Christmas party expenses

[mudskipper]

Yes - I have done a search and read the 100s of posts on the above subject...

But still confused about what constitutes a "party".

If I go out with my friends for a meal, can I count this meal as my party and claim back my share of it? Or does it have to be a designated party for company employee (and guest) only?

Thanks!

[Mustang]

That time of year again........!!

[Maslins]

Company employees only.

When big firms have parties with partners (guest) allowed, they have to disallow the proportion that relates to the partner.

[Sally BFCA]

Going on from what Maslins has said, there also has to be a minimum of 2 employees and the party has to be 'open' for all to attend!

[TheFaQQer]

Company employees only.

When big firms have parties with partners (guest) allowed, they have to disallow the proportion that relates to the partner.

Bollocks.

Here's the 2007 thread - http://forums.contractoruk.com/accou...mas-party.html

And here's the HMRC document.

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.

[TheFaQQer]

Going on from what Maslins has said, there also has to be a minimum of 2 employees and the party has to be 'open' for all to attend!

Where is the "minimum of 2 employees" stipulated? I can't see anything in EIM21690 about it, or has that been superseded by more recent guidance?

[Sally BFCA]

Where is the "minimum of 2 employees" stipulated? I can't see anything in EIM21690 about it, or has that been superseded by more recent guidance?

No you are correct, it is not stipulated...

However, if you then read this guide EIM21691

In addition the directors hold an annual party at Christmas for its directors at which the cost per head is £75. This function is not open to staff other than directors. Consequently it is not covered by the exemption because it is not available to staff generally. The full benefit is chargeable on directors attending.

My interpretation is that if you the director and sole employee, if you have no other employees to 'invite', then the expense is disallowed.


It would be interesting to read how others interpret this!

[TheFaQQer]

My interpretation is that if you the director and sole employee, if you have no other employees to 'invite', then the expense is disallowed.


It would be interesting to read how others interpret this!

My interpretation is that you have invited all the employees, therefore it would be allowed. It's only if you have a "directors only" party and don't invite the hoi polloi that you can't claim it.

IANAA

[Sally BFCA]

Ho hum...

I have just phoned the Tax office and asked the question.
They didn't know the answer and have passed it on to a technical inspector.

They will call me back with an answer, which I will post.

Don't hold your breath!

[chef]

That Technical Inspector will want to see ALL your returns for the last 5 years and my guess is you'll end up being allowed this but assessed for IR35..

good luck