With only a few sleeps left until Christmas, we’re already excited – the Christmas tree is up in the MJF office and, because we’re really impatient, we had our Christmas night out at the tail end of November.
But, while we’re all getting into the festive spirit, is the taxman waiting to crash your Christmas party?
The general rule for social events provided by an employer is that the employee is actually taxable on their share of the costs. This might seem a bit harsh but there is an exemption which applies to an annual party, eg the Christmas bash.
If you provide only one annual function for employees, there’s no tax as long as the cost of the event is less than £150 per person. If you’re feeling super generous and provide two or more parties, they’re tax free until the total exceeds £150 per person.
And, remember that business gifts are tax deductible as long as the gift:
- has a conspicuous advert for your business
- isn’t food, drink, tobacco or vouchers
- isn’t more than £50 per person per year
Which seems to take out all the good stuff!
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Added by Jon Davies If you like it, please share it!