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Your staff summer party in your accounts is tax deductible

23.06.2022

Business

 

 

 

 

 

 

Planning a staff party this summer? 

Normally, business entertainment is not a tax-deductible expense. However, the cost of entertaining your employees (including directors), for example by having a staff party, is an exception. 

 

Whether your business is run as a company or an unincorporated business (such as a sole trader or a partnership), the cost of such an event in your accounts is tax-deductible – great news!  

 

Also, by concession, HMRC allows unincorporated businesses a tax deduction for entertainment costs relating to the business’s owners where they are part of a larger cost relating to staff entertainment. For example, if the partners of a firm attend an entertainment event put on for their employees. 

 

What about the position for your employees?  

If you provide employees with a perk – such as a staff party - it’s a taxable benefit.  But as you’re probably aware, an exemption applies. The main conditions of the exemption are that: 

So go on, you know it makes sense – enjoy the glorious sunshine while it lasts! 

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