Xmas Party...

[Billy Pilgrim]

...wel you know what I mean...

Thinking of doing something for my employees (ME!!) and their other halves (her) in the next month or so...hotel in London, show, restaurant...been through the blurb on the HMRC website and was a bit confused by the following statement...


* the total cost of the events for the tax year is no more than £150 per person


So...question...

What is the 'tax year' in question ... personal tax year (6th - 5th April) or company tax year.

Cheers

[TheFaQQer]

IIRC, it's company tax year, since it would be a company expense.

[Billy Pilgrim]

IIRC, it's company tax year, since it would be a company expense.

Sounds about right....may have to put it of till June then !!

Cheers

[deckster]

* the total cost of the events for the tax year is no more than £150 per person

Employee

You can't take your wife and claim £300, but then you probably knew that anyway

[Pickle2]

Employee

You can't take your wife and claim £300, but then you probably knew that anyway

We seem to have this discussion every few months! I thought last time settled on 150 for each employee and a max of one guest. So you + wife as guest = 300 quid. If wife is on the books then you plus wife + 2 guests = 600 quid.

Bah.

[TheFaQQer]

We seem to have this discussion every few months! I thought last time settled on 150 for each employee and a max of one guest. So you + wife as guest = 300 quid. If wife is on the books then you plus wife + 2 guests = 600 quid.

Bah.

Indeed we do, but since when has that stopped us having a discussion / argument on CUK!

I agree with you though - £150 per employee, each person can bring one guest.

If you go over the £150 a head, then the whole lot is taxable, not just that bit over the £150.

[deckster]

Well bugger me, it's not just me that's wrong this time. It's £150 per head, and not just one guest per employee:

The figure of £150 is not an allowance. For functions that are outside the scope of the exemption (see example at EIM21691) directors and employees, except those in an excluded employment, are chargeable on the full cost per head, not just the excess over £150, in respect of:

* themselves and
* any members of their family and household who attend as guests.

The cost of the function includes VAT and the cost of transport and/or overnight accommodation if these are provided to enable employees to attend. Divide the total cost of each function by the total number of people ( including non-employees) who attend in order to arrive at the cost per head.

(their bold)

So as long as they're part of your 'family and household' then you can take as many people as you like and spend up to £150 each. Marvellous. Although, as has been said, you can't spend £301 and claim £300.

[Little'Old Me]

IIRC, it's company tax year, since it would be a company expense.

Actually no it not - Its comes under BIK exemptions - so it Payroll year (06 April to 05 April)

Also it needs to be a regular event rather than a one off.

[Billy Pilgrim]

Employee

You can't take your wife and claim £300, but then you probably knew that anyway

Cut and paste straight from HMRC site that one

[Little'Old Me]

Sorry but can I bore you on how this came about?

A company decided to take their employees off for a Spa weekend each year instead of holding a Christmas Party. The HMRC disallowed it on the grounds that there was no music and could not be considered a Party and therefore it was a BIK, taxable to the employees.

It went to appeal and the commissioners, confirmed - one annual event each year is allowable, in what form is not relevant - just the amount spent on the event must not be over £150 per person including guests! Up to that point, no-one knew that guests were allowed!