You are planning a party for your employees - a chance to get together and relax and reward them for their hard work this year. What are the tax implications?
The good news is that unlike entertaining customers, reasonable levels of employee entertainment are an allowable cost against the profits of the business.
What about the employees themselves? Is it a perk of their jobs and will they be subject to tax?
As long as the total costs of employee entertaining in the tax year are less than £150 per head there will be no tax implications for the employees themselves. In considering this limit make sure you have included all the costs, which may comprise not only the meal but also any drinks plus any transport you provide as a responsible employer.
If the costs are above the £150 per head limit then do get in touch so we can advise you how best to deal with them.