The Staff Christmas Party

Monday, November 19, 2012

The Christmas Party – or any other annual event for that matter – is an allowable expense for the business and is treated as a tax free benefit for the employees.

However business entertaining is not an allowable expense for tax purposes so, whilst you can claim for any such entertaining through the business, the cost will be disregarded when calculating the taxable profits of the business.

Let’s look at the Rules

What Can Be Included?

Provided the costs are covered for all staff, all costs associated with the event can be claimed including all food & drink, travel and accommodation costs.

VAT

VAT may only be reclaimed on the portion relating to employees. VAT relating to invited partners may not be reclaimed.

If you would like to discuss any of the issues raised in this article, please contact us on 01925 212282 or send an email enquiry here.

(The author does not guarantee the accuracy of any information provided in this article and recommends that you do not take any action, whatsoever, based on the information provided. By the fullest extent permitted by law, the author does not accept any responsibility for any actions you may or may not take based on information contained in this article. This article contains general information and is not a substitute for specific independent professional advice. In addition it is emphasised that much of the information provided in this article is time sensitive. Whilst it is accurate at the time of publication (November 2012) information contained within it may be out of date.)