There is an exemption from tax and National Insurance (NI) if you provide a party or similar function for employees that meets the following three conditions:
- It is an annual event
- The event is open to all of your employees
- The cost per head of the event is not more than £150
Based on the information you have provided, it sounds like the tickets will not trigger any tax or NI on your employees and will be tax deductible for the business.
But if any of the conditions have not been met- say, for instance, you do not normally hold an annual summer event- then a taxable benefit will be triggered and you will have to report the tickets to HM Revenue & Customs on form P11D. However the expenditure will remain tax deductible for the business.
If you would like to discuss making tax efficient gifts in more detail, please do not hesitate to contact your local TaxAssist Accountant.
By Jo Nockels
Disclaimer: The information provided is based on current guidance (at date of publication) from HMRC and may be subject to change. Any advice shared here is intended to inform rather than advise. Taxpayer's circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this information, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.