Christmas Tax Tips From AIMS Accountants

/ AIMS, Business and Economy, SME, Tax

Author: Henry Ejdelbaum

Tags: Christmas, deduction, Tax

๐˜พ๐™–๐™ฃ ๐™ฌ๐™š ๐™ฅ๐™ช๐™ฉ ๐™ฉ๐™๐™š ๐™ฉ๐™ง๐™š๐™š ๐™ช๐™ฅ ๐™ฎ๐™š๐™ฉ? 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 ย 

  • The spend per employee must be less than ยฃ150 per head so there is no taxable benefit for the employeeย 
  • If it’s 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 itโ€™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 ๐™ฉ๐™๐™š ๐™˜๐™ค๐™จ๐™ฉ ๐™ค๐™› ๐™ฉ๐™๐™š ๐™จ๐™ฉ๐™–๐™›๐™› ๐˜พ๐™๐™ง๐™ž๐™จ๐™ฉ๐™ข๐™–๐™จ ๐™ฅ๐™–๐™ง๐™ฉ๐™ฎ ๐™˜๐™–๐™ฃ ๐™—๐™š ๐™™๐™š๐™™๐™ช๐™˜๐™ฉ๐™š๐™™!

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!ย ย 

Christmas party tax tips