What counts as a social function

[MarillionFan]

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.

So to clarify.

Are we saying it's £150 per person, and those 'persons' can be family. Direct or can we have extended and 'almost family'.

Also do I just need a receipt paid for by cash that I can claim back?

(Yet to do my expenses for December )

[TheFaQQer]

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

Income Tax (Earnings and Pensions) Act 2003 section 264 says the following:

For the purposes of this section, the cost per head of a party or function is the total cost of providing—
(a)the party or function, and
(b)any transport or accommodation incidentally provided for persons attending it (whether or not they are the employer’s employees),divided by the number of those persons.
(5)That total cost includes any value added tax on the expenses incurred in providing the party, function, transport or accommodation.

There is nothing in the act that says that the invitees need to be employees, family members or neither. Therefore, since the act provides for non-employees to go, I would take it that as long as the social function averages at under £150 a head (if you read the Act, it says £75 a head, but this has since been increased), there is no restriction about who the company invites.

[northernladuk]

There is nothing in the act that says that the invitees need to be employees, family members or neither. Therefore, since the act provides for non-employees to go, I would take it that as long as the social function averages at under £150 a head (if you read the Act, it says £75 a head, but this has since been increased), there is no restriction about who the company invites.

Good find and tend to have to agree based on that.

[northernladuk]

So to clarify.

Are we saying it's £150 per person, and those 'persons' can be family. Direct or can we have extended and 'almost family'.
Also do I just need a receipt paid for by cash that I can claim back?

(Yet to do my expenses for December )

Therein is the bit that doesn't sit right with me. This lack of clarity opens the whole thing to abuse and they are not that slack surely but can't fault TheFaQQers find. I just think this is tied down because it doesn't explicity mention it. Thats my opinion for now.

(Haven't done mine yet either!! )

[MarillionFan]

Therein is the bit that doesn't sit right with me. This lack of clarity opens the whole thing to abuse and they are not that slack surely but can't fault TheFaQQers find. I just think this is tied down because it doesn't explicity mention it. Thats my opinion for now.

(Haven't done mine yet either!! )

[Old Greg]

Glad to see you've learned the OG is right dance.

I'm not an expert, but I try to apply a common sense approach.

Imagine you are running a firm with 20 employees. You might easily hold your annual party as a summer barbecue and hire a place and get caterers in. You could probably very reasonably let employees bring their partners and kids. IMO it would not be reasonable to let everyone invite their extended families. IMO if one employee had his two nephews staying it would be reasonable to count them in. That gives you the number of attendees and we know we can have £150 per head.

I am sorry if our esteemed employee of the year feels he has had to do a lot of thethe leg work on this thread but it makes sense to slot into roles that play to our strengths. Hopefully by applying some reasonable common sense, I can fill that particular gap.

[Old Greg]

Those of you who've had advice from your accountant that you can have £150 for partners: have any of you had that advice from SJD?

[northernladuk]

Those of you who've had advice from your accountant that you can have £150 for partners: have any of you had that advice from SJD?

I did ask my SJD contact but can't find the mail. Simon put a post on this very site but a bit generalistic..

Contractors' Questions: Is my Christmas party tax free? :: Contractor UK

[Old Greg]

I did ask my SJD contact but can't find the mail. Simon put a post on this very site but a bit generalistic..

Contractors' Questions: Is my Christmas party tax free? :: Contractor UK

Cheers. Nothing about partners... Will report back.

[psychocandy]

Must admit I didnt realise you could claim this as multiple events? I thought it had to be either a xmas party or summer ball or something but not both....

But, saying this, do you have to have a decent reason? Rather than just bung a few meals out with the Mrs through every year (assuming its all less than £300).

Also, any implications with just being a Director and not an employee (as I am this year only)?