The Christmas party is a business owner’s worst nightmare. You have to host a party that you have to pay for; it’s like buying your own birthday present. But there are tax reliefs available which should take some of the sting out of the tail.
We are in a recession, so naturally a reduction in your entertaining budget is one of the first to be squeezed, but wait, you’ve just received a call from your AIMS Accountant who has advised you that it’s an allowable tax deduction for businesses* as long as you don’t spend more than £150 per employee.
So as long as you don’t invite any clients (as they are never an allowable deduction for business tax purposes) you will be quid’s-in.
With that in mind, enjoy your Christmas party secure in the knowledge that you can reclaim the VAT.
And the best thing is you don’t even have to pay VAT on your Christmas Turkey.
We hope you have a great festive period. If you like how we think and want to find out more about saving tax and VAT for your business then get in touch, your local AIMS Accountant would love to hear from you.
Click here to see our interactive map, we are never far away.
*does not apply to sole traders and business partners of unincorporated organisations.