Let’s have a Virtual Tax Free Party 2

HMRC have now agreed you can have a Virtual Staff Party tax free

So you could organise a Virtual online event, have a hamper delivered to your staff and that would count.

Virtual functions

Where an annual function is provided virtually using IT then the exemption is capable of being met provided all other conditions are also satisfied as the exemption applies to allow for costs of provision which are generally incurred for the purposes of the event itself.

EIM21690 – Employment Income Manual – HMRC internal manual – GOV.UK (www.gov.uk)

Exemption not allowance

The figure of £150 is not an allowance. For functions that are outside the scope of the exemption (see example at EIM21691) directors and employees, are chargeable on the full cost per head, not just the excess over £150, in respect of:

  • themselves and
  • any members of their family and household who attend as guests.

The cost of the function includes VAT and the cost of transport and/or overnight accommodation if these are provided to enable employees to attend. Divide the total cost of each function by the total number of people (including non-employees) who attend in order to arrive at the cost per head.

steve@bicknells.net

How Boost your finances ahead of the Year End Reply

With the end of the tax year fast approaching, now is a good time to review your business and personal finances to ensure that they are as tax-efficient as possible.

We can help make sure that you don’t miss out on any money-saving opportunities.

Please take some time to read through our 2020/21 Year End Strategies Guide, which contains practical guidance and ideas to implement before 5 April 2021.

With our useful tips and expert assistance, we can help you and your business to increase your profitability and minimise the tax burden.

steve@bicknells.net