Our office will close for Christmas on Friday 21st December at 1pm and reopen on Wednesday 2nd January at 8.30am. We wish all our clients a very Merry Christmas and a happy and prosperous New Year!
As it's also the time of year for Christmas parties, just a little reminder of HMRC's rules. Staff entertainment is normally considered to be a taxable benefit in kind, with employees paying tax on the value of the benefit and employers also paying Class 1A National Insurance on the value. However, there is an exception to cover events such as a Christmas Party. The event has to be annual, open to all employees and the cost (including VAT) must not exceed £150 per person. In such circumstances the cost is an allowable expense of the business, VAT is recoverable (but may be restricted if customers are included), and there is no tax charge on the employees or Class 1A charge on the employer. So, enjoy! But, be warned, if the cost goes over the £150 per head limit then the full amount is taxable.