If you are thinking of planning your annual Christmas bash, here are a few early tips for you:

1. You can get tax relief on amount of £150 per head.
2. It does not just apply to Christmas - but any function
3. It is not limited to just one "do" – you could have Christmas party and a Summer barbecue, for example, so long as the total cost doesn’t exceed £150 per head.
4. If you go even 1p over the limit per head on a function, you will not get tax relief on the WHOLE AMOUNT.
5. If you do have two functions, which together exceed £150 per head, but alone do not, one will be tax-allowed and one will not.
6. You can work out the cost per head as follows:

Total cost of function (including food, drink, transport etc) divided by the number of guests.

Speaking of Christmas, it’s worth mentioning that you can get tax relief on a business gift worth £10 or less to any person in any one year. If it is more than £10, you will not get tax relief on any part of it.

So what is a business gift I hear you ask?

1. Can’t be food or drink
2. Can’t be vouchers that can be exchanged for food and drink.
3. Must carry an advert for the business.

So that’s chocolates out!

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This web-site was last updated on 13/06/2008

Copyright © 2003-2008 Mac Kotecha & Company. All rights Reserved. The information on this site is for general guidance only. It is essential to take professional advice on specific issues about their impact on any individual or entity. No liability can be accepted for any errors or omission or for any person acting or refraining from acting on the information provided on this site.