Reply to: Company Xmas Party - Ltd co sole employee / director

[Martin at NixonWilliams]

Martin, you sound as if you feel cheapened and used.

[Clare@InTouch]

I had a discussion with my accountant last year who wouldn't accept this principle. Of course it's my decision, but are we sure?

Yes - it's per head not per employee. You can only claim the VAT on the portion that relates to staff, but the overall cost includes all staff and guests.

There is an exemption from tax, NICs and reporting if you provide a party or similar function for employees that meets the following three conditions:
it's an annual event, such as a Christmas party or summer barbeque
the event is open to all of your employees
the cost per head of the event isn't more than £150

HM Revenue & Customs: Social functions for employees, including annual parties


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. Divide the total cost of each function by the total number of people (including non-employees) who attend in order to arrive at the cost per head.

EIM21690 - Particular benefits: annual parties and other social functions

[Old Greg]

Make sure you take your partner to double the threshold to £300.

I had a discussion with my accountant last year who wouldn't accept this principle. Of course it's my decision, but are we sure?

[Old Greg]

He would actually do this!

Martin, you sound as if you feel cheapened and used.

[MPwannadecentincome]

Not any more....

http://forums.contractoruk.com/accou...ml#post1464394

LOL well I guess that covers the wildest idea then...

[GazCol]

Not any more....

http://forums.contractoruk.com/accou...ml#post1464394

Right, you're no longer my +1.

[northernladuk]

It's a secret.

Not any more....

http://forums.contractoruk.com/accou...ml#post1464394

[GazCol]

Care to tell us? Should we open a new thread for the wildest idea?

It's a secret.

[MPwannadecentincome]

Excellent, I know what this years Christmas Party allowance will now be splurged on!

Care to tell us? Should we open a new thread for the wildest idea?

[GazCol]

The Xmas party is like an 'anything goes' rule - just don't exceed the thresholds discussed in this thread, and the entire amount remains tax deductible for the company with no P11D costs on the employees.

Excellent, I know what this years Christmas Party allowance will now be splurged on!

[Greg@CapitalCity]

I didn't know corporate hospitality was an allowable expense, christmas party, or otherwise.

The Xmas party is like an 'anything goes' rule - just don't exceed the thresholds discussed in this thread, and the entire amount remains tax deductible for the company with no P11D costs on the employees.

[GazCol]

2 seats in the corporates for one of the christmas fixtures usually does for me.

I didn't know corporate hospitality was an allowable expense, christmas party, or otherwise.

[TheCyclingProgrammer]

Maybe you should. It has to be company expenditure, not expenses.

If you can get the supplier to accept that it's a business transaction and invoice YourCo then the payment card shouldn't technically matter as its then just treated as the employee paying something on the company's behalf and you can be reimbursed without any tax/NI/P11d implications but...

...yes, try and keep company expenditure on company cards wherever possible. It's just good common sense.

[Sausage Surprise]

2 seats in the corporates for one of the christmas fixtures usually does for me.

[mudskipper]

Maybe you should. It has to be company expenditure, not expenses.

Ah, good point. Already paid the hotel on my card.