Staff entertainment - guests?

[d000hg]

I've got out of the habit of having a "Company Xmas meal" and while I know guests may be invited, I'm not sure:

1. Is there a limit on guests per member of staff
2. Does the £150 exemption apply for each staff member or each person attending

It's been enough years that when I've done this before, the total bill for my wife and I wouldn't have exceeded £150 anyway I saw something about a larger company getting the total bill and dividing it by the number of people.

[northernladuk]

https://www.google.com/search?q=chri...t=gws-wiz-serp

https://www.gov.uk/hmrc-internal-manuals/employment-income-manual/eim21690

It says somewhere the primary reason must be for entertaining employees. If it's just you the wife and someone else it fails that test.

[d000hg]

It says somewhere the primary reason must be for entertaining employees. If it's just you the wife and someone else it fails that test.

But it says that in the context of "it can't be about entertaining customers", IIRC?
I can speak for 100% of the staff that the primary reason for me having dinner with e.g. a couple of dolly birds is my entertainment

I'm not looking to have more than one guest but it just made me curious. I'm sure there must have been a case where a company has invited "employees and partners" only to get a response "I'm in a thruple so I can bring them both?"

[northernladuk]

Bigger companies don't just look at parties for a tax wheeze. They can invite as many people as they want, they just can't claim the tax back on it, which isn't their primary concern

[sadkingbilly]

geez. the lengths some will go to, to save £10 in tax.

[Craig@Clarity]

I've got out of the habit of having a "Company Xmas meal" and while I know guests may be invited, I'm not sure:

1. Is there a limit on guests per member of staff
2. Does the £150 exemption apply for each staff member or each person attending

It's been enough years that when I've done this before, the total bill for my wife and I wouldn't have exceeded £150 anyway I saw something about a larger company getting the total bill and dividing it by the number of people.

Simply put, it has to be an annual event and open to all employees. Once that's satisfied, guests are allowed. The limit is £150 per head in a tax year. If you go over that limit (even by 1p) it's all subject to BIK. The limit covers food, travel, accommodation etc. As far as whether it's entertaining or not depends on whether you're having a good time!

[hobnob]

https://www.google.com/search?q=chri...t=gws-wiz-serp

https://www.gov.uk/hmrc-internal-manuals/employment-income-manual/eim21690

The formatting went a bit wrong, and both links go to the search for this forum. Here's the actual link for EIM21690:
EIM21690 - Particular benefits: annual parties and other social functions - HMRC internal manual - GOV.UK

That page mentions "any members of their family and household who attend as guests."

So, I think you could have multiple guests per member of staff. E.g. a company could have a summer BBQ ("family fun day") where employees bring their partners and children along.

[sadkingbilly]

And all to save a pittance in tax.

[northernladuk]

So, I think you could have multiple guests per member of staff. E.g. a company could have a summer BBQ ("family fun day") where employees bring their partners and children along.

You could be right but it's really getting in to a grey area. As I mentioned above the primary reason has to be to entertain employees. If your summer BBQ has you, the wife and either other people it's going to be difficult to justify.

Much better just to go for a few meals in the year for birthdays and whatever and not bother including guests which achieves the same end.