XMAS party allowance

[hyperD]

Thanks Alan.

[Yatesy]

So is the company secretary deemed as being a member of staff even if they aren't on the payroll, for example;

If my father is company secretary, he could bring my mother, and I could bring my oh, meaning a total allowance of £600? Or does the company secretary have to be a paid employee for this to apply?

[Nixon Williams]

So is the company secretary deemed as being a member of staff even if they aren't on the payroll, for example;

If my father is company secretary, he could bring my mother, and I could bring my oh, meaning a total allowance of £600? Or does the company secretary have to be a paid employee for this to apply?

The Revenue refer to "employees" so if the Secretary is not paid I would not count him/her. No doubt there are many Revenue inspectors that would not bother with a challenge though!

Alan

[martinb]

The Revenue refer to "employees" so if the Secretary is not paid I would not count him/her. No doubt there are many Revenue inspectors that would not bother with a challenge though!

Alan

I've also heard a suggestion that this allowance can only be used for employees with an employment contract - in other words, company officers with no contract of employment are not covered. (I would think that this would be the situation for the majority of us).

Is anyone able to clarify this?

[Nixon Williams]

I've also heard a suggestion that this allowance can only be used for employees with an employment contract - in other words, company officers with no contract of employment are not covered. (I would think that this would be the situation for the majority of us).

Is anyone able to clarify this?

I've never come across this, in any case contracts do not have to be written down, it is just useful!

Alan

[JardIT]

I was always of the opinion that it was 150 per employee. However if what you say is true does this mean in my company with 2 employees we could expense back 600 for a party for us and our 2 partners?

[Nixon Williams]

I was always of the opinion that it was 150 per employee. However if what you say is true does this mean in my company with 2 employees we could expense back 600 for a party for us and our 2 partners?

If there are two employees then the company can invite their partners to the Christmas party, the condition is that all employees must be invited (even if they may not all go) and if partners are invited, all partners must be invited, not say just directors etc.

The allowance is £150 per person so with two employees and partners then the limit is £600 - remember not a penny above or it is all taxable.

Alan

[THEPUMA]

The expense is not automatically allowable if it less than £150 per person if it fails the basic test of not being for the purposes of the trade.

Playing devil's advocate, if you take the missus out for a meal, how does that in any way enhance the business?

Personally, I wouldn't bother to try and save £57 (£300 @ 19%) in these circumstances which just might lead to an investigation. Do all the simple things right; avoid IR35, pay both yourself and your spouse £97 pw salary and £2488 pcm divi (assuming the spouse has no income and you can afford to live on £6K pcm), accumulate the balance in the company and pay it out as a capital liquidation after 2 years. Pay for your childcare through the company and put your mobile in the company's name. Claim your travel and subsistence home to work (assuming it qualifies).

This will save £10,000's. Forget about £57.

[Ruprect]

The expense is not automatically allowable if it less than £150 per person if it fails the basic test of not being for the purposes of the trade.

Playing devil's advocate, if you take the missus out for a meal, how does that in any way enhance the business?

Personally, I wouldn't bother to try and save £57 (£300 @ 19%) in these circumstances which just might lead to an investigation. Do all the simple things right; avoid IR35, pay both yourself and your spouse £97 pw salary and £2488 pcm divi (assuming the spouse has no income and you can afford to live on £6K pcm), accumulate the balance in the company and pay it out as a capital liquidation after 2 years. Pay for your childcare through the company and put your mobile in the company's name. Claim your travel and subsistence home to work (assuming it qualifies).

This will save £10,000's. Forget about £57.

Merry Christmas THEPUMA. Humbug!

[boredsenseless]

The expense is not automatically allowable if it less than £150 per person if it fails the basic test of not being for the purposes of the trade.

Playing devil's advocate, if you take the missus out for a meal, how does that in any way enhance the business?

To mix two threads here, on one hand you say its dubious to take advantage of a tax break that HMRC even publicise and then on the other you suggest its perfectly okay to misappropriate company money to give a direct benefit to an individual in the form of reduced interest on their mortgage.

Talk about not seeing the forest for the tree!