We do like a Christmas party, but can HMRC tax it?
We love giving our staff a Christmas Party. It’s a great way to thank them for their hard work and we also like to give them perks throughout the year. But always remember that there may be tax implications in doing this.
It’s a fact of life that not much goes unnoticed by HMRC and this is true of employee benefits. But to add to the complexity of it all there are some exceptions that HMRC allow to go tax free.
Depending on the circumstances the following can be tax-free, or not:
- Employee loans
- Gift of shares
- Staff entertainment…
The list goes on and the rules are very prescriptive. We like tax but even we don’t like the current tax system. Speak to your accountant to get a proper view on your taxable activities.