Your guide to tax free staff Christmas parties
There’s a way you could fund your staff social events without generating a tax bill! This isn’t a concession - if the conditions are met it’s a legit statutory exemption.
Condition #1. The party is an annual party that is open to all employees (or those at a specific location, including virtual parties!)
Condition #2 The cost for this party/function is up to £150 per head including VAT. If you go over this, then the cost of the event becomes fully taxable - not just the amount over £150.
Have you already held a staff annual party this year, say a Summer BBQ or an Easter get together but want to have a Christmas party? So long as the cost per head over the two events doesn't go over £150, then there's no tax to pay for both events! If the cost for both does go over £150, then you can choose which event to use the exemption on as an employer! Hint: it's usually the more expensive one!
Cheers to tax free staff Christmas parties this festive season! We'll drink to that!
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