It's that time of year when we all start thinking about the Christmas Party - for staff that's a chance to eat, drink and be merry. For business owners high up the list is the organisation of it and paying for the party.
Some of our clients ask about the tax implication of holding a Christmas Party for staff. The below are key points for you to consider:
1 - The cost of the party cannot exceed £150 per person. Note that this cost is across the tax year, so if you hold summer parties the total cost for both a Christmas and Summer party should be below £150 per person.
2 - To benefit from this, parties should be held annually and all employees must be invited.
3 - Have fun!!
If you're unsure about how this applies to your business please get in touch with us: