Company parties can be tax-exempt!

22/08/2007

Did you know that you can write off the cost of your Christmas party to the tune of up to £150 per guest, even if you allow employees to bring partners?

Well it’s true, and not everyone is aware of this very rare gem of a tax gift from the Government. You can even include the cost of ferrying your guests to and from the venue as well as the cost of accommodation (if it doesn’t push the average cost per guest too high).

You can even write off the cost of two or more parties as a tax expense, so long as the aggregate amount per guest does not go over the £150 mark. But be aware of one small caveat. Should the cost of a party go over this amount, then the whole cost of the party becomes liable for tax, not just the excess.

We have put together a comprehensive guide to maximising your tax exemptions on office parties here. For once, let’s raise a toast to Gordon Brown!