Reply to: Annual Party

[eek]

But it clearly states this has to be an organised event for a particular purpose. 4 or 5 outings is going to attract attention and technically wouldn't be claimable.

To be honest I really can't see organising anything is worth the hassle. Why save £30 a person in tax for a potential world of pain.

[aoxomoxoa]

Mrs A was quite enthusiastic about the idea of an annual meal out courtesy of my Limited Co. I explained that there needs to be a business purpose and maybe I'd prepare a PPT deck on company performance that we could look at before we order. At which point she suggested in that case we'll just stay in and have egg on toast!

[northernladuk]

While I agree about the mobile phone anology, this could be different. Most of us eat out once in a while so a two person LTD can easily spend £300 over a year on say 4 or 5 outings. Just hold on to the receipts and claim them as a quarterly event from the LTD..

But it clearly states this has to be an organised event for a particular purpose. 4 or 5 outings is going to attract attention and technically wouldn't be claimable.

[Master]

Ive got to wonder about the sense of spending £300 to claim £60 back in tax. Must be the same sort of people who spend £50 a month on a mobile contract to save a tenner. Ok if you would have done it anyway (but still peanuts in the scheme of things), but otherwise....

While I agree about the mobile phone anology, this could be different. Most of us eat out once in a while so a two person LTD can easily spend £300 over a year on say 4 or 5 outings. Just hold on to the receipts and claim them as a quarterly event from the LTD..

[escapeUK]

Ive got to wonder about the sense of spending £300 to claim £60 back in tax. Must be the same sort of people who spend £50 a month on a mobile contract to save a tenner. Ok if you would have done it anyway (but still peanuts in the scheme of things), but otherwise....

[BolshieBastard]

Wouldn't is actually be that if the total bill came to £300.01, that would average at over £150 a head, so neither employee / director can claim it?

Yes, of course. If the director and guest (for whatever reason), one has a bill of £150.01 and the other £150.00, then the total is 1p over the threshold.

But you're wrong, they can claim it but tax is due on the whole amount.

I thought that was pretty obvious?

[administrator]

Sorry, just checked the article and it does look wrong to me. Guest is definitely allowed per employee / director as I do the same. Will correct it now and sack the contributor...

[TheFaQQer]

If either person's bill comes to £150.01, it's taxable.

Wouldn't is actually be that if the total bill came to £300.01, that would average at over £150 a head, so neither employee / director can claim it?

[TheFaQQer]

Er, nope!

Each director is allowed 1 guest and each person attending is entitled to the £150 'limit \ allowance.'

So 1 director can take 1 guest to the 'office party' and the bill upto £150 each ie £300 the pair, can be put as a company expense.

If either person's bill comes to £150.01, it's taxable.

Where does HMRC specify that you are limited to 1 guest? Apart from the note at the bottom of the HMRC page that Craig linked to, I couldn't see anything about guests, either in EIM21690 or EIM21691.

Looks like a fun read of ITEPA section 264 ahead...

[northernladuk]

Thanks for the responses everyone.

As I understood it each employee could bring along a guest and each attendee could claim £150. So I could claim up to £300 in total - £150 for my fiancee + £150 for me.

And the fact that there are no additional employees does not seem to matter, which answers my original query.

In hindsight may have done this around Xmas time, but the date of the event aligns with the company's date of incorporation and is something I intend to do annually.

Again, many thanks everyone.

You could have a little do at incorporation date and another nearer xmas. Doesn't have to be a single event...

Sorry about the confusion, mislead by that link which has now been confirmed to be incorrect

[crp]

Thanks for the responses everyone.

As I understood it each employee could bring along a guest and each attendee could claim £150. So I could claim up to £300 in total - £150 for my fiancee + £150 for me.

And the fact that there are no additional employees does not seem to matter, which answers my original query.

In hindsight may have done this around Xmas time, but the date of the event aligns with the company's date of incorporation and is something I intend to do annually.

Again, many thanks everyone.

[northernladuk]

Never claimed this. Unfortunately the director of myCo has a particularly unsociable partner, so she'd be partying alone. However, I'd always understood it to be £150 for each person attending the party.

You could have an annual spa day event instead?

[mudskipper]

Bah, never using that piece of crap website again. Wonder if I can sue them based on my loses incurred against incorrect information.

Never claimed this. Unfortunately the director of myCo has a particularly unsociable partner, so she'd be partying alone. However, I'd always understood it to be £150 for each person attending the party.

[BolshieBastard]

The OP's comment is not correct and is not clarrified properly by NW's response. You cannot claim for your wife. It is £150 per head of director or employee. If your wife is an employee then she can claim £150 making it £300 in total, if she isn't it is just £150

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

Er, nope!

Each director is allowed 1 guest and each person attending is entitled to the £150 'limit \ allowance.'

So 1 director can take 1 guest to the 'office party' and the bill upto £150 each ie £300 the pair, can be put as a company expense.

If either person's bill comes to £150.01, it's taxable.

[northernladuk]

I've just read over the article and it looks like it is incorrect...looks like that page needs updating!

Craig

Bah, never using that piece of crap website again. Wonder if I can sue them based on my loses incurred against incorrect information.