Reply to: Christmas party £150

[TheCyclingProgrammer]

After some discussion my accountant agreed that me, my wife (director & shareholder but not salaried) and our child are fine so we had £450 to spend on a weekend away.

Seems reasonable as technically it’s still only one guest.

[Lance]

There’s guidance on the HMRC website that makes it explicitly clear that the per head cost includes all guests.

That said it still has to be primarily an event for employees so I don’t think as a one person company you can get away with inviting more than one guest to be honest.

After some discussion my accountant agreed that me, my wife (director & shareholder but not salaried) and our child are fine so we had £450 to spend on a weekend away.

[Dom at Fox Bartfield]

Christmas Party

Agreed. I usually advise to keep it to yourself and perhaps one other. We can all be generous over Christmas but I've yet to come across a one person company throw a party for a big group.

True, doesn't happen often but had clients that have invited their accountant!

[Craig@Clarity]

There’s guidance on the HMRC website that makes it explicitly clear that the per head cost includes all guests.

That said it still has to be primarily an event for employees so I don’t think as a one person company you can get away with inviting more than one guest to be honest.

Agreed. I usually advise to keep it to yourself and perhaps one other. We can all be generous over Christmas but I've yet to come across a one person company throw a party for a big group.

[Craig@Clarity]

Yeah I double check everything my accountant tells me which is why I came here asking the question.. Will be switching away from this accountant once the holiday season is over. I pay £150 which is on the high end so I expected a decent service.. obviously that's not the case.

[TheCyclingProgrammer]

Funny that, my accountant said that it's only for employees.

There’s guidance on the HMRC website that makes it explicitly clear that the per head cost includes all guests.

That said it still has to be primarily an event for employees so I don’t think as a one person company you can get away with inviting more than one guest to be honest.

[cannon999]

This. A quick Google gets 100s of articles explaining it and a search on here find double that. Not one of them gives the advice your accountant gives.

Yeah I double check everything my accountant tells me which is why I came here asking the question.. Will be switching away from this accountant once the holiday season is over. I pay £150 which is on the high end so I expected a decent service.. obviously that's not the case.

[northernladuk]

Re-read my first comment on this thread.

Please let me know who your accountant is. So I can avoid them when I move.

This. A quick Google gets 100s of articles explaining it and a search on here find double that. Not one of them gives the advice your accountant gives.

[MrButton]

Christmas party £150

Yep

Re-read my first comment on this thread.

Please let me know who your accountant is. So I can avoid them when I move.

[cannon999]

This is the same accountant that says you can claim £150 without a receipt?

Yep

[mudskipper]

Funny that, my accountant said that it's only for employees.

This is the same accountant that says you can claim £150 without a receipt?

[cannon999]

Nope. It's still per head and extends to guests too other than staff

Funny that, my accountant said that it's only for employees.

[Craig@Clarity]

I believe the 150 is applicable to employees only and does not extend to family/friends etc.

Nope. It's still per head and extends to guests too other than staff

[cannon999]

Provided that it's an Annual Event such as a summer BBQ or Christmas Party (being the obvious ones) and it's open to all employees, you can expense up to £150 (inclusive of VAT) per head per tax year. You should claim for the actual spend which is receipted. As Mudskipper said, if you go over this limit then the whole amount is subject to a benefit in kind charge (BIK). Don't claim for round sum cash amounts. Claim for what you spend which could include travel and accommodation to the event. So, assuming you're the only employee and you decided to invite your partner, then you can claim up to £300 for the annual event.

In terms of a student loan, in broad terms, you'll pay back 9% of the amount you earn over a certain threshold on your self assessment tax return (assuming your salary is kept below the threshold amount currently at £1,527). So if your total income is over £18,330 on your tax return, the student loan repayment will be calculated at the same time on your tax return; you'll pay the personal tax in the usual way to HMRC and they will in turn pass it on to the student loan company.

I believe the 150 is applicable to employees only and does not extend to family/friends etc.

[Craig@Clarity]

Provided that it's an Annual Event such as a summer BBQ or Christmas Party (being the obvious ones) and it's open to all employees, you can expense up to £150 (inclusive of VAT) per head per tax year. You should claim for the actual spend which is receipted. As Mudskipper said, if you go over this limit then the whole amount is subject to a benefit in kind charge (BIK). Don't claim for round sum cash amounts. Claim for what you spend which could include travel and accommodation to the event. So, assuming you're the only employee and you decided to invite your partner, then you can claim up to £300 for the annual event.

In terms of a student loan, in broad terms, you'll pay back 9% of the amount you earn over a certain threshold on your self assessment tax return (assuming your salary is kept below the threshold amount currently at £1,527). So if your total income is over £18,330 on your tax return, the student loan repayment will be calculated at the same time on your tax return; you'll pay the personal tax in the usual way to HMRC and they will in turn pass it on to the student loan company.