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What Christmas business expenses can you claim?

What business expenses can I claim through my limited company is one of those questions we are asked throughout the year.

And as Christmas approaches it’s definitely the right time to remind you that you need to remember that all work and no play really does make for bad business.

Even the taxman agrees. Did you know that you can claim up to £150 per person against a staff Christmas (or Easter, or Spring, Summer etc) party…

You can invite all your employees and their partners, and the first £150 you spend per person is allowable for tax relief.

Any spend over and above that would be considered a benefit in kind, so do keep an eye on the overall cost.

Here’s Alex to tell you more…

The allowance applies whether you employ 100 people, or it’s just yourself, so if you haven’t already, act now and don’t miss out!!

Remember, we’re accountants, not HR advisors… Christmas party time is often a busy one for them, so be careful, especially if copious amounts of alcohol are involved.

In addition to your Christmas party, you can buy a gift for your employees of up to £50 in value without it being considered a benefit in kind. This could be a voucher for their favourite store, wine, flowers, or something quite unique to them or to you.

The only rules are that it must not be cash or have any exchangeable monetary value, it must not be as a reward or recognition for work done, and the value must be less than £50. If it does happen to be worth more than £50, then the whole amount, not just the excess will be taxable as a benefit in kind.

If you’re a director in your own business, remember that you are also an employee and don’t forget to give yourself a present too!! Directors’ gifting is limited to no more than £300 value in the course of a year, and no more than £50 value per gift!

Here’s more from Alex on this topic too… slightly distracted by the dog and excited by the concept of tax deductible vouchers…

As always, please feel free to contact us for any further information relating to this topic, or business expenses in general.


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