I don't trust accountants to answer things like this properly, they usually give the most cautious answer when they don't know.
What I've done in the past when I have a query like this is call HMRC and ask them the answer. And then make sure I get the call reference number as the answer is logged. Over the years I've found HMRC to be fast and responsive, with a clear and unambiguous audit trail for if someone decides later that they don't it; unfortunately their staffing issues mean they have been getting a bit slower in the last couple of years.
I'm far too tight to pay for an accountant.
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Reply to: xmas party CUK article incorrect?
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Previously on "xmas party CUK article incorrect?"
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Originally posted by eek View PostVisiting accountingweb it’s remarkable how different the answers look depending on the viewpoints of people
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Visiting accountingweb it’s remarkable how different the answers look depending on the viewpoints of people
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Originally posted by Lance View PostYou can’t claim it as an expense. It’s after CT and you can’t have the VaT back either.
A staff annual event is an allowable expense for corporation tax purposes and the VAT is recoverable (even if it exceeds the per head BIK limit).Last edited by TheCyclingProgrammer; 6 December 2017, 17:51.
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Originally posted by PerfectStorm View PostThe actual legislation makes light reference to attendees who aren't employees, and doesn't say they can't have their own £150 allowance - therefore resulting, I think, in the accountants assumption that they can.
Income Tax (Earnings and Pensions) Act 2003 (note the £75 figure shown was amended in later legislation to £150)
So I'd say it's £150 per head. Although I don't think you're really saving money at all if you go out looking for restaurants where you can pay that much
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Originally posted by SouthernHarrier View PostLike it - then I get a free day out and save on the corp. tax bill
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Originally posted by MrMarkyMark View PostWhy don't you throw the invitation open to any friends and family too.
If you invite enough, maybe the company would actually make a loss that year.
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Originally posted by SouthernHarrier View PostIn our case our annual event is a Motorsports event in the summer. Both my wife and I are directors so budget is max £300. Our two boys always come so in theory could we count them as guests (one per director) and so increase the allowable budget to £600?
If you invite enough, maybe the company would actually make a loss that year.
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Originally posted by SouthernHarrier View PostJust wondering whether next year we can go to the poo bar instead of taking my own butties
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Never though of asking my accountant on financial issues. Why didn’t someone say?
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Originally posted by BrilloPad View PostEnough to afford an accountant?
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Originally posted by PerfectStorm View PostWill they be laying on a conference room?
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Originally posted by TheCyclingProgrammer View PostYes.
Edit: or more precisely, yes the total cost per head would mean max £600 for 4 people, obviously, but there's no guarantee HMRC would consider a family day out to a motorsports event in the middle of Summer a company annual event. Do you do this on an annual recurring basis?
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