24 Nov The Account Down to Christmas
The Account Down to Christmas
With a month ’til Christmas and the festive season upon us, a lot of clients are asking us ‘how much can I spend on a festive party?’. The answer is simple – you can spend up to £150 per employee plus £150 per guest on a festive night out.
Are there any catches? Not really, but stick to the rules and make sure it is documented for your accounts.
To avoid any problems with HMRC, make sure you invite all staff in writing and keep copies along with invoices just in case HMRC knock on door.
No other staff for a party? If you have no employees and are the sole director you can still have a Christmas party!
You can treat your partner to a meal and maybe even a hotel afterwards – you have up to £300 to spend after all.
You don’t have to tell the other half and use this as a bonus Christmas treat, we won’t tell.
The party budget can be spent on travel, food, drink, entertainment and accommodation (hair, makeup etc aren’t included).
You don’t have to have the party/meal at Christmas, it just needs to be an annual event where all staff are invited. The most important thing is to make sure it is documented, otherwise it’ll be open to questions by HMRC.
Another golden rule is don’t call your boss tight if you get under £150. Remember this is the maximum allowed by HMRC and this money will come out of your boss’s dividend fund!