Written by Director Huw Moseley:
My wife kindly informed me this morning that there are 100 days left till Christmas – and that we really need to plan our company party here in Bloxham! If you’re thinking about holding a festive get together for your employees, you might be interested in finding out exactly what you can claim tax-free…
HMRC allows an exemption from tax, NIC, and reporting for: an annual event that costs no more than £150 per head and is open to all your employees.
That’s not a bad budget per head for a party! But don’t be tempted to overspend because if it costs just £155 per head – you cannot offset the first £150!
You can only use the exemption once per tax year to its maximum value. This means you could have a summer BBQ and a Christmas party – but the combined total must only be a maximum of £150.
- So if the BBQ costs £50 and the Christmas party costs £105 – you cannot claim for the Christmas ‘do’ because it’s over the tax-free threshold.
- But if each staff gathering costs £75 per head, then you can claim because the combined cost is the magical figure of £150
Make sense? Hope so!
But I have even better news for my wife – like your business, Link Accounting can claim a £150 exemption for any family members who attend the party… so we can go wild to the tune of £300 tax-free on our Christmas night out!
It’s always worth checking what you can claim via your business expenses… there are lots of challenges when it comes to employing people – but there are the occasional tax-free perks like this one! Do drop me a line if you’d like to find out about the other ones!
For now though, it’s far too early… but I’m going to say it anyway: JUST 100 DAYS TILL CHRISTMAS!!!