Christmas Parties for staff & Christmas Gifts to customers.
Were you aware that an annual event (eg Christmas Party) for your staff at a value of £150 (including VAT) or less for each employee is tax free? However, if you spend more than £150 per head, based on the number of staff and their guest attending, then the excess is a taxable benefit. The £150 must cover the whole event per person, ie food, drink and any transport or accommodation, and remember it MUST also include VAT.
If you hold two staff events during the year, eg Christmas Party at £120 per head and a Summer event at say £50 per head, only one of these can be treated as tax free and the whole of the other event, say the £50 per head, is a taxable benefit.
Gifts to Customers
A tax deduction can be claimed if:-
The gift bears a conspicuous advert for the business and
The gift is not tobacco, drink or food and
The total cost of gifts to any one individual per annum does not exceed £50