29th November 20221 Min Read
Christmas Tax Tips From AIMS Accountants
๐พ๐๐ฃ ๐ฌ๐ ๐ฅ๐ช๐ฉ ๐ฉ๐๐ ๐ฉ๐ง๐๐ ๐ช๐ฅ ๐ฎ๐๐ฉ? This Thursday will be December 1st and most businesses will have planned a party. Bringing up tax at a party might well be the ultimate mood killer, but weโre going to do it anyway because there are some Christmas tax tips that can help you save money!
Tax tips for your holiday party
- The spend per employee must be less than ยฃ150 per head so there is no taxable benefit for the employeeย
- If itโs over ยฃ150 per head, then the employee needs to be taxed on the full costย ย
- The ยฃ150 per head is per tax year so itโs important to factor in any other events you might have done in that tax year.
- The tax year started on 6 April 2022 and ends on 5 April 2023. Tax dates are the same every year
Remember, even though client entertaining is generally not an allowable expense for corporation tax purposes, the cost of employee entertaining is an allowable expense. This means ๐ฉ๐๐ ๐๐ค๐จ๐ฉ ๐ค๐ ๐ฉ๐๐ ๐จ๐ฉ๐๐๐ ๐พ๐๐ง๐๐จ๐ฉ๐ข๐๐จ ๐ฅ๐๐ง๐ฉ๐ฎ ๐๐๐ฃ ๐๐ ๐๐๐๐ช๐๐ฉ๐๐!
As always, things might not be quite this simple with HMRC, so contact your local AIMS Accountant if you want further clarification about your Christmas party or tax in general.ย
AIMS Accountants wishes all of our clients and readers a fantastic start to the holidays!
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