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What Corporate Events are Tax Deductible?

If you're thinking about booking a corporate event, you might be wondering which types of events are tax deductible.



Christmas Party Tax Deductible


Is a company Christmas party tax deductible?


Accounting firm BDO have published a handy guide detailing what corporate events can be tax deductible.


In short, there are few rules about what can be claimed & the amount per employee. It's important that you don't spend over 150 per employee. This is considered a threshold, not an allowance, so if the amount is over by 2 per employee, that means that the whole amount cannot be claimed back against your company's annual tax bill.


It's also important that the event is available to all members of staff.



Will hosting a corporate event mean we pay less corporation tax?


If you're able to stick within HMRC's guidance on annual parties, then your company will pay less corporation tax. Claiming your annual corporate event, summer retreat or Christmas party will mean that there is a lower amount of taxable profit on which to pay corporation tax.


What are the other benefits of corporate catering events?


Hosting a corporate event or staff party can be a massive morale booster & improve your team's working relationships. This might mean greater productivity & teamwork in future and can lead to greater employee retention & morale in your team.


Are there any limits on how much we can spend?


HMRC's website tells us that you can spend up to £150 + VAT per head on your annual company Christmas or Summer party.


The party must be open to all employees to be tax deductible.



Is client entertaining tax deductible?


Entertaining clients is specifically not considered tax deductible by HMRC. This means it's important to confirm that your corporate event or Christmas party is not considered to be entertaining, or you might end up with an unexpected tax bill.


Summary

If you're not 100% sure, check with your accountant to confirm if you're able to write off your annual or Christmas party against your business tax bill.


If you're thinking about hosting a Christmas party, then contact us now. We'll put together a sample quote & an estimate of the cost involved.



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