Parties Can Save Tax

Around this time of year people may be starting to think about booking their Christmas party, if they haven’t already.  Even the smallest of businesses can provide annual tax free events for employees. 

The costs of the party itself will be allowed against business profits for tax purposes.  As long as the annual cost of all events per employee are less than £150, then employees are not taxed for having a good time. 

In practice HM Revenue & Customs generously (these are words you don’t often see together “HM Revenue & Customs generously”) define employees as including; current employees, retired employees, and partners of existing and past employees.

Liven up your party - even HMRC don't mind you having a better time than this

So feel free to dance the night away without any worries…..

Extract taken from our 2010 Autumn edition Tax newsletter – if you would like to subscribe please leave your details here.

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