- Cost under £50 per employee to provide
- Are not cash or a voucher
- Are not a performance reward
- Are not provided under an employment contract
- Are not a salary sacrifice
Is staff entertaining a regular cost for your business?
If the answer to that question is yes, you’ll want to continue reading, as you, or more importantly, your staff, may be slapped with an unwanted tax bill from HMRC.
Under the current rules a company can spend £150 per employee, per year, on annual staff events, such as a Christmas party or summer barbecue, without the company or the employee suffering tax charges. Where the average spend exceeds £150 per person attending such events, HMRC will assess the attending employees as having received a benefit from the company and that benefit is subject to tax and National Insurance charges. In addition, one-off and informal events may fall under the taxman’s gaze and give rise to tax charges. However, where employees entertain clients as part of their employment duties, no taxable benefit to them arises. Another helpful concession is HMRC’s revised attitude to trivial benefits in kind, which are treated as being non-taxable as long as they