As festive season is approaching fast, we would like to remind you, that you can throw a social function or Christmas party for your company’s employees and their family members.
You might not have to report anything to HM Revenue and Customs (HMRC) or pay tax and national Insurance. To be exempt, the party or similar social function must be all the following:
- £150 or less per head
- annual, such as Christmas party or summer barbecue
- open to all your employees
Additionally, your employees are eligible for small gifts (a bottle of wine, store gift card etc), known as a “trivial benefit”.
You don’t have to pay tax on benefit for your employee if all of the following apply:
- it cost you £50 or less to provide
- it isn’t cash or a cash voucher
- it isn’t a reward for their work or performance
- it isn’t in the terms of their contract
For more information, please read here https://www.gov.uk/expenses-benefits-social-functions-partiesand here https://www.gov.uk/expenses-and-benefits-trivial-benefitsor contact us.