Planning to treat your staff this Christmas?
Here’s all the need to knows about tax
There is a £150 limit per member of staff which is tax deductible.
This £150 limit is an exemption and not an allowance, which means if the overall cost of the party amounts to £151 per head, the whole amount will be taxable as a benefit in kind (not simply the £1 excess)
The limit applies to the entire tax year, not to individual events. Therefore, employers need to ensure the combined cost of all events is less than £150 per head
The function or party must be open to all employees.
The exemption is only available for annual events, such as a Christmas party
The £150 limit can also include a spouse or partner, so if a business wants to be even more generous, then the overall limit is effectively doubled