Company Xmas Party

[r0bly0ns]

Based on that, Bluebird invited 2 too many guests as he has 2 employees's and 4 guests (ration of 2 guests to 1 employee).

I've read the quoted HMRC page (above) several times and I don't see anywhere where it says only 1 guest per employee.

Have I missed it or is it defined elsewhere?

my point was that if you dont earn £8.5k a year then she doesnt qualify for the £150 employed allowance.....

as for the number of guests - I havent got a clue how many you can invite...?

I take it back, there appears to be no limit to the amount of guests, I always thought it was one guest per employee

[r0bly0ns]

my point was that if you dont earn £8.5k a year then she doesnt qualify for the £150 employed allowance.....

I thought the earnings limit of 8.5k a year was only used when calculating benefit in kind if the 150 per head is breached.....


Edit: Can anyone find a link for this on HMRC website? I've hada brief look but can't see anything


Edit 2:
Found it:

As long as you stay below 150 per head per year then you're fine

http://www.hmrc.gov.uk/employers-bul.../empbull15.htm

"If the cost per head exceeds £150, for a director or employee earning £8,500 a year or more the cost of the party for both the employee and their partner is subject to tax and Class 1A NICs. You would need to show it on the form P11D for the employee at section N."

[gadgetman]

Cool, should be able to have a nice "event" with wife and 2 kids for under £600.

I take it back, there appears to be no limit to the amount of guests, I always thought it was one guest per employee

[Bluebird]

So I invite the Director (me) and the company secretary (unpaid person) and 2 guests and we are allowed to spend £600 on the bash?

It's £150 per head - doesn't matter whether that head is an employee nor not - so in the case above it's £300 [ 2 heads ].

That depends on of the company secratery is an employee or not.

If they are not, then you are the employee and they are the guest and you can spend £300

If they are then you can each invite a guest and have £600 to spend.

No it's the number of heads - doesn't matter whether they are employees or not.

Based on that, Bluebird invited 2 too many guests as he has 2 employees's and 4 guests (ration of 2 guests to 1 employee).

No, HMRC don't say how many guests you can have - think like a business - a lot of companies will invite lots of their clients and their clients wives - so there is no limit.

The only other criteria you have to meet is you have to "invite" all your employee's - which for contractors is ok as there are only usually one or two.

[Bluebird]

Cool, should be able to have a nice "event" with wife and 2 kids for under £600.

and don't forget if you can do it for £400 - you've only used up £100 of your £150 per head limit so you can still have another event.

The only other thing that I did - not sure whether I needed to or not but it made sense - was to minute the event and authorise it in the monthly directors minutes.

[TheFaQQer]

and don't forget if you can do it for £400 - you've only used up £100 of your £150 per head limit so you can still have another event.

The only other thing that I did - not sure whether I needed to or not but it made sense - was to minute the event and authorise it in the monthly directors minutes.

If you go over the £150 a head, though, the whole thing becomes a BIK, not the difference.

[gadgetman]

I am assuming that you could just claim for part of the expenses associated with a company "event" ?

e.g. say you book an overnight stay in London comprising (separately paid for) train and taxi travel, hotel, theatre, meals, drinks. If it took you over £150 per head then is there anything to stop you claiming for just the hotel, meals and drinks and omitting the rest?

This obviously wouldn't work if you booked a complete "package" but otherwise how would Hector know any different?

If you go over the £150 a head, though, the whole thing becomes a BIK, not the difference.

[TheFaQQer]

I am assuming that you could just claim for part of the expenses associated with a company "event" ?

e.g. say you book an overnight stay in London comprising (separately paid for) train and taxi travel, hotel, theatre, meals, drinks. If it took you over £150 per head then is there anything to stop you claiming for just the hotel, meals and drinks and omitting the rest?

This obviously wouldn't work if you booked a complete "package" but otherwise how would Hector know any different?

I guess that they could make a reasonable assumption that you incurred more. Otherwise, people would have a party in Barbados and only claim £150 for a couple of nights there.

There was a post earlier this year about it all, where it was asked whether you could claim a big night out while on holiday as your annual party. The general consensus was that it wasn't OK, since it would be obvious that you were there on holiday and decided to put a night out through the company.

I don't know whether Hector would "know" - does he have to know, or is it enough to suspect before it is disallowed?

[r0bly0ns]

My last permie employer used to have a night and party in a hotel in Scarborough as the Christmas do.

The company paid for the hotel and party but it was made clear to all employees that they made their own way there.



For our Christmas party this year we are doing simmilar, the company is paying for an event and it is up to each atendee to make their own way there.

[gadgetman]

Obviously I'm assuming any claims would be sensible, as per my example.

I don't think you could make any further assumptions based on a claim for hotel and meal.

I too have been on permie do's (as a contractor actually) where travel was not included.

I guess that they could make a reasonable assumption that you incurred more.