Make sure your Christmas party isn’t taxable on your employees
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Generally business can spend up to £150 a head on an annual staff function per annum without there being any taxable benefit.
The exemption applies to an annual party (for example, a Christmas party), or similar annual function (for example, a summer barbecue), provided for employees and:
- available to employees generally or
- available to employees generally at one location, where the employer has more than one location.
Know your limit
The £150 per head limit is for the entire tax year so as an employer if you put on multiple staff functions over a tax year eg. a summer barbecue and a Christmas party then if the total combined cost of all events is less than £150 a head then there will be no taxable benefit.