And presumably, the £150 per head social event allowance is available too? A decent £900 of tax free benefits for a pair of company directors.
- Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
- Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!
Trivial Benefits
Collapse
X
-
Public Service Posting by the BBC - Bloggs Bulls**t Corp.
Officially CUK certified - Thick as f**k. -
Get yourself a gift voucher for your usual supermarket, use it do your weekly shop and pocket the cash equivalent.Comment
-
Originally posted by Old Greg View PostGet yourself a gift voucher for your usual supermarket, use it do your weekly shop and pocket the cash equivalent.Public Service Posting by the BBC - Bloggs Bulls**t Corp.
Officially CUK certified - Thick as f**k.Comment
-
Originally posted by Lance View PostWhat sort of thing can it consist of?
I presume amazon vouchers count as cash so not valid.
What about a £300 bar tab in my local?Comment
-
Originally posted by Fred Bloggs View PostAnd presumably, the £150 per head social event allowance is available too? A decent £900 of tax free benefits for a pair of company directors.
HMRC’s rules for annual function(s)
For your event to qualify for the tax exemption, it must be:
1. Annually recurring
The date when the event is held or the type of the event is irrelevant, as long as it’s annually recurring HMRC allow it to be claimable. If you decide to hold a one-off event for either just yourself or others (such as employees, family, etc), you must still account for the expenses, but they will not be treated by HMRC as tax allowable.
2. Available to employees in one location
If your Limited Company has employees in various locations, the event must be held in one central location, which is accessible for all. The event must be available for both directors and staff, or director’s guests (such as spouses or civil partners, and children of the directors and employees).
So in theory, as the director of your own Limited Company you could hold a Christmas party for your immediate family.
3. A maximum of £150 per person
For each person who attends the event an additional £150 per person is allowable. The £150 is an absolute maximum which HMRC strictly applies.
The £150 limit must include VAT, transport costs to and from the event, and the total cost of any overnight accommodation. These costs are then combined and divided between the number of attendees, to arrive at the cost per head.
Should the total amount per head exceed the £150 limit, the maximum exemption will not apply and the total amount will be taxed. HMRC are very strict about this allowance so if you’re unsure, speak to your Personal Accountant to ensure your calculations are correct.
What happens if you have more than one event per year?
Hosting company events isn’t just exclusive to the festive period, you are able to host events throughout the year. You could choose for example, to host a summer event and a Christmas event. So long as the total combined amount does not exceed £150 per head per tax year, the exemption will still apply.
Should any individual event cost exceed this limit, HMRC will only apply the exemption to expenses for the events that fell within the allowable limit.Comment
-
Originally posted by Ricky@IntouchAccounting View PostYou could potentially claim more from the social event (annual function).Public Service Posting by the BBC - Bloggs Bulls**t Corp.
Officially CUK certified - Thick as f**k.Comment
-
Originally posted by Fred Bloggs View PostIndeed, Mrs Bloggs and I have hosted our two children at our annual Christmas shin dig in years gone by.Comment
-
Originally posted by Fred Bloggs View PostIndeed, Mrs Bloggs and I have hosted our two children at our annual Christmas shin dig in years gone by.Comment
-
Originally posted by Ricky@IntouchAccounting View PostGood to hear you have been making use of that!'CUK forum personality of 2011 - Winner - Yes really!!!!Comment
-
Originally posted by northernladuk View PostAre you really? Really really?Public Service Posting by the BBC - Bloggs Bulls**t Corp.
Officially CUK certified - Thick as f**k.Comment
- Home
- News & Features
- First Timers
- IR35 / S660 / BN66
- Employee Benefit Trusts
- Agency Workers Regulations
- MSC Legislation
- Limited Companies
- Dividends
- Umbrella Company
- VAT / Flat Rate VAT
- Job News & Guides
- Money News & Guides
- Guide to Contracts
- Successful Contracting
- Contracting Overseas
- Contractor Calculators
- MVL
- Contractor Expenses
Advertisers
Contractor Services
CUK News
- Streamline Your Retirement with iSIPP: A Solution for Contractor Pensions Sep 1 09:13
- Making the most of pension lump sums: overview for contractors Sep 1 08:36
- Umbrella company tribunal cases are opening up; are your wages subject to unlawful deductions, too? Aug 31 08:38
- Contractors, relabelling 'labour' as 'services' to appear 'fully contracted out' won't dupe IR35 inspectors Aug 31 08:30
- How often does HMRC check tax returns? Aug 30 08:27
- Work-life balance as an IT contractor: 5 top tips from a tech recruiter Aug 30 08:20
- Autumn Statement 2023 tipped to prioritise mental health, in a boost for UK workplaces Aug 29 08:33
- Final reminder for contractors to respond to the umbrella consultation (closing today) Aug 29 08:09
- Top 5 most in demand cyber security contract roles Aug 25 08:38
- Changes to the right to request flexible working are incoming, but how will contractors be affected? Aug 24 08:25
Comment