'Christmas Party' paid expenses limit?

[BolshieBastard]

Bolshie,

It's up to £150 per attendee, not per director.

Therefore if you have 2 directors, both bringing their partners, the event can cost up to £600 for the 4 attendees.

This is extended to household members. But best in mind it's not an allowance and the receipted amount must be claimed.

EIM21690 - Particular benefits: annual parties and other social functions

Ta, Lisa

[LucidDementia]

Why? Christmas party is something an employer organize and pays for his employees. It's a permie "perk".
Seems like you want to be a contractor but also have employee benefits....

Wow.

Here's a thought; just because self-employed folk "sacrifice" the "benefits" of being employees does not mean there are no benefits to being self-employed.

4 legs do not make a cow.

[BolshieBastard]

Ta, Lisa

D'oh! Sorry Louisa!

Too early in the morning I guess!

[TheCyclingProgrammer]

Reading the link Louisa posted, my interpretation isn't that the exemption applies to employees and household members, but instead that:

* Exemption applies of cost per head is not more than £150 for a single event or £150 aggregated over multiple events.

* If your party is attended by any non-employees, whether that's family or household members or clients or suppliers, they are counted when working out the cost per head, even if the cost of non employees is not tax deductible for non employees (probably counts as client entertaining).

* If the limit is exceeded, then the cost per head for the employee plus any family or household member is taxable on the employee.

So as an example, if you have 2 employees who both bring their spouse, and the event costs £750, the cost per head would exceed the limit and each employee would be taxed on the cost for both them and their spouse.

If you also invited 2 clients, with the same total, the share of the costs for the clients would not be a tax deductible expense for YourCo (client entertaining) but as the total per head is below the limit, the exemption would apply for the employees.

What I can't see anywhere is that the cost for inviting a spouse or household member would be an allowable expense for YourCo as they aren't your employee. Only that employees would be taxed on the amount paid if the exemption doesn't apply. Can anyone provide a source that says it's ok to pay for a spouse and deduct the cost from your taxable profit?

That's my reading of it anyway.

[TheCyclingProgrammer]

This link suggests the whole cost would be tax deductible for YourCo even if you had other guests attending (non employees) so long as the event is primarily for entertaining employees, though there may be restrictions on VAT reclaims of clients attend.

Staff parties and annual functions

[pr1]

make sure your party is before next Wednesday, just in case!

[northernladuk]

This is incorrect.

Lola C has been warned for providing poor advice in this forum.

WCS... That's my job!

[MrMarkyMark]

Why? Christmas party is something an employer organize and pays for his employees. It's a permie "perk".
Seems like you want to be a contractor but also have employee benefits....

You do talk some absolute carp, don't you?

I laughed out loud when you said, yesterday, what a dangerous city London is to live in.

Pathetic

[Boney M]

This is incorrect.

Lola C has been warned for providing poor advice in this forum.

I thought the same

[WordIsBond]

Seasonal parties are an employee perk, not a permie perk. If you have a company, you are an employee of that company, and it can hold a party for you and any other employees, if there are others.

Re: guests, see the second example at EIM21691. Pretty clear that the cost associated with guests is non-chargeable.

If there's a clear definition as to how many guests are allowed, I missed it.