As we are fast approaching the season of good cheer and all that, remember that the staff Christmas party is the one time that the taxman seems to raise a glass and allow a little seasonal tax relief.
The rule is that there is a limit of £150 per head per year and this includes current employees, retired employees and partners of both.
If the cost exceeds £150 per head, it is better to ask employees for a contribution of the excess otherwise the full amount becomes a taxable benefit.
In addition VAT can also be reclaimed.
