XMAS party allowance

[Nixon Williams]

Technically yes, although it might be pushing it if the Director/Secretary are husband/wife and they take their friends out with them.

Alan

[Ardesco]

What sort of burden of proof would you have to provide for the IR? I'm sure putting in receipts for up to £600 and saying "There were four of us, honest guv" is not going to be good enough for the IR.....

(Can't imagine a freind being happy about being asked to sign a bit of paper saying that they came along to a staff do for my company).

Secondly will the £150 spent on the freind who comes along have n impact on thier tax?

[Nixon Williams]

What sort of burden of proof would you have to provide for the IR? I'm sure putting in receipts for up to £600 and saying "There were four of us, honest guv" is not going to be good enough for the IR.....

(Can't imagine a freind being happy about being asked to sign a bit of paper saying that they came along to a staff do for my company).

Secondly will the £150 spent on the freind who comes along have n impact on thier tax?

If there are two members of staff then if each invites a guest then that takes you to a party of four. No more "proof" is needed. I would refer you to mr earlier comment regarding friends etc.

Provided the limit does not exceed £150 per head there is no impact on the personal tax position.

Alan

[Billy Pilgrim]

Where can I grab the official explaination of this ??

MyCo has me as director and her indoors as co secretary...

Sounds like we could have a nice little £300 night out at Xmas....(150 per head)....

But reading Tim123 comments it also appears we could have say 4 * £75 nights out instead...

Does that sound right ??

ta

[Ardesco]

If there are two members of staff then if each invites a guest then that takes you to a party of four. No more "proof" is needed. I would refer you to mr earlier comment regarding friends etc.

Provided the limit does not exceed £150 per head there is no impact on the personal tax position.

Alan

Hmm, it just seems a little too easy to abuse at the moment. You could theoretically say you have had 4 people for a party and charge for £600 and not have any proof. I can't see the IR being happy with that, they may as well give you a £300 limit per head....

[boredsenseless]

Hmm, it just seems a little too easy to abuse at the moment. You could theoretically say you have had 4 people for a party and charge for £600 and not have any proof. I can't see the IR being happy with that, they may as well give you a £300 limit per head....

Yes but you need the receipt to make the claim. If the receipt clearly says 2 meals @ £150 each and 1 double room @ £300. Then I think its pretty obvious how many people went don't you?

Slight tangent

Could you take a team of others out for beers and so long as it stayed below the £150 charge it as a 'XMAS PARTY'

[Nixon Williams]

Yes but you need the receipt to make the claim. If the receipt clearly says 2 meals @ £150 each and 1 double room @ £300. Then I think its pretty obvious how many people went don't you?

Slight tangent

Could you take a team of others out for beers and so long as it stayed below the £150 charge it as a 'XMAS PARTY'

The allowance only applies to employees, so members of your team if not employees will be treated as entertaining and so taxable.

Alan

[Ardesco]

Yes but you need the receipt to make the claim. If the receipt clearly says 2 meals @ £150 each and 1 double room @ £300. Then I think its pretty obvious how many people went don't you?

When was the last time you got a receipt that said 2 meals + 1 room....

If it is a christmass party I would expect to put a card behind the bard, hand out a token so that each employee can order drinks on said tab and then forget about all that and get down to the business of drinking.

If I then present a receipt showing that 40 odd drinks were purchased and the total value was £200 ish i could claim that as a christmas party. There would be no indication of how many people I bought drinks for (all depends on how much you can drink, if you finished all drinks, etc.).

It just seems a bit easy to abuse at the moment, or on the flip side awkward to prove if you were challenged hence why i'm asking what sort of burden of proof would be required.

[hyperD]

If you miss out on last years allowance, can you carry it forward and have £300 this year?

[Nixon Williams]

No, its an annual allowance. It is for annual events, most use it at Christmas but it can be at anytime of the year, if the company has an annual event to celebrate.

Alan