Want to Claim Your Christmas Party as Business Expense?

December is here! So it is the time for office parties. Christmas parties are an amazing way of rewarding your employees for a year of hard work. Also, we all know that these types of parties give everyone in the organisation a chance to meet and greet their colleagues from different departments and teams. So, to make your party celebrations more fruitful, we bring you something that can help you save some expenses by accounting party expenses as a Business Expense.

Want to Claim Your Christmas Party as Business Expense? Know How!

Expenses to these parties will be exempt from tax and National Insurance if you adhere to certain guidelines that include:

  • The party must be an annual event, such as a Christmas / New Year / Summer party.
  • All employees in the organisation are invited to the party (not Shareholders).
  • The cost of all these parties combined must not exceed £150 (including VAT) per head.
  • All expenses, such as catering, venue booking, entertainment, decorations, etc. are included.

Additionally, you can also claim an additional £150 per person for a plus one for each employee, providing they are a family member or partner.

So go on and party hard! Keep above guidelines in mind to avail the tax-free allowance of £150 per head over a tax year for annual events such as a Christmas party. Be cautious to not cross the threshold otherwise it can cost you dear.

About the author
Blog Author

Sumit Agarwal
Sumit Agarwal (ACMA ACA India), the Managing partner of dns accountants is a highly respected accountant with expertise in helping owner-managed businesses.


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