Christmas allowances in 2018

With Summer officially over and the cold days/dark nights creeping in, it can only mean one thing.

Time for a Christmas Party!!

Christmas parties come with all kinds of benefits, rewarding staff, building morale and finding yourself with another in the stationery cupboard, but did you know that HRMC provides exemptions from tax and NI on Limited Companies Christmas parties for employees.

There are a few rules to be eligible.

The clue is NOT in the title, it is an exemption not allowance, so you will need receipts!!

Cost – Price per person must be less than £150 inc. VAT. If the cost exceeds this, the whole amount will be taxed.

Who – Employees, employees plus one (if a family member or partner), Directors. Excluded are Shareholders that aren’t employees or directors, customers/clients.

When – Annually, the exemption covers the whole year so the total party costs for the year can not be above £150 pp.

Guests – The party must be open to all and consist mainly of employees.

Still unsure if you eligible, contact us today to find out.

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