I have a question about paying for a staff christmas party. I understand that we can spend up to £150.00 per head for each staff member before any tax implications.
Some of our workmen have been taken out for a christmas drink to a local pub that also has some 'Dancers' if you know what I mean!! They have spent about £800.00 pounds and that is well within the £150.00 per head allowance but they did not get any receipts for drinks and dances that they had. Is it acceptable for me to write up a receipt for £800.00 and just put down that it was for drinks at christmas party?
To be allowed you would need to have all receipts/invoices from the establishment and to be allowed for tax purposes all employees should have been invited (not just a select few)
to be allowed for tax purposes all employees should have been invited (not just a select few)
Mark is 100% correct. I have seen the expense disallowed because the business forgot to invite 1 member of staff (usually the cleaner, who is also on the payroll!).
You should also be aware that the figure of £150 for staff parties not only cover the cost of the food and drink but also the cost of accommodation if the employer pays for that as well.
The number of guests can also non-employees such as partners but, as stated above, it must be open to staff generally.
From memory the original case was a employer who claimed for a spa weekend break for all thier employees instead of a formal christmas party, and HMRC tried to disallow it on the grounds that as their was no music it could not be considered a Staff party!
When HMRC lost their case, part of the urling was that not only did it not matter what the occassion was for, but the £150 was per person attending, not per employee!
if you know what I mean!! They have spent about £800.00 pounds and that is well within the £150.00 per head allowance but they did not get any receipts for drinks and dances that they had. Is it acceptable for me to write up a receipt for £800.00 and just put down that it was for drinks at christmas party?
