12th December 2015 Posted by - Alexander Accountancy
Christmas is almost upon us (except at supermarkets, where it starts in September)… who wants a tax free party?
Even the smallest business can host an annual, tax-free social function for its entire staff, including the directors and their partners. As long as the cost per head is less than £150, employees are not taxed for having a good time, well not yet anyway, and the company benefits from full tax relief on the expense incurred.
Remember, however, that the £150 is an exemption, not an allowance. If the £150 figure is exceeded, the whole amount becomes taxable for inclusion on the P11D.
And you might as well give them all a turkey while you’re at it:
Sensible practical administration of the tax system determines that staff benefits of a trivial nature such as a seasonal gift of a turkey or an ordinary bottle or two of wine should not be treated as a benefit.
“God bless us, everyone”
