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