Enjoying the fantastic summer weather? Ready for a break and a celebration? Many Limited Company owners are unaware that HMRC allows you to reward your employees (and their partners) with annual events; such as a summer party. So, why not throw some sausages on the BBQ, host a picnic, get the sound system blaring by a pool and claim the costs.
It’s our summer party in two weeks time, we’ve been meticulously planning and getting excited for some time now. But it appears we’re in the minority; many companies prefer to reserve their festivities for the Christmas period. We think they’re missing out, adding a summer bash to your company’s roster can offer a host of benefits. Not only does it give your employees something to look forward to, it shows them you appreciate the work they do for you. Summer events are great for employee morale, increasing cohesion between staff members as well as letting you celebrate any achievements in the first half of the year.
One-person limited company?
You can still claim back the cost of annual company events – so why not treat you and your partner to a £300 tax-free soiree or summer getaway?
Splash out this summer
HMRC allows you to claim up to £150 per person (including VAT) for annual events per year. So you could host one huge summer party, or combine your winter celebrations with a summer event – as long as the combined total, per head per year, is £150 or less.
This can include food, drink, transport and even hotel stays. Better yet, it can also be claimed for partners who don’t work for the company – so that’s £300 per couple.
Full HMRC details on annual parties can be found here.
What’s the catch?
There’s no catch, just make sure you spend no more than £150 per person; if you go even a penny over you’ll lose all of the tax benefits.
Other than that, HMRC’s rules are straightforward – you simply need to ensure you meet the following criteria:
- The event must be annual and open to all employees in your company
- It’s not an allowance, you’ll still need to claim for an actual meal or event and provide the receipts like any other expense