What counts as a social function

[Clare@InTouch]

So Clare, is this advice tax avoidance or tax evasion?

Claiming something according to HMRC guidance? I'd say that's tax avoidance, which is perfectly legal.

[Old Greg]

Look, NLUK, I found an existing thread and reopened it rather than starting a new one.

I always thought it was £150 per employee but apparently not, it's £150 per head. So If I bring Mrs OG (which I will) and YG1 and YG2 (which I could in theory) could I have a £600 party.

Mind you, that's going to be a hell of a lot of coffee at the indoor soft play, but in theory?

[northernladuk]

Look, NLUK, I found an existing thread and reopened it rather than starting a new one.

The force is strong with you young padawan.

I always thought it was £150 per employee but apparently not, it's £150 per head. So If I bring Mrs OG (which I will) and YG1 and YG2 (which I could in theory) could I have a £600 party.

Are you sure about that? Where did you read this? All the guides I read comment on bringing a partner but not one of them mentions the whole tribe. Evidence to back up please.

You can have more than one party where the combined total doesn't come over £150 as well ofc.

[Old Greg]

The force is strong with you young padawan.



Are you sure about that? Where did you read this? All the guides I read comment on bringing a partner but not one of them mentions the whole tribe. Evidence to back up please.

You can have more than one party where the combined total doesn't come over £150 as well ofc.

Google HMRC and annual party and report back.

[TheFaQQer]

Are you sure about that? Where did you read this? All the guides I read comment on bringing a partner but not one of them mentions the whole tribe. Evidence to back up please.

HMRC guide EIM21690 says

Exemption not allowance
The figure of £150 is not an allowance. For functions that are outside the scope of the exemption (see example at EIM21691) directors and employees, except those in an excluded employment, are chargeable on the full cost per head, not just the excess over £150, in respect of:

• themselves and
• any members of their family and household who attend as guests.

The cost of the function includes VAT and the cost of transport and/or overnight accommodation if these are provided to enable employees to attend. Divide the total cost of each function by the total number of people (including non-employees) who attend in order to arrive at the cost per head.

This would imply to me that you can invite family and household up to £150 a head (as in OG's example), but you couldn't just invite a few mates and add them, because they are not part of your household.

[northernladuk]

Google HMRC and annual party and report back.

WTF... you fail padawan get back the kitchen...

I read what I could be bothered and see the mention of partner but not family and kids.. Evidence I sav, evidence

[TheFaQQer]

WTF... you fail padawan get back the kitchen...

I read what I could be bothered and see the mention of partner but not family and kids.. Evidence I sav, evidence

HMRC guide EIM21690 says

Exemption not allowance
The figure of £150 is not an allowance. For functions that are outside the scope of the exemption (see example at EIM21691) directors and employees, except those in an excluded employment, are chargeable on the full cost per head, not just the excess over £150, in respect of:

• themselves and
• any members of their family and household who attend as guests.

The cost of the function includes VAT and the cost of transport and/or overnight accommodation if these are provided to enable employees to attend. Divide the total cost of each function by the total number of people (including non-employees) who attend in order to arrive at the cost per head.

This would imply to me that you can invite family and household up to £150 a head (as in OG's example), but you couldn't just invite a few mates and add them, because they are not part of your household.

Somehow, I think I'm repeating myself......

[northernladuk]

Yeah I read this over and over and tried to understand it but I read otherwise..

The figure of £150 is not an allowance. For functions that are outside the scope of the exemption (see example at EIM21691) directors and employees, except those in an excluded employment, are chargeable on the full cost per head, not just the excess over £150, in respect of:

themselves and
any members of their family and household who attend as guests.

The cost of the function includes VAT and the cost of transport and/or overnight accommodation if these are provided to enable employees to attend. Divide the total cost of each function by the total number of people (including non-employees) who attend in order to arrive at the cost per head.

I tried to highlight the key points which made me think this is talking about exceptions that are not allowed. It is the ONLY place I can find the word family as well. I also read other guides written by accountants and cannot find the word family, only 'Partner or wife'. In my mind these leads to two conclusions...

1) If taking family were allowed it would have been indicated more than once.
2) Taking your kids/parents/cousins is hardly in the spirit of what HMRC are trying to achieve here but that is highly debatable I guess.

After reading it so many times I don't know which was is up so would like some help from the pro's

[Old Greg]

Yeah I read this over and over and tried to understand it but I read otherwise..



I tried to highlight the key points which made me think this is talking about exceptions that are not allowed. It is the ONLY place I can find the word family as well. I also read other guides written by accountants and cannot find the word family, only 'Partner or wife'. In my mind these leads to two conclusions...

1) If taking family were allowed it would have been indicated more than once.
2) Taking your kids/parents/cousins is hardly in the spirit of what HMRC are trying to achieve here but that is highly debatable I guess.

After reading it so many times I don't know which was is up so would like some help from the pro's

Good work chaps. A company holding a summer barbecue where kids are welcome could well be within the spirit. You could probably hire a landmark trust property for the weekend to host it in.

[northernladuk]

Good work chaps. A company holding a summer barbecue where kids are welcome could well be within the spirit. You could probably hire a landmark trust property for the weekend to host it in.

Who the hell is gonna know if the kids are there if it is an all covering cost yes that would work. Restaurant bill showing 4 wouldn't.

Found some other sites that mention that the part must be 'primarily for employees' so You and the tribe would not be primarily employee.

We just been duped in to doing your leg work haven't we???