Xmas Party Tax: What are the rules?

Are you claiming all the expenses you can in your accounts to reduce your corporation tax bill?

Company directors are entitled to provide an annual event for yourself, staff and your partner, and reclaim the costs, as long as the cost per head does not exceed £150 (including VAT), not even by a penny. The event must also be open to all company staff to attend.

This expense can even be made up of several events through the year, including the Christmas Party, summer social event and an incentive or reward event as long as it does not exceed this threshold.

Speak to us today to ensure you are minimising your tax bill…

As an example, as a team we met at the entrance of Winchester Cathedral, went around the beautiful Xmas markets, bought some lovely gifts for those close to us, ice skated, had mulled wine and hot chocolates, before having a great three course festive meal and drinks at The William Walker.

And of course all of it came in at less than the £150 per person, per head.