Client Christmas Party

[tractor]

...

Not in my opinion. It is the fact they are invited to a staff event that indicates that they are being treated in a similar way to employees. We would not invite our window cleaner, IT providers etc. to our Christmas party.

Martin, the OP said they had to pay. That is actually a pointer outside as they can demonstrate they are treated differently. It's no different to having to pay for parking where employees get it free or not getting subsidised meals where employees do.

[TheFaQQer]

Even if it were an indicator, it wouldn't be an important one. However, in this case, there's an explicit separation between employees and contractors. I think people can get carried away with the minor details of IR35. It's the big picture that matters (RoS, MoO, D&C) and building a relationship with the client is an important part of being in business (i.e. one can do this without it being in an employer-employee relationship). It's pretty routine to invite reps from large suppliers to a Christmas party, so I see no problem in inviting small ones too. Personally, I'd steer well clear of Christmas parties because they totally suck, but that's a separate issue

+1 to both the IR35 bit and the last line.

[Platypus]

I wouldn't class it as 'client entertaining' since you're not entertaining a client.

I'd class it as a networking event or business development, fully claimable and allowable.

[northernladuk]

Not in my opinion. It is the fact they are invited to a staff event that indicates that they are being treated in a similar way to employees. We would not invite our window cleaner, IT providers etc. to our Christmas party.

Probably cause none of them own jumpers/jackets with elbow patches on so won't adhere to the strict dress code.

[BolshieBastard]

My client is having a Christmas Party for it's employees. It has also invited contractors - but we have to pay (it's free for employees).

To attend means travel up to London (where the event will be held), potential stay overnight etc. Am I right in thinking this can be expensed as 'client entertainment' - so not deductible for corporation tax - but an allowable business expense?

Thanks.

Tell them you're not attending and use £150 for each of your co's directors to have their own christmas bash in a location of your choice. Each director can take one guest and allocate £150 for each IIRC. Dont go a penny over the 150 though!

[bigmaz]

Tell them you're not attending and use £150 for each of your co's directors to have their own christmas bash in a location of your choice. Each director can take one guest and allocate £150 for each IIRC. Dont go a penny over the 150 though!

Is this possible to do, and are most accountants happy to put it through? I have seen a few people mention this, but then a other people saying not to do it. If my wife is a director, could we potentially have a company xmas meal and drinks?

[TheCyclingProgrammer]

Is this possible to do, and are most accountants happy to put it through? I have seen a few people mention this, but then a other people saying not to do it. If my wife is a director, could we potentially have a company xmas meal and drinks?

Google for HMRC and annual events. Yes, you and your wife could have a company Xmas drink as long as the cost is below £150 a head. As you're both directors, you could also bring a guest each I think. If you wanted to. Don't let the tax tail wag the dog

[bigmaz]

Google for HMRC and annual events. Yes, you and your wife could have a company Xmas drink as long as the cost is below £150 a head. As you're both directors, you could also bring a guest each I think. If you wanted to. Don't let the tax tail wag the dog

Ah, cheers, just read the HMRC guidelines on this. So it is £150 per head, the whole night's cost is divided into the number of people attending, and that works out the total per head? As long as that is not above £150. Is this totally paid for by my ltd company, or would I have to put some money towards it personally? Sorry, I dont know the proper terminology

[Alan @ BroomeAffinity]

The company can pay up to £150 per head. DO NOT EXCEED this as then the whole thing becomes taxable, not just the excess. You don't need to make any contribution personally. It's a purely company thing. And remember, this is the maximum allowable, not a flat rate allowance. You can only claim for what you spend. But remember it's an annual allowance so any unused amount can be carried over to another event in the same year.

[TheFaQQer]

The company can pay up to £150 per head. DO NOT EXCEED this as then the whole thing becomes taxable, not just the excess. You don't need to make any contribution personally. It's a purely company thing. And remember, this is the maximum allowable, not a flat rate allowance. You can only claim for what you spend. But remember it's an annual allowance so any unused amount can be carried over to another event in the same year.

Is that per company trading year, calendar year, or personal tax year?