As said in my best Noddy Holder voice ... and yes, I am aware that probably means I am showing my age!
This is the Last Christmas blog and my last blog of the year ... no one wants to read the ramblings of an accountant over the holiday period and if you do then there are plenty of posts for you to have a look back on and revisit ... I could offer you a list of my favourite posts over the year but I will leave that pleasure to you! Some have definitely been more fun to write than others (the no deal Brexit posts definitely sit on the list of the boring ones …sorry!).
So it’s time to deck the halls with boughs of holly, and find the mistletoe and wine and make sure you are making the most of what the tax man will allow you to claim!!
If you are a limited company then provided it’s an annual event, is open to all employees and has a cost of no more than £150 per head (including VAT) then it is fully allowable against your corporation tax bill and there are no tax implications for your employees either ... but spend £151 and then the whole shebang is classed as a benefit in kind and the employees have to pay tax and NI!! You can also claim an additional £150 (including VAT) per person for the employees plus one ... they just need to be a family member / partner.
Just remember – it’s an exemption not an allowance and does cover the whole year.
HMRC also allows employers to give small tax free gifts (“trivial benefits”), these need to be £50 or less, not cash or cash equivalent (ie voucher), not be a reward for performance / work and not be part of their contract.
Sole trader …
Sorry – HMRC don’t think you need to celebrate or have a wonderful Christmas time and there aren’t any allowances for you! Bah-humbug!
Lastly ... Have a wonderful Christmas and New Year and the next blog will be on Wednesday 9th January!