Reply to: xmas party - expense

[deeter]

Sorry! Just double-checking everything in case I incur the wrath of HMRC...

[northernladuk]

Come on, just apply some common sense..

Blimey.. TCP getting hot under the collar

[TheCyclingProgrammer]

Sorry to necro a thread, but I've seen articles saying the christmas event's relief is ambiguous in the case of single-director companies, and I just wondered what people's thoughts were:

Business entertaining expenses - what can you claim? - FreeAgent


Contractors' Questions: Can my limited company fund a Christmas party?
-> this is kind of true if there are no other employees

Come on, just apply some common sense.

If YourCo only has it's directors and no other employees then by definition an event open to all directors is also an event open to all employees.

The rule in question applies where a company that has additional employees holds an event that is restricted to just the directors and excludes other employees.

Everything else in the first link is true regarding normal business entertaining expenses. The annual company event is an exception to this general rule.

[northernladuk]

Isn't this made clear in the posts above?

[deeter]

Sorry to necro a thread, but I've seen articles saying the christmas event's relief is ambiguous in the case of single-director companies, and I just wondered what people's thoughts were:

Business entertaining expenses - what can you claim? - FreeAgent

If your business has one or more directors, but no other employees, then the issue becomes more difficult.

HMRC say that the cost of providing entertainment only to directors or partners doesn't qualify for tax relief or a VAT deduction.

But they also say that if the directors or partners are travelling "away from their normal place of work on a business trip", then any VAT suffered on the cost of travel, accommodation and meals can be reclaimed. The rules for tax relief would mirror this, and this also applies to employees, sole traders, partners, and to subcontractors who are part of the team and treated like employees.

Contractors' Questions: Can my limited company fund a Christmas party?

Note also that the event must be open to everyone in your workforce and cannot be a “director only” event;

-> this is kind of true if there are no other employees

[LondonManc]

For a Director and Co Sec (husband/wife) isn't it £150 per head, so annual bill can come up to £300?

Your question was answered earlier in the thread

[ContractorBanking]

For a Director and Co Sec (husband/wife) isn't it £150 per head, so annual bill can come up to £300?

[Contreras]

Hi, im new to contracting and finding my feet.

quick question, if i wanted to have a xmas meal with partner (less than £150) i have read i can claim x amount back, do i just get the VAT back? (im registered for FRS) or the whole value?

do/can i use the company bank card? or personal and expense it?

thanks in advance

No. Hector will not stump up the cost of your meal.

Your company incurs an expense. This reduces the company's profit overall. Less profit means less tax owed.

[LondonManc]

And people complain about me telling OP's to go ask their accountant

It could be worse, you could be telling them to ask Lance.

[Lance]

It would not be business entertainment. OP is not entertaining clients. Their employer is paying for an annual event (Christmas party/meal) for its employee and one guest. It would qualify for a CT deduction so long as its within the limits.

quite right. My bad. I got confused as I took a client on my staff party earlier in the year.

[northernladuk]

quite right. My bad.

And people complain about me telling OP's to go ask their accountant

[Lance]

It would not be business entertainment. OP is not entertaining clients. Their employer is paying for an annual event (Christmas party/meal) for its employee and one guest. It would qualify for a CT deduction so long as its within the limits.

quite right. My bad.

[northernladuk]

Should the threads you find using the search not answer all your questions there is always you accountant you can ask.

[northernladuk]

Please think about using the search function to look for commonly asked questions. As you can imagine this is done to death every year.

The best method of searching the forums can be found in this link.

http://forums.contractoruk.com/welco...uk-forums.html

Thanks

[TheCyclingProgrammer]

The company counts it as business entertainment so no further relief.

It would not be business entertainment. OP is not entertaining clients. Their employer is paying for an annual event (Christmas party/meal) for its employee and one guest. It would qualify for a CT deduction so long as its within the limits.