You may have an annual Christmas party for your team, but the tax rules also allow team parties at other times of the year which are a tax-free benefit if certain conditions are satisfied.
The exemption applies to an annual party (for example, a Christmas party), or similar annual function (for example, a summer barbecue), provided for team members and is available to all team members or available to all team members at that location, where the employer has more than one location.
If you provide two or more annual parties or functions, no tax charge arises in respect of the party, or parties, for which costs per head do not exceed £150 in aggregate. For each function the cost per head should be calculated.
The cost per head of subsequent functions should be added. If the total cost per head goes over £150, then whichever functions best utilise the £150 are exempt, the others are taxable.
For further help and advice with your team functions, give the GreenStones team a call on 01733 371180.