Do I have to keep receipts for the Christmas party allowance? My accountant doesn't seem to think so and is suggesting I can transfer myself £150. Is this correct?
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Incorrect. Get a new accountant. -
Could you provide me with a link that disputes this? This is the second piece of wrong information this accountant has provided me with. They have also advised that I don't need to pay student loans as a contractor. So I am legitimately thinking of switching away from them.Originally posted by MrButton View PostComment
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The cost must be incurred for the event.
Without a receipt you would need to be able to prove the cost in some other way ... as any other expenses.
Otherwise how would you prove that the total cost was =< £150 per head?
A quick google I found this:
The cash equivalent of an employment-related benefit is to be treated as earnings from the employment for the tax year in which it is provided.
Income Tax (Earnings and Pensions) Act 2003
I’m interested in who your accountant is so I don’t use them.Comment
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Did you have a Christmas party?Comment
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It's gonna happen this week. But it might not come up to 150 which is why I am hesitant to just add 150 to my expenses.Originally posted by mudskipper View PostComment
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Add whatever it comes to - with a receipt. Make sure it doesn't go a penny over or the whole lot is taxable.Originally posted by cannon999 View PostComment
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You will have to make student loan repayments if your total income exceeds the level set for your loan (there are different schemes so I can't say which threshold applies to you).Originally posted by cannon999 View Post
Of course, if your total salary and dividends comes in under that threshold then you will not be required to make student loan repayments.Comment
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This. Maybe your accountant is a numpty, but maybe there's just crossed wires here. Eg perhaps their comment was something like that you won't have to make any student loan repayments via payroll (ie rather than none at all).Originally posted by ladymuck View Post
Defo agree just handing out £150 cash to each staff member and saying there's your staff party allowance wouldn't wash. There's a good chance you'd get away with it...but doesn't mean it's right.Comment
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The advice you have received from your accountant is terrible.
The advice you have received above is correct.
One point though, the allowance is £150 per head, so you can maybe have a more lavish function than planned.
The other point is, it doesn't have to be a Christmas party, just an annual function. So could be an easter or summer party, but couldn't, for example, be for the celebrating a contract extension.Comment
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