It is that time of year again and by now the decision on the location and format of the staff Christmas do has been decided upon.
At Best Accountancy, we decided it would be a good idea to remind the readers of the general rules relating to this expense both from an employees and an employers point of view.
The good news is that directors and employees are exempt from benefit in kind tax on annual functions such as a Christmas party cost if £150 or less is spent per head. However this party MUST be open to ALL staff.
The other good news is that the cost is also 100% tax deductible within the accounts of the business and therefore will reduce any tax liability.
There are some specific guidance you should be aware of if you are planning multiple parties or separate functions for departments or management etc, so please do give us a call at Best Accountancy should you like to double check your plans will not miss out on the valuable relief, and what sort of expense can be included and qualify as part of the £150 allowance.
The directors and staff of Best Accountancy wish you all fun and peaceful festive season.