| Are you planning a party
for your employees? The good news is that,
unlike entertaining customers, the costs
of entertaining employees are generally
allowable against the profits of the
business. But what is the tax treatment
for the employees themselves? Is it a perk
of their jobs and will they have to pay
tax on a benefit?
Generally, as long as the total costs
of employee annual functions in a tax year
are less than £150 per attendee (VAT
inclusive) there will be no tax
implications for the employees themselves.
In considering this limit make sure you
have included all the costs, which may
include not only the meal itself but also
any drinks, transport and accommodation
that you provide.
If the costs are above the £150 limit
then do get in touch so we can advise you
how best to deal with them.
Internet link:
HMRC guidance |
