Talk to the Taxperts

01382 312100

HMRC Confirms Virtual Christmas Party Exemption

With traditional office gatherings being substituted for online or virtual parties this year, the news that HMRC have confirmed that where all normal conditions are met, they will accept a virtual Christmas party as an event that will fall within the tax exemption rules for annual functions has been welcomed by many.

The rules allow employers to spend up to £150 per head (including VAT) towards the costs of an annual function such as a Christmas party, without creating a tax liability. Therefore, the cost of providing any food, entertainment, equipment and any other related expenses which are incurred in hosting a virtual event, will be exempt, subject to the normal conditions of the exemption being met.

To qualify, the party must be an annual event which is open to all staff generally, or all staff at a specific location, if the employer has more than one location. It must be noted that if an employer has more than one annual event in a tax year, the combined cost per head must be no more than £150 for all the events to be tax-free.

For help with allowable business deductions,  please email our EQ Taxperts or call your local office contact.

Latest News

View all latest news

March 15, 2024

Final opportunity – Urgent planning deadline for the transition to the ‘tax year basis’

Speed read Any individual who is a sole trader or partner in a trading or professional partnership will be taxed under the new ‘tax year basis’, which means…

February 29, 2024

Tax Planning Tips Ahead Of The New Tax Year

With the end of the financial year drawing close, now is the time to evaluate your tax position for the year to 5 April 2024 to ensure that…

Download our EQ app and keep up to date with tax news, changes and have access to our EQ Portal, tax calculators and key tax dates at your fingertips. Click on the relevant button on your device to download our free app.

Visit EQ Accountants Visit EQ Accountants

Explore the full range of EQ Expertise

acca
CA
icaew
the-charteded-institute-of-taxation-logo