Throw an Office Christmas Party and Reduce Your Tax Bill
By Cheaper Accountant, Nov 6 2015 09:11AM
The Christmas season is fast approaching and we are already starting to see Christmas decorations in many stores around the UK. Given the timing, we thought it would be a good opportunity to write an article about the tax benefits of holding an Office Christmas Party.
If you operate via a limited company you are permitted to provide an employer Christmas party and for the cost of this to be used to reduce company profits chargeable to Corporation Tax.
To qualify as tax deductible expenditure the Christmas party must satisfy the following criteria:
1. To be available to all employees generally.
2. To be held at one location.
HMRC allow £150 per head to be spent on the Christmas party and to qualify as tax reducing expenditure. So why not throw a party for you and your limited company.