'Christmas Party' paid expenses limit?

[Gumbo Robot]

I haven't read the whole of this thread but I just had a chat with my accountant as I had a similar query.

I'm a 1 man band so the allowance is £300 (£150 for myself + £150 for partner).

So I thought I'd invite a couple more people as the £300 would go quite a long way in my local pub!

This apparently isn't legit ( though I've done it in the past) as I always have to confirm that the expense was for 2 people only.

If that's a meal I guess hmrc would want to see an itemised bill detailing 2 meals etc. But what if it's a drinks only event? You can't really tell from the bill how many attendees there were.

That's why I just keep a copy of the debit card receipt & if there are any queries later I just say it was drinks only & I like expensive champagne!

[northernladuk]

I haven't read the whole of this thread but I just had a chat with my accountant as I had a similar query.

I'm a 1 man band so the allowance is £300 (£150 for myself + £150 for partner).

So I thought I'd invite a couple more people as the £300 would go quite a long way in my local pub!

This apparently isn't legit ( though I've done it in the past) as I always have to confirm that the expense was for 2 people only.

If that's a meal I guess hmrc would want to see an itemised bill detailing 2 meals etc. But what if it's a drinks only event? You can't really tell from the bill how many attendees there were.

That's why I just keep a copy of the debit card receipt & if there are any queries later I just say it was drinks only & I like expensive champagne!

Are you so desperate to gain a bit of tax relief? it doesn't have to be an Xmas event, it can be for any events through the year and doesn't haven't be a single event either.

[Gumbo Robot]

Are you so desperate to gain a bit of tax relief? it doesn't have to be an Xmas event, it can be for any events through the year and doesn't haven't be a single event either.

Not really.

Just something I like to do at Christmas.

I was just wondering how they could ever prove that the claim was for more than the 2 permitted people, that's all.

[pr1]

Not really.

Just something I like to do at Christmas.

I was just wondering how they could ever prove that the claim was for more than the 2 permitted people, that's all.

its £300

it's £60 in tax saved

they wont even try

go back to your lives

[northernladuk]

its £300

it's £60 in tax saved

they wont even try

go back to your lives

Indeed but if you do get investigated for any reason they will go through everything with a fine toothed comb. People that don't comply with the odd rule also have a tendency not to bother with many others.

[Maslins]

Not really.

Just something I like to do at Christmas.

I was just wondering how they could ever prove that the claim was for more than the 2 permitted people, that's all.

There's two very different things, which sometimes get confused on this forum:
1) is something ok to do?
2) will you get away with it?

You are of course right that if you spend (say) £250 on a party, and put it to staff entertaining, HMRC will likely never look at it as they'll imagine it was a relatively swanky night just for staff (plus it's only £250, no huge tax loss). If it may have actually been a modest cost per head night for 20 potential clients, HMRC wouldn't know, so it's unlikely to get challenged...but that doesn't make it right.

No different to putting a holiday under travel and subsistence, or a big TV for your home under computer equipment.

[MrMarkyMark]

Indeed but if you do get investigated for any reason they will go through everything with a fine toothed comb.

Indeed they do.
We had the VAT man round for four days going through my old mans books.

Fine toothed does not begin to describe it.

[Gumbo Robot]

Indeed but if you do get investigated for any reason they will go through everything with a fine toothed comb. People that don't comply with the odd rule also have a tendency not to bother with many others.

Well I guess the trail would stop dead at my local pub in that case.

Don't think the landlord is too diligent with his paperwork & they'd never be able to reconcile my debit card receipt with the chitty with my orders on.

[Gumbo Robot]

There's two very different things, which sometimes get confused on this forum:
1) is something ok to do?
2) will you get away with it?

You are of course right that if you spend (say) £250 on a party, and put it to staff entertaining, HMRC will likely never look at it as they'll imagine it was a relatively swanky night just for staff (plus it's only £250, no huge tax loss). If it may have actually been a modest cost per head night for 20 potential clients, HMRC wouldn't know, so it's unlikely to get challenged...but that doesn't make it right.

No different to putting a holiday under travel and subsistence, or a big TV for your home under computer equipment.

I have absolutely no qualms over that one whatsoever since I look on taxation as legalised theft.

[northernladuk]

I have absolutely no qualms over that one whatsoever since I look on taxation as legalised theft.

Back to General from whence you came.