HMRC’s gifts for the employer’s Christmas party

Each year there are a number of items you can claim for when you’re planning the firm’s Christmas party, and looking at this ahead of the festive season can result in savings for your business. To be exempt, the party must be open to all employees, be an annual event – like a Christmas party or a summer barbecue, and cost less than £150 per person to put on. These same rules apply whether a party is online or in real life. You can put on more than one party in various locations if your business is spread across the country, provided every employee is able to attend one of them. You can also have more than one party a year, providing that the combined cost of them all is less than £150 per employee.

When might the company need to pay?

If the company events aren’t exempt, or you have used up the £150 per employee allocation earlier in the year, then you may need to report the value of the party on each employee’s P11D form and pay NICs on the value of it. If the party is part of a salary sacrifice arrangement, and the party’s value is less than the amount of the salary given up, then you would need to report the value of the salary instead. You can find out more information on Gov.uk.

Let us help you

If your business is planning a Christmas party then, please get in touch and we will be happy to offer you the help and guidance you need.