Christmas on HMRC

As the party season approaches many employers are planning staff events. It is worth knowing that the whole cost can be deducted for tax purposes providing the following conditions are met.

• The party must be annual, meaning it does not have to be at Christmas

• The event must be available to all employees

• The cost per head must not exceed £150 including VAT

The exemption can also be split across more than one social event too so there is nothing stopping employer’s holding a summer party as long as the combined costs are not in excess of £150 per head.

Time to get party ready........