Is it safe to mention Christmas yet?
There has been a real appetite for us to socialise this year, with many of our clients enjoying summer parties with their customers and employees. As we start to think about the end of the summer holidays, children going back to school and return to work for many of us, thoughts also turn towards Christmas parties and Secret Santas. So what about Christmas parties and tax liabilities?
You can claim £150 including VAT per employee and their plus one – but this covers the entire year, not just the Christmas party. So now is the time to look at what other events you have put on for your staff this year to make sure you don’t exceed the £150 limit.
if you do exceed the limit, it will be deemed to be a benefit in kind, resulting in an income tax and national insurance liability, which will considerably dampen the festive spirit.
If you are in any doubt, and do not want to feel like Scrooge, please talk to your AIMS accountant. If we can help you stay on the right side of taxable benefits, we will!
You can find your nearest AIMS accountant here.