Employers reminded of tax exemptions for annual parties

Employers reminded of tax exemptions for annual parties

£150 per head exemption for employers available for staff Christmas parties.

ACCA (the Association of Chartered Certified Accountants) is today reminding employers to remember to claim their tax exemption on costs incurred of annual parties such as work Christmas parties providing the cost of the event does not exceed £150 per head.

Chas Roy-Chowdhury, ACCA head of taxation said: “Christmas parties can be a great way of employers saying thank you to their staff for their hard work during the year, but the costs can easily spiral. It’s important that employers know they can claim a tax exemption against the cost of these events.

“Although the exemption does not only apply to Christmas parties, it’s more likely at this time of year when it comes in most useful. The exemption can mean a nice end to the year for both the employers and employees alike.”

Visit www.hmrc.gov.uk/manuals/eimanual/eim21690.htm for more details of the exemption