Xmas party time is almost upon us. Obviously depending on the current situation due to the Coronavirus, you may want to invite your employees to the Xmas party; if allowed. It is an exceptionally good way to show your employees appreciation and to build a team spirit.
5 reasons to have a Xmas party:
- The costs are qualifies as expenses – The costs per employee cannot exceed £150 – including meals, transport, and overnight accommodation
- You can deduct additional £150 per partner invited by your staff – cost is per ‘head’
- By deducting cost you lower your corporation tax
- Employees will appreciate you, you build good working environment and potentially your employees will identify with your company and may be more loyal
- Potentially you can claim back the VAT
You must remember few important BUTs:
- The cost per person cannot exceed £150.00, even for a penny
- Limit of £150 is applied to all the parties, so if organise more than one total annual cost per head is £150
- You have to keep all the receipts; you cannot just deduct £150 without the proof
- The party has to be open to all employees, not only directors, unless all your staff are directors
- The party must take place, you cannot just plan it
If you need any more information, please contact me.
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