Annual company events such as Christmas Parties are considered an allowable expense for a business, as long as the event meets the following criteria;
The cost must NOT exceed £150 per head, including VAT.
Even if the total is 1p over the £150 tax and national insurance will be payable will be payable on the ENTIRE cost, not just the excess.
This doesn’t have to just be a Christmas party – it is classed as an annual event and can be used at any time of the year.
When allocating the expense on Freeagent to help us identify it – please add ‘annual event’ to the description.
If you want to discuss anything further – message the office.