01392 288555

News & Blog

Have you had your Christmas party yet or are you holding yours in January? Whatever you do don't forget the HMRC rules.

Businesses are allowed to spend a tax free amount of up to £150 per member of staff each year. The rules apply to any party or similar function, which must be open to staff generally or to workers at a particular location. As the tax free limit applies for a tax year you can put on a summer event and a Christmas party as long as the total cost for both is less than £150 per head. Don't forget the £150 per head includes items such as accommodation and transport not just food and drink. As long as the cost per head stays under the limit employees can bring their partners along, and businesses get tax relief on the total cost.

Remember though that if your company spends as little as one penny over the £150 limit, the full amount becomes liable for income tax and national insurance for both staff and employer alike.

Happy Christmas and new year to you all!