Christmas party expenses

[RichardCranium]

as always when this question crops up, some accountants say it is allowable and some say its not.

This is the sort of thing that gets right on my tits.

ClientCo has piss-ups, every wine bar, pub, club and hotel is booked up by corporates, but us LittleCos get creamed for the tax on a steak and chips.

Bastards.

[TheFaQQer]

Re Richard Cranium's general queries, I agree with TheFaQQer except for:


If the Missus isn't an employee, you can spend £150 in total, not each. If she is an employee, you can probably get away with £150 each.


I'd recommend not inviting them as they make the argument of "staff party" very weak when only 1/4 of the people there are staff.

If you must, I'd disallow the proportion relating to your mate and his Missus, again assuming they are not employees.

I concur - I didn't cover the eventuality that Mrs Cranium is not an employee.

Additionally, there is a debate about whether if your Mrs is company secretary, are they also an employee for the purposes of events like this.

[TheFaQQer]

'probably'? The Missus is on the payroll but I don't fancy splashing out on a meal and then getting taxed on it later.

If she is on the payroll then I think you would be fine with £150 each.

[swamp]

I concur - I didn't cover the eventuality that Mrs Cranium is not an employee.

Additionally, there is a debate about whether if your Mrs is company secretary, are they also an employee for the purposes of events like this.

Bugger. Swampette isn't an employee (or secretary, or director). UKP150 between us will barely buy the breadsticks.

[mudskipper]

Table for one please...

[Maslins]

'probably'? The Missus is on the payroll but I don't fancy splashing out on a meal and then getting taxed on it later.

If she's on the payroll then I guess based on the links in this thread it would seem ok. I say "probably" because HMRC are unlikely to believe husband & wife going out for dinner is wholly and exclusively for the benefit of the trade.

You remind me of my accountant. He's a cautious, miserable bugger who talks me out of claiming stuff that I used to claim. "Well, you never know, they might not like it. Best not to claim it." It's like having Hector as your accountant, FFS.

Not miserable, am cautious. If I tell you you can claim it, and HMRC enquire & decide you can't, you'll blame me.

Accountants do tend to air on the side of caution because of the above. As long as you're not being audited, then you're perfectly within your rights to say "sod it, I'll ignore you and claim it anyway". Provided what you're doing isn't money laundering, your accountant should follow your wishes...but they'll probably put in writing that they disagree to protect themselves against negligence claims, which is understandable.

[RichardCranium]

I say "probably" because HMRC are unlikely to believe husband & wife going out for dinner is wholly and exclusively for the benefit of the trade. Not miserable, am cautious.

<sigh>

So your conclusion would be that it is not claimable in the case of a husband / wife contractor setup.

Super.

And a Merry humbug to IT contractors.

[blacjac]

Re Richard Cranium's general queries, I agree with TheFaQQer except for:


If the Missus isn't an employee, you can spend £150 in total, not each. If she is an employee, you can probably get away with £150 each.

Sorry Maslins but I think you are wrong on this one... see the earlier link to HMRC on this thread.....

If the employer provides one annual function for employees no charge to tax arises if the cost of the event per head does not exceed £150
.
.
.
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.

http://www.hmrc.gov.uk/manuals/eimanual/EIM21690.htm



Edit:
Why is it that whenever we get a new accontant on here the contractors always ending up giving them more advice then they give us?

[TheFaQQer]

<sigh>

So your conclusion would be that it is not claimable in the case of a husband / wife contractor setup.

Super.

And a Merry humbug to IT contractors.

I have never claimed it - purely because I never remember to do it.

I would claim it, and I would be prepared to argue it with HMRC if the situation arose.

[rootsnall]

Spend however much you like and then make up a fake mileage claim to cover it