xmas party CUK article incorrect?

[Lance]

The actual legislation makes light reference to attendees who aren't employees, and doesn't say they can't have their own £150 allowance - therefore resulting, I think, in the accountants assumption that they can.

Income Tax (Earnings and Pensions) Act 2003 (note the £75 figure shown was amended in later legislation to £150)

So I'd say it's £150 per head. Although I don't think you're really saving money at all if you go out looking for restaurants where you can pay that much

Yes it is. I have an annual staff party for me. And my guests are wife and child. £450 is a good party. Accountant says it’s fine.

[Lance]

Like it - then I get a free day out and save on the corp. tax bill

You can’t claim it as an expense. It’s after CT and you can’t have the VaT back either.

[TheCyclingProgrammer]

You can’t claim it as an expense. It’s after CT and you can’t have the VaT back either.

A staff annual event is an allowable expense for corporation tax purposes and the VAT is recoverable (even if it exceeds the per head BIK limit).

[eek]

Visiting accountingweb it’s remarkable how different the answers look depending on the viewpoints of people

[northernladuk]

Visiting accountingweb it’s remarkable how different the answers look depending on the viewpoints of people

Indeed but doesn't help when people try and take the piss by funding family days out for which the rule was never designed.

[craig1]

I don't trust accountants to answer things like this properly, they usually give the most cautious answer when they don't know.

What I've done in the past when I have a query like this is call HMRC and ask them the answer. And then make sure I get the call reference number as the answer is logged. Over the years I've found HMRC to be fast and responsive, with a clear and unambiguous audit trail for if someone decides later that they don't it; unfortunately their staffing issues mean they have been getting a bit slower in the last couple of years.

I'm far too tight to pay for an accountant.