Ensuring your staff party is tax free

 

 

 

A staff party or an annual function qualifies as a tax-free benefit for your employees providing that you meet the following conditions:

  • The total cost must not exceed £150 per head, per year.
  • £150 includes VAT together with any extra costs such as transport and accommodation.
  • The £150 is a limit and not an allowance: if the cost is £151, the whole benefit is taxable.
  • The event must be primarily for entertaining staff.
  • The event must be open to all staff (in that location, if you have several branches or departments).
  • The event is not just to be for directors, unless all your staff are directors.
  • The cost of the whole event is an allowable expense for your business.
  • You can claim back input VAT but this may be restricted where you are also entertaining customers.

Contact Details

Address:

11a Faraday Court First Avenue Centrum 100 Burton on Trent Staffordshire DE14 2WX

Phone:

01283 537108

Email:

info@clarkson-accountancy.co.uk

Fax:

01283 537523

Mobile:

07811 334406