Reply to: Xmas Party...

[Little'Old Me]

It's not just ONE event it can be a number - as long as the annual spend does not exceed £150 per person [ that is employee and guests ].

I stand corrected.....

[Bluebird]

You are limited to one event up to the £150 per head per tax year. All staff on the payroll must be invited. (They don't have to attend, but do have to be invited)

This is because these events are seen as Staff Entertaining.

I have seen small additional events classed as "team building".... but you need a couple employees to be classed as team building instead of entertainment!

It's not just ONE event it can be a number - as long as the annual spend does not exceed £150 per person [ that is employee and guests ].

[Kess]

Nope, because the trip to the hotel isnt travel in connection with work so you shouldnt claim mileage. (Do you think permies get mileage for travelling to their 'party'?)

Of course not - but that doesn't necessarily mean it's against the rules if the company did offer to pay mileage. Looking at the HMRC rules it states "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." However I suspect the transport item is probably only intended to cover something like coach hire.

Anyway, as you said, best to avoid the issue altogether by ensuring all the money gets spent on the party!

[TykeMerc]

Nope, because the trip to the hotel isnt travel in connection with work so you shouldnt claim mileage. (Do you think permies get mileage for travelling to their 'party'?)

If you were to add the hotel travel cost on to the 'party' allowable expense taking you over the £150 limit then, that would mean the whole lot becomes taxable.

True, but you can always schedule a business "meeting" or even the company AGM at the venue prior to the entertainment. It doesn't take much imagination to make travel legitimately expensable.

[BolshieBastard]

I think you misunderstood - there's no double-claim. If two of us drove to a hotel that was a 100 mile round trip then in theory could we simply add the £40 "cost" of that transport (based on 40ppm) to the event total?

Nope, because the trip to the hotel isnt travel in connection with work so you shouldnt claim mileage. (Do you think permies get mileage for travelling to their 'party'?)

If you were to add the hotel travel cost on to the 'party' allowable expense taking you over the £150 limit then, that would mean the whole lot becomes taxable.

[Kess]

You wouldnt be able to claim 40ppm (assuming you're within the first 10k miles) AND, the cost of travel as part of the £150 since this would be a double claim.

I think you misunderstood - there's no double-claim. If two of us drove to a hotel that was a 100 mile round trip then in theory could we simply add the £40 "cost" of that transport (based on 40ppm) to the event total?

[BolshieBastard]

Sorry, I know this "company event" topic keeps cropping up, but one aspect I haven't seen discussed is transport.

If the event is a weekend away at a spa, hotel etc., then can the transport costs of getting there and back also be claimed (so long as grand total per head remains < £150)? And if we drive then is it appropriate to use the normal 40p/mile business rate?

If you're going to take the transport costs as part of the £150, it doesnt leave a lot left for the 'entertainment,' does it?

Far better to pay that yourself.

You wouldnt be able to claim 40ppm (assuming you're within the first 10k miles) AND, the cost of travel as part of the £150 since this would be a double claim.

[Kess]

Sorry, I know this "company event" topic keeps cropping up, but one aspect I haven't seen discussed is transport.

If the event is a weekend away at a spa, hotel etc., then can the transport costs of getting there and back also be claimed (so long as grand total per head remains < £150)? And if we drive then is it appropriate to use the normal 40p/mile business rate?

[Little'Old Me]

but this is marvelous, I had no idea. Would you just need to keep receipts and thats it? So I could take my Employee(s) and family members away for a weekend on the company, call it something 'spring break spa weekend' whatever, and my ltd could pay? Planning it now

Yes, but be careful - spend £150.00 per person or less and you'll be OK, spend £150.01 and the whole thing becomes taxable......

[poppy01]

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!

but this is marvelous, I had no idea. Would you just need to keep receipts and thats it? So I could take my Employee(s) and family members away for a weekend on the company, call it something 'spring break spa weekend' whatever, and my ltd could pay? Planning it now

[Little'Old Me]

Yes it is...but the bash can be anytime of the year ... e.g. to celebrate the comapany birthday

And I don't think that you are limited to a single blow out either

You are limited to one event up to the £150 per head per tax year. All staff on the payroll must be invited. (They don't have to attend, but do have to be invited)

This is because these events are seen as Staff Entertaining.

I have seen small additional events classed as "team building".... but you need a couple employees to be classed as team building instead of entertainment!

[Billy Pilgrim]

isn't it a bit late for a xmas party ?

Yes it is...but the bash can be anytime of the year ... e.g. to celebrate the comapany birthday

And I don't think that you are limited to a single blow out either

[Andy2]

isn't it a bit late for a xmas party ?

[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!

[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