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Is my Christmas party tax deductible?

Thursday, September 5, 2019
By Cheryl Sharp
Is my Christmas party tax deductible?

Sorry to mention the C word in early September, but I know I’m not the only business owner already thinking ahead to booking a Christmas do!  I’ve seen the local venues advertising their festive events – and already panicking we may be too late to book the do of our choice!

But before you go and book something make sure you know all the facts first! Yes, your Christmas Party will be tax deductible, but only if you meet the following conditions:

🐷 The amount per person does not exceed £150 including VAT (even if you spend £150.01 the whole amount is then not tax deductible)

🐷 You can also include partners of your employees, again as long as the amount per person does not exceed £150 including VAT

🐷 The event must be open to all staff (and up to them if they choose to attend or not)

🐷 This is an annual allowance – so if you have other events during the year, totalled together they cannot exceed the £150 including VAT

So now you have all the facts, you can safely get booking in the knowledge that your Christmas Party can be tax deductible.

And – if you’re a sole director the good news is you can treat your husband/wife to a Christmas outing on the company – as long as it doesn’t cost you more than £300 including VAT 😉

Happy partying.

PS – Don’t forget to invite your accountant – we’d love to join you 😉