Expert Office Advice

With Christmas swiftly approaching, many businesses are asking themselves - what is the maximum legal spending limit on a Christmas Party whilst still qualifying for a tax exemption in the United Kingdom?

If you are planning an office Christmas party, you can receive a tax exemption depending on how much is spent per person. The maximum amount that can be spent per head annually on corporate events or parties is £150.

This £150 per head includes everything for the event, from food, hiring the venue, transport and entertainment. This maximum also covers alcoholic beverages. You must ensure you don’t go over the maximum spend per attendee, or you will be liable to pay tax on the whole amount, even if it’s just a few pounds over the limit.

If you allow employees to bring spouses or dates, the same applies. The tax exemption is per person at the event, not only people employed by the company. Just remember the £150 tax exemption is for the whole year, so if you held a summer gala or event, this would have to be taken into account.

Click here for more tips on Office Christmas Parties.