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30/10/19 10:46

Christmas is coming! - is it tax deductible?

We seem to think of Christmas sooner and sooner each year, but to book your office party, there is no time to lose. And hopefully it isn't too early to offer advice on how to ensure that your Christmas party is allowable for tax.

The rules applying to limited companies hosting a Christmas party for staff are;

1. The party must be open to all employees.

2. It is an annual event.

3. It does not cost more than £150 per head.

Be aware of potential pitfalls

1. This is not permission to put through a flat rate cost in your accounts of £150 per person.

2. If you exceed £150.00, even by 1p, then all of this £150.01 becomes a taxable benefit in kind on the party goer!

3. The £150 includes VAT.

4. If you run several events per annum, the allowable £150 is divided by the number of events.

5. You must have receipts for the amount spent.

6. The event must be for all staff, not just the directors.

Happy Christmas all.

Contact us if you need further advice.

18 Bachelors Walk Lisburn BT28 1XJ

Christmas is coming! - is it tax deductible?

18 English Street Dowpatrick BT30 6AB

Written by: Norman Elliott FCA
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