Talk to the Taxperts

01382 312100

Tax Exemption Rules For Virtual Christmas Parties

Since Public Health Scotland (PHS) urged people to defer Christmas parties at this time, many are turning to online or virtual parties this year. Where all normal conditions are met, HMRC accepts a virtual Christmas party as an event that will fall within the tax exemption rules for annual functions.

Employers can spend up to £150 per head (including VAT) towards an annual function, such as a Christmas party, for the cost of providing any food, entertainment, equipment and any other related expenses which are incurred in hosting a virtual event, without creating a tax liability.

An annual event can be held at one location, or separately for different offices/departments if your business has more than one location, as long as all of your employees can attend one of them for it to count as exempt.

It must also be noted that if there are 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. You can read more on what costs to report and how to pay here.

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

Latest News

View all latest news

August 31, 2023

Advisory Fuel Rates For Company Cars

The new company car advisory fuel rates (AFRs) published by HMRC take effect from 1 September 2023. The AFRs for journeys undertaken from 1 September are: After being…

August 16, 2023

Maximising Tax Benefits For Leisure Sector Businesses

Running a business in the leisure sector is all about bringing joy and relaxation to your customers. However, when it comes to tax, it’s essential to ensure your…

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