Tax
As a business owner, you are always looking for a way to save tax. Therefore, Christmas can seem like a daunting time with parties and presents as it can be a very expensive time of year.
Christmas is a wonderful time not only to treat yourself but to treat your employees too. Therefore, make sure you spend the time enjoying yourself this party season and not worrying too much. We have compiled a list of information for you to use to help you out…
Let’s first talk about the big one, tax. As a business owner, you are always worried about how you can lessen your tax or receive some kind of tax relief. So, did you know about HMRC allowing tax relief for businesses to provide an annual event for staff? For example, a Christmas party! Even if you are a Solopreneur and the only one in your business, you can still follow the tradition of having a Christmas party. Why not? Go and treat yourself!
If you are putting on a Christmas party, you can claim a maximum of £150 per head. This means that you and your team can have an excellent evening. Also, if you do work on your own, you can invite your partner meaning that you and your loved one are able to spend a night out with £300 to spend, tax-free.
The maximum amount that you can spend per head is £150. In the event that you exceed this limit, the entire claim would become subject to deductions of National Insurance and Income Tax. This event must also be available to all of your staff members.
Finally, a reminder that this is an annual allowance, not per event. Therefore, if you have already claimed an amount for a BBQ back in the Summer, you would only be able to claim back the rest to make a grand total of £150. Therefore, make sure you plan accordingly so you know just how much tax-free money you can claim.
From all of us at Crisp Accountancy, have a very Merry Christmas! If you find yourself wanting to onboard with us during the New Year, you can contact us here, to find out more.
