Like previous years we’ve updated our allowable costs for your Christmas Party blog.
To make sure that the costs for your Christmas Party qualify as allowable there are just a few simple rules to follow.
- The party or event needs to be open to all employees
- It is an annual occurrence but doesn’t have to be at Christmas
- The event mustn’t cost more than £150 per head
If you meet the above criteria then it is allowable for tax without any Benefit in Kind implications.
Keep to these and you can have fun knowing that you’ve done things by the book!
- This is not a licence to put a flat rate of £150 through the accounts – that is NOT how it works! You account for what was spent
- If the cost is a penny over £150 then all of it is taxed as a benefit in kind!
- The £150 includes vat
- You can have more than one event but the £150 is reduced proportionately
- Like all business costs you must have a receipt for the amount spent
- The event must be for all employees and not just directors – except where the director is the only employee
- The amount spent up to the limit of £150 is for each employee. So that doesn’t mean that you can take your friends or family out for a slap up meal either! However it does mean that if you are a director and employee of your own company then you can have yourself a Christmas meal on the company!