Limited Company - Entertainment

UK tax benefits for Limited Companies entertainment.

Christmas Party/Annual Event

An annual event, usually a Christmas Party, is an allowable business expense for the company as long as the following conditions are met:

Total cost must not exceed £150.00 per head, not even by a penny.

All staff must be invited

All staff may invite a partner, invited partners add an extra £150.00 per head allowance giving you a total of £300.00 per head to spend that is tax deductible.

Business Entertaining

Business entertaining is NOT an allowable expense. You SHOULD claim for any such entertaining in your bookkeeping spreadsheet however the cost will not be included when calculating the taxable profits of your company. It therefore does not reduce your company’s tax liability.

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Disclaimer

This information is for general information only. We take no responsibility for any action taken or refrained from in consequence of its contents. Always seek our professional advice specific to your circumstances before acting.