Parties can save tax

Around this time of year, people may be thinking about booking their Christmas party, if they haven’t done so already.  Even the smallest of businesses can provide annual tax free events for their employees. The cost of the party itself will be allowed against business profits for tax purposes.  As long as the annual cost of all events per employee are less than £150, the employees are not taxed for having a good time.  In practice HM Revenue & Customs generously (there’s some words you don’t often see together “HM Revenue & Customs and generously”) define employees as including; current employees, retired employees and partners of existing and past employees.