As an employer, there are certain reporting obligations for staff entertainment. For your Christmas party, you do not need to report anything if the event is:
- An annual event
- Open to all of your employees
- Costs no more than £150 per head.
On a related theme, business gifts aren’t normally allowed to be deducted from profits for tax, but there are some exceptions.
Small items that feature an obvious advertising message e.g. branded pens, mugs and diaries etc. are tax deductible. Tax relief can also be claimed when giving free samples of your products to the public. However, consumable gifts (food, drink or tobacco) aren’t eligible for the tax deduction, and the total cost of all tax-free gifts to any one recipient within the tax year is capped at £50.
If you’re thinking of giving business gifts over the festive period and would like some advice, please call us on 01782 279615.