Reply to: Christmas Company Meal -too late ?

[GillsMan]

I plan on claiming my Christmas party (myself as the sole employee, and a guest) as a tax deductable expense.

For a relatively innocuous reason I ended up paying for this in two seperate transactions to the following values:

£250.60 and £50.60 = Total £301.20

I understand that over the £300 mark (£150 per person) this becomes a benefit in kind and things get messy.

Could I get some guidance on whether I should look to claim for £250.60 (referencing just one receipt) or alternatively claim for the full £300, ignoring the £1.60?

My thinking is that option 1 the way to go and option 2 may not even be allowable but would welcome a second opinion.

If you're talking about tax deductable expenses than my understanding is:

It's per employee, and not per employee's guests. As your company is made up of one employee, you're allowed one lot of £150 to spend.

Furthermore, you can spend UP TO £150. As soon as you spend over that amount, then the full amount becomes non-tax deducatable. In otherwords, because you have two receipts, and one of those receipts of for way over the £150 threshold, the only thing you could claim on is the £50 receipt. Unlucky.

Unless my understanding is completely wrong, which is always a possibility.

[prozak]

I plan on claiming my Christmas party (myself as the sole employee, and a guest) as a tax deductable expense.

For a relatively innocuous reason I ended up paying for this in two seperate transactions to the following values:

£250.60 and £50.60 = Total £301.20

I understand that over the £300 mark (£150 per person) this becomes a benefit in kind and things get messy.

Could I get some guidance on whether I should look to claim for £250.60 (referencing just one receipt) or alternatively claim for the full £300, ignoring the £1.60?

My thinking is that option 1 the way to go and option 2 may not even be allowable but would welcome a second opinion.

Not sure. I'd be safe and do the 250.

VAT is not claimable for your guest though....

[northernladuk]

From what I read on here this doesn't just cover xmas. It can be any number of works events over the year but cannot exceed the amount in total for the whole year. If you claim last xmas do in this year up to the max you can't have another do in the next 12 months I guess.

[Joxer]

I plan on claiming my Christmas party (myself as the sole employee, and a guest) as a tax deductable expense.

For a relatively innocuous reason I ended up paying for this in two seperate transactions to the following values:

£250.60 and £50.60 = Total £301.20

I understand that over the £300 mark (£150 per person) this becomes a benefit in kind and things get messy.

Could I get some guidance on whether I should look to claim for £250.60 (referencing just one receipt) or alternatively claim for the full £300, ignoring the £1.60?

My thinking is that option 1 the way to go and option 2 may not even be allowable but would welcome a second opinion.

[northernladuk]

Observation -

Last edited by Robot : Today at 22:40. Reason: Made an observation - but decided to take it down, to many eyes reading.

Isn't eyes reading kinda the idea of a public forum???

[Robot]

No - if you are a director (but NOT an employee), then you aren't invited. It has to be an employee, and all employees have to be invited.

Observation -

[northernladuk]

It's been discussed before - "if I'm on holiday and we go out for a fancy meal, can I claim it as my Christmas party?"

If DS23 was seriously considering claiming for it while abroad (I don't recall who originally asked the question, and CBA to search for it), then he is potentially going to end up in trouble with the tax man for it.

Thing is the way I read it he wasn't being serious though lol.....

[TheFaQQer]

Ohh you can be so Bah Humbag FaQQer!!! chillax and smile for post or two

It's been discussed before - "if I'm on holiday and we go out for a fancy meal, can I claim it as my Christmas party?"

If DS23 was seriously considering claiming for it while abroad (I don't recall who originally asked the question, and CBA to search for it), then he is potentially going to end up in trouble with the tax man for it.

[northernladuk]

As long as you aren't claiming a meal while in Barbados, then you should be OK - I wouldn't want to try and claim it if it was away from home.

Ohh you can be so Bah Humbag FaQQer!!! chillax and smile for post or two

[TheFaQQer]

indeed. perhaps an annual bash at co's year-end would be in order then instead of an exmas "party". for me that will most likely be whilst on holiday in the summer. excellent idea. a most excellent idea.

As long as you aren't claiming a meal while in Barbados, then you should be OK - I wouldn't want to try and claim it if it was away from home.

[TheFaQQer]

Had a meal last week and I put mine through with January expenses with no questions raised by accountant, my understanding is that its a yearly allowance for employees (myself and co secretary ie;wife)and cannot be over the £150 a head

I am sure someone will be along in a moment to right my wrongs

Just because there are no questions raised by your accountant, that doesn't mean that it's correct, though

I'm not saying (s)he is right or wrong in this instance, but I'd be wary of just thinking "oh, the accountant says it's fine, therefore HMRC will agree with them"

[TheFaQQer]

Actually, isn't it £150 per person, where the maximum number of people allowed is equal to the total number of employees / directors plus a guest each?

Therefore, if you had two company directors, the total number of people allowed would be 4, making the total amount available equal to £600.

The only questionable decision would be whether you class a director as an employee?

No - if you are a director (but NOT an employee), then you aren't invited. It has to be an employee, and all employees have to be invited.

[Weltchy]

Actually, isn't it £150 per person, where the maximum number of people allowed is equal to the total number of employees / directors plus a guest each?

Therefore, if you had two company directors, the total number of people allowed would be 4, making the total amount available equal to £600.

The only questionable decision would be whether you class a director as an employee?

[vandiss]

Some blurb from my accountant's guidelines...

Entertaining and gifts

Staff entertaining is tax deductible up to £150 per year per employee. It is important to ensure that you do not exceed the limit as the whole amount then becomes taxable, not just the excess.

Client entertaining is not tax deductible.

Gifts to staff are tax deductible and do not create a benefit in kind to the employee provided that they are “trivial”. This would normally be a box of chocolates or a bottle of wine at Christmas.

Gifts to clients are generally not tax deductible unless the gift has a conspicuous advertisement, cost no more than £50 per person per year, and are not food, drink, tobacco or gift vouchers.

So no gifting yourself £150 in Amazon vouchers.

[Spacecadet]

Just invent a holiday like festivus