Business owners have been reminded about the tax breaks they can receive on corporate Christmas parties.
Charlie Hepburn, who is managing director of Vivid Event Group, claims that many clients remain unaware of the tax rules on annual staff parties introduced back in 2003.
It states that the cost of an annual staff party is an allowable tax deduction for businesses, provided that the cost per head does not exceed £150.
This is provided that it’s the only annual staff party of the year. If businesses throw an annual summer party, for example, as well then the £150 per head cost has to be spread across both events in order to be tax deductible.
Speaking to citmagazine.com, Hepburn said: “We still find that we are having to educate businesses of [Section 264 of the Income Tax Earnings and Pensions Act 2003’s] existence. Companies remain unsure of its implications, and how they can use it to their advantage. Once they gain a full understanding of the exemption, they feel cent about factoring it into their annual expenditures.”
It appears as if this advice will apply to more businesses this year than in 2012. Meetpie.com reports that the amount of businesses that have already booked their Christmas party is up 12 per cent on last year.