Enjoying the hot summer weather? Fancy a celebration on your limited company? Read on to learn how you can save tax by throwing a staff summer party.
As a limited company owner, HMRC allows you to reward your employees (and their partners) with annual events, such as a summer or Christmas party.
Many companies prefer to reserve their festivities for the Christmas period, but we think they’re missing out! Summer events are great for employee morale, increasing cohesion between staff members as well as letting you celebrate any achievements in the first half of the year. Plus, who doesn't love a barbecue in the sun?
HMRC allows you to claim up to £150 per person (including VAT) for annual events per year. So you could host one huge summer party, or combine your winter celebrations with a summer event – as long as the combined total, per head per year, is £150 or less.
This can include food, drink, transport and even hotel stays. The great news is that it can also be claimed for partners who don’t work for the company – so that’s £300 per couple.
Full HMRC details on annual parties can be found here.
There’s no catch, just make sure you spend no more than £150 per person each year - if you go even a penny over you’ll lose all of the tax benefits.
Other than that, HMRC’s rules are straightforward – you simply need to ensure you meet the following criteria:
The event must be annual and open to all employees in your company
It’s not an allowance, you’ll still need to claim for an actual meal or event and provide the receipts like any other expense
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