Tax implications of staff parties
Generally, if the cost of the function is less than £150 per head, there will not be any tax implications for the employee.
As the festive season approaches, it is worth considering the tax implications of Christmas parties for staff at your practice.
On the whole, the cost of staff parties are allowable against the profits of the business, but in some circumstances there may be tax consequences for the employees themselves.
Generally there will be no tax implications for the employee, assuming the total cost of all employee functions in the tax year are less than £150 per head (including VAT).
When you calculate the cost per head, divide the total cost of each function by the number of people who attend. Be sure to include all costs - not just the meal - but also any drinks, entertainment, transport and accommodation you provide for attendees (including non-employees).
If the cost exceeds the £150 limit, then the full cost will be taxable on the employee.
For further information, visit the HMRC website.
The latest 
