Call us 01823 218 258

Contact Us

*COVID-19 update: Many of our shops and offices are now open for face to face meetings with strict social distancing measures in place. We also offer telephone and video consultations for all new clients in order to discuss your needs. Find the latest COVID-19 information available for your business.

Christmas Party Costs

My staff will be attending a Christmas party that I have organised for them. Will the cost be an allowable deduction for my business?

Yes, this will be an allowable cost for your business as it is to reward and motivate your staff.

However, there are some rules regarding staff entertaining that you should be aware of, otherwise it could lead to tax consequences for your staff members. 

If you spend more than £150 per head, then the full amount will be taxable on the staff member; not just the amount in excess of the £150 limit. This tax charge is known as a benefit in kind. If you spend less than £150, no benefit in kind arises.

However, HMRC state that this £150 limit is to cover “annual events”, so if you provide more than one annual event, say a summer social too, then you need to make sure the cost of both events combined, total less than £150 per head. They also state that the events must be open to all staff to attend to qualify.

Please note, there are different rules if other people attend your party, such as customers and suppliers.

So as long as you stick to the costs being less than £150, then Happy Holidays to you all!

Treating your staff can be a very complex area, so call 01823 218 258 or enquire online here to arrange an appointment with your TaxAssist Accountant and give yourselves peace of mind this festive period.

Call us today to make an appointment with your local office

Consultations available by telephone or video

01823 218 258

Contact Us