Staff Christmas Party

The exciting bit:
It will soon be Christmas and that could mean a party!

Now for the boring bit:
A staff party or an annual function qualifies as a tax-free benefit for your employees providing that you meet the following conditions:
·        The total cost must not exceed £150 per head, per year.
·        £150 includes VAT together with any extra costs such as transport and accommodation.
·        The £150 is a limit and not an allowance: if the cost is £151, the whole benefit is taxable.
·        The event must be primarily for entertaining staff.
·        The event must be open to all staff.
·        The cost of the whole event is an allowable expense for your business.
·        You can claim back input VAT but this may be restricted where you are also entertaining customers.

The even more boring bit:
Get an invoice or receipt for your records.

Contact us here or call us on 01244 400244 should you be looking for support with any of your accounting needs.

Shaw Austin are a firm of Chartered Accountants based in Chester. We support independent business throughout the UK. We take the headache out of business accounting and taxation by providing our clients with a personal service.

Published November 2022