Does your Christmas Party give you Cold Turkey?
The Christmas Party Season is nearly upon us… but if in recent years your Party has been hampered by inclement weather or staff epidemics, or if you’re fed up with paying party season prices for chucking-out-time service, you might like to bear in mind the following:-
- The so-called “Christmas Party” allowance can be thought of as an “annual event allowance” – you could hold a Halloween Party or a Beach Barbecue instead!
- The “annual event allowance” allows for more than one event each year – so you could have the Halloween Party and the Beach Barbecue!
Just remember that to be exempt from income tax and national insurance:-
- Parties or Events must be open to all employees.
- The cost of the Event or combined costs of the Events must not exceed £150 per head.
- Should the cost of the Event(s) exceed £150 per head, then the WHOLE cost becomes chargeable to income tax and national insurance, not just the excess.
To make sure your Christmas Party or other Celebration will be tax-free, why not give HSJ a call before you make your plans Tel : 08453651000
Detailed guidance is also available at http://www.hmrc.gov.uk/paye/exb/a-z/s/social-functions.htm