Tis the season to be jolly – tax free!
When someone mentions Santa and the season of goodwill, Her Majesty’s Revenue and Customs doesn’t naturally spring to mind. Just to prove us wrong however, every year HMRC allows businesses to spend up to £150 per employee on entertainment, completely tax free.
Whether your business is large or small, this allowance means the festive fun can be ‘on HMRC’. As well as food and drinks, the £150 can include accommodation and transport. It can even include the partners or spouses of your employees providing the cost is kept under £150 per head.
Of course, there’s nothing to say your party has to be at Christmas. The allowance applies to each tax year so if you prefer a summer barbeque you can use it then, or even on multiple events if you keep under the £150 ceiling.
HMRC’s goodwill has its limits though and if you go over the £150 cap, the full cost of the party is liable for Income Tax and National Insurance.
Our advice this festive season is take advantage of HMRC’s generosity, throw your teams a fabulous Christmas party, don’t mention the tax allowance and take all the credit!
We are still accountants after all!
At Lewis & Co we have been helping businesses, individuals and families minimise their tax liability and increase their wealth for decades. So if you would like to talk to us, please contact 01892 513515 or email email@example.com or read our Client Testimonials to find out how we’ve helped others https://www.lewisandco.biz/testimonials/