Cause for cheer on company parties
Newsletter issue – January 2024
Did you know that your business can benefit from a tax-free allowance if you host a celebratory event for your employees?
If not, you may have missed out for this year's Christmas party. Or if you're planning a late festive party in January, this may come at just the right time!
It's not just the yuletide event that attracts this benefit, however. So, if you're planning to throw staff a party, you can spend up to £150 each year per employee and not have to pay tax or national insurance on this.
However, it does need to be considered an 'annual event' - whether that is a summer celebration or perhaps you have a tradition of a late festive party in January. After all, it's good to have something to look forward to after the holidays end.
The other requirement to receive this allowance is that the party must be open to all employees. For those of you with a business operating at multiple sites, HMRC has this to say: "If your business has more than one location, an annual event that's open to all of your staff based at one location still counts as exempt. You can also put on separate parties for different departments, as long as all of your employees can attend one of them."
And the other good news is that it could even be an online party, rather than in-person. If you have any other questions on what to claim, give us a call.