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2 December, 2018
Christmas time tax-free perks are available if you are organising a Christmas party for your staff. Many businesses take time out to provide their employees with a work based party or similar event. If you are concerned about the tax consequences of Christmas celebrations, read on. There are ways to organise these events without falling foul of HMRC. December gives us an excuse to enjoy a well-earned celebration with our work colleagues and partners. The cost of an annual staff party or similar function is allowed as a deduction for tax purposes. However, the cost is only deductible if it relates to employees and their guests, which would include directors in the case of a company, but not sole traders and business partners in the case of an unincorporated organisations. Also, it does not include ex-employees.
If the criteria below are followed there will be no taxable benefit charged to employees:
We hope you enjoy your staff party with all the Christmas time tax-free perks. Have a very Merry Christmas!
Blog post by: Ian Marlow