December 1st, 2019

The Jonathan Ford & Co Advent Calendar – Day 1

 

Over the course of the festive season we’ll be bringing you an advent calendar’s worth of tax and financial tips. Some of them might even be a little Christmassy! First up…

Have a Christmas Party

Behind the first door is something that should put you in the mood for the holidays: an annual Christmas party. This isn’t available to sole traders – bah humbug – but companies can treat their staff to a tax free Christmas event, be that a party, meal, night out or adventure day.

To be tax free, the total cost of all annual events – including VAT and travel and accommodation costs – must not come to more than £150 per head per tax year. The great thing is that plus-ones can be invited and they can also have up to £150 spent on them in the tax year.

Beware 1: This is not an allowance so if your Christmas party works out at £151 per head then each employee will be taxed on the full £151 cost.

Beware 2: Be careful if you put on more than one annual event. If you have an annual team building day and this costs £100 per head, then you would only be able to spend £50 per head on your Christmas party if it is to be tax free.

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Limited Companies Staff Tax Advice

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Director

John manages a wide portfolio of owner managed businesses and oversees the smooth operation of the firm’s payroll department.

After obtaining his degree in mathematics from the University of Liverpool, John joined Jonathan Ford & Co in 2004 and qualified as a chartered accountant four years later. John likes to keep abreast of developments in tax and accounting and is responsible for the mentoring of junior staff.

Outside of work, John enjoys keeping fit and is a Liverpool FC season ticket holder.

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