Take our advice and have yourself a Xmas party – tax free
Happy Christmas party from Anytime
Did you know that you can legitimately have a Christmas party and charge the cost through your own business?
Even if you have a “personal service company”, a company you provide your work through, you can go out and enjoy Christmas and pay for it through your business – and HMRC won’t charge you tax on it.
And if your spouse or partner helps you with the business – take them with.
In fact your annual “party” doesn’t even have to be at Christmas. As long as this is open to all employees the business can spend up to £150 per head, per annum (including VAT), free of all taxes. (Or have 2 functions – one in the summer and one later in the year, for £75 per head each.)
You don’t pay tax OR National Insurance on this and the business can claim it as a deductible expense.
Watch for HMRC’s small print – Scrooge is around the corner:
- Don’t exceed £150. If you do the whole lot is taxable
- The £150 includes VAT – which you can reclaim if your business is VAT registered
- It also includes any extra costs like transport
- There may be some restriction if you also entertain customers at the same time
But for example what this does mean is that a 2 person business could have a summer and a winter party, and spend up to £300 tax free.
There are other benefits which are also non-taxable – ranging from a mobile phone through to certain gift cards and other so called “trivial benefits”. Play the game properly and it all adds up and helps you enjoy more of what you earn.
For further advice existing clients email us at support@anytime.uk.com or call 03333 110 230
For new enquiries contact us now
Related Blog
Tax relief on Wedding gifts
The wedding season runs from May to September and so is now in full swing And there is tax relief available for guests if they choose to make a gift to the happy couple. Staying engaged with tax rules has always been important for couples who are planning to get married. For example, a spike — Read more
