Christmas parties

Work Christmas Parties can be Tax-free, says ICAEW

Work Christmas Parties can be Tax-free, says ICAEW 21st November 2010 Small firms concerned about the cost of staff Christmas parties should remember they can spend up to £150 per employee tax free, the Institute of Chartered Accountants in England and Wales (ICAEW) has said. The accountancy body pointed out that employers can spend up to £150 annually per staff member on work parties or similar functions without paying any tax. ICAEW head of tax, Frank Haskew, said that the tax exemption would be high enough for most businesses, as most employers would be putting on a low-cost event. “It has been a tough time for many businesses as the economy begins to recover and staff are probably in need of having their spirits raised. Having a Christmas party is a real morale-booster and reward... »

Christmas parties less costly than firms think

According to the Association of Chartered Certified Accountants (ACCA), Businesses should not cancel their Christmas parties without working out the costs involved, as they can be cheaper than expected. Recent research from the Institute of Directors found that more than a quarter of businesses are cutting back on expenses this year, including paying for a Christmas party. However, ACCA head of taxation Chas Roy–Chowdhury said businesses can reduce the cost of parties by taking advantage of tax savings. He pointed out there will be no taxable benefit in kind for employees as long as costs are kept under £150 per head. “As long as parties are open to all staff, up to £150 can be spent on each employee that is tax deductible, with another £150 on each employee&r... »