Company Xmas Party

[THEPUMA]

Thats a fair point but how many large companies who hold christmas events invite their clients. I thought the point was to reward the employees in small way rather than to enhance the business.

The point is that in these cases the employees are not usually also the shareholders of the business. The point of the party is to generate goodwill amongst the employees (or prevent the badwill that could arise if there was no party).

It is hard to imagine that if yourco didn't have a Christmas party that you would throw your toys out of the pram and refuse to do any work in January.

[THEPUMA]

Here's the HMRC link again.

If that was in response to me, this link refers only to benefits-in-kind, not corporation tax deductibility.

[TheFaQQer]

If that was in response to me, this link refers only to benefits-in-kind, not corporation tax deductibility.

It wasn't in response to anyone in particular - I guess it was in response to the original question about what was allowed.

From a BIK perspective, the document explains it.

[hugebrain]

a cunning plan?

Another question. Me and the company secretary could fly to Bora Bora and stay in one of those overwater bungalows. Then invite say 100 guests for a beach party and buy them each one beer.

As long as the total cost is < 150 per head and neither of us have a salary more than £8,500 the whole thing is tax deductible?

[THEPUMA]

Another question. Me and the company secretary could fly to Bora Bora and stay in one of those overwater bungalows. Then invite say 100 guests for a beach party and buy them each one beer.

As long as the total cost is < 150 per head and neither of us have a salary more than £8,500 the whole thing is tax deductible?

I think that would definitely work. 100% robust.

[TheFaQQer]

Another question. Me and the company secretary could fly to Bora Bora and stay in one of those overwater bungalows. Then invite say 100 guests for a beach party and buy them each one beer.

As long as the total cost is < 150 per head and neither of us have a salary more than £8,500 the whole thing is tax deductible?

My dispensation says yes!

[hugebrain]

My dispensation says yes!

Hey I don't make the rules. I just play by them.

It seems to fit within all the rules.

[Bluebird]

The point is that in these cases the employees are not usually also the shareholders of the business. The point of the party is to generate goodwill amongst the employees (or prevent the badwill that could arise if there was no party).

It is hard to imagine that if yourco didn't have a Christmas party that you would throw your toys out of the pram and refuse to do any work in January.

When I used to work for a large utility company - most of the employees were shareholders as well as employeees.

I know what you're trying to say, but where does the scenario of a 2 person company and a 1,000 person company differ when all employees are also shareholders ?

Can you point to the specific clause about non-deductability for CT please ?

[THEPUMA]

When I used to work for a large utility company - most of the employees were shareholders as well as employeees.

I know what you're trying to say, but where does the scenario of a 2 person company and a 1,000 person company differ when all employees are also shareholders ?

Possibly in the case of the 1,000 person company, Christmas parties are disallowed or possibly it is considered that morale still needs to be upheld because each employee doesn't benefit quite so directly from the profit he generates.

Can you point to the specific clause about non-deductability for CT please ?

ICTA88/S74 (1)(a)

[chef]

so has anyone booked a christmas party for "staff" and guests?