RN
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