NEWS : Accountancy
Release date: 05/12/16
When they attended the Effective Business Network (ebn) Braintree Group at The White Hart Hotel on Wednesday 23rd November, Braintree businesses were given free advice from the owner of Profit Guide Accountants, Tracey Kelk, with her helpful tax tips for holiday periods.
After enjoying a full cooked breakfast, members learnt that the cost of a staff party is an allowable deduction from taxable profits for businesses.
Tracey said: "You can spend up to £150 per head, which can include partners of employees but no more, or all is taxable.
"Cost includes the total cost of the function, including any associated transport - e.g. taxis, accommodation and VAT. VAT is recoverable on staff entertaining but needs to be apportioned if any non-staff attend.
"So, a director employee of his/her own limited company can have a Christmas meal with their partner and get a tax deduction of up to £300, but the function must be available to all employees.
"Customer entertaining is not allowable, so you can't get a tax deduction for that, nor recover VAT. And you can't have a party as a sole trader on your own, or allow your share if you employee others."
Tracey added: "Just as an aside, the £150 is an annual figure, so it doesn't have to just be a Christmas party; it could be a summer party or spread over several events throughout the year, as long as the total doesn't exceed the £150. If it does exceed £150, it is still an allowable deduction for the business but is a taxable benefit on the employees."
ebn Managing Director Glenys Chatterley said: "Networking is about building relationships to help businesses grow and become stronger, and this includes getting regular, free advice from other members to help them meet their business needs."
Notes for editors
Tracey Kelk on 01787 237086
Glenys Chatterley on 07780 666726