Annual functions - timing and frequency of thereof

[chaddy]

Hello - I understand that it is possible and that it is customarary for director of limited company to have an annual function whose costs are commensurate with and not exceeding the sum of £150 per attendant and for a one man show there can be considered to be 2 attendants - both the director and the wife so the total monies claimable would be £300.

My questions are these.

1) Can this function occur at any time in the year?

2) I wish to invite 15 people - I will be there (as a director) as will my wife. I will be claiming the £300 and this sum will cover the bill for all 15 people. As the venue is small, this would take place on 2 separate days. Would this be problematic? That is to say - does the function have to be a one off event.

Thankyou in anticipation of your kind answers.

[TheFaQQer]

1) Can this function occur at any time in the year?

Yes, there is nothing in the expenses manual which dictates time of year.

2) That is to say - does the function have to be a one off event.

No, you can have multiple events throughout the year.

Make sure that the total expenditure doesn't go over the threshold, though, or the whole event becomes taxable - eg. you spend £350 then you would be taxed on the £350 rather than on just the bit that is over the threshold.

Ideally, you might want to run questions like this past your accountant (I appreciate that (s)he probably isn't available at this time of night, though!).

There is a good section over to the right about Contractor Expenses which might be worth a quick look too, and I know some accountants produce free documents on contractor expenses, for example SJD do (I am not with them, so cannot comment on anything else about them, but they used to do a free guide that was handy as a new starter).

(Oh, and welcome )

[TheCyclingProgrammer]

Link to HMRC guidance:
HM Revenue & Customs: Social functions for employees, including annual parties

Do note that it has to be a qualifying "annual" event and although you can have more than one, one off events probably do not qualify - see HMRC example of a party to celebrate a new contract.

[zoco]

Yes, there is nothing in the expenses manual which dictates time of year.


L, you can have multiple events throughout the year.

Make sure that the total expenditure doesn't go over the threshold, though, or the whole event becomes taxable - eg. you spend £350 then you would be taxed on the £350 rather than on just the bit that is over the threshold.

Ideally, you might want to run questions like this past your accountant (I appreciate that (s)he probably isn't available at this time of night, though!).

There is a good section over to the right about Contractor Expenses which might be worth a quick look too, and I know some accountants produce free documents on contractor expenses, for example SJD do (I am not with them, so cannot comment on anything else about them, but they used to do a free guide that was handy as a new starter).

(Oh, and welcome )

Hmmm... That's interesting because I've just done my year end and my accountant has pulled me up on this. I claimed 3 meals out with the missus over Christmas - came to just under £300 but I was told it had to be a single event so I claimed the dearest one and took the other 2 on the chin.

[TheFaQQer]

Hmmm... That's interesting because I've just done my year end and my accountant has pulled me up on this. I claimed 3 meals out with the missus over Christmas - came to just under £300 but I was told it had to be a single event so I claimed the dearest one and took the other 2 on the chin.

Read the HMRC link above

There is a section titled "You provide two or more qualifying events" which gives you details.

[Contreras]

Hello - I understand that it is possible and that it is customarary for director of limited company to have an annual function whose costs are commensurate with and not exceeding the sum of £150 per attendant and for a one man show there can be considered to be 2 attendants - both the director and the wife so the total monies claimable would be £300.

My questions are these.

1) Can this function occur at any time in the year?

2) I wish to invite 15 people - I will be there (as a director) as will my wife. I will be claiming the £300 and this sum will cover the bill for all 15 people. As the venue is small, this would take place on 2 separate days. Would this be problematic? That is to say - does the function have to be a one off event.

Thankyou in anticipation of your kind answers.

As I understand it the 15 people will all need to be either directors, employees, or cohabiting family. Can't see anything about the later in the HMRC paged linked to above, so ICBW.

[TheCyclingProgrammer]

As I understand it the 15 people will all need to be either directors, employees, or cohabiting family. Can't see anything about the later in the HMRC paged linked to above, so ICBW.

Non employees can attend, the main condition is that it's open to all employees. Obviously no BIK or tax charge applies to non employees but they are included when calcukating the cost per head.

EIM21690 - Particular benefits: annual parties and other social functions

See last paragraph.

[Contreras]

Non employees can attend, the main condition is that it's open to all employees. Obviously no BIK or tax charge applies to non employees but they are included when calcukating the cost per head.

EIM21690 - Particular benefits: annual parties and other social functions

See last paragraph.

Yes but AFAIK the non-employee guests must be family, or cohabiting, with said employees.

[The Spartan]

This reminds me I must do my summer one almost forgot about it.

[northernladuk]

IMO rules aside I just wouldn't bother claiming for the others. Inviting every tom dick and harry to your event just doesn't sound right. Might as well just go out with your mates and claim it. Claim for you and the wife only on both occasions and just go out for a meal at xmas to make up the £300. Same claim, all above board.

If it's truly a business function then pay through the company but don't put it against tax. At least it won't affect your take home amount if that makes sense.

Too trivial to start pushing it for me, especially when it's easy to claim the full amount over the year.