𝘾𝙖𝙣 𝙬𝙚 𝙥𝙪𝙩 𝙩𝙝𝙚 𝙩𝙧𝙚𝙚 𝙪𝙥 𝙮𝙚𝙩? 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 we’re 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 £150 per head so there is no taxable benefit for the employee
- If it’s over £150 per head, then the employee needs to be taxed on the full cost
- The £150 per head is per tax year so it’s 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 𝙩𝙝𝙚 𝙘𝙤𝙨𝙩 𝙤𝙛 𝙩𝙝𝙚 𝙨𝙩𝙖𝙛𝙛 𝘾𝙝𝙧𝙞𝙨𝙩𝙢𝙖𝙨 𝙥𝙖𝙧𝙩𝙮 𝙘𝙖𝙣 𝙗𝙚 𝙙𝙚𝙙𝙪𝙘𝙩𝙚𝙙!
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.
AIMS Accountants wishes all of our clients and readers a fantastic start to the holidays!