Partying for free?

The taxman payeth!

Is this you?

We have spoken to several companies since 2009 who had decided to cancel or put on hold their staff party as they 'do not have the budget'.

But did you know that if you are a limited company that is still in profit, the government allows you to claim the cost of your staff party against your tax bill? Every such company, large or small, is allowed to treat staff parties and functions with a total cost of less than 150 per year (to include VAT, transport, accommodation etc) per person as a tax-free benefit. So if during the current traumatic economic climate you are in the lucky position of still making a profit (irrespective of size) you can claim this amount as an expense in your accounts.

Is your financial department aware of this tax break? If not, get them to investigate it as we're sure they would like to party too! How much nicer to give something back to the staff to boost morale in these troubled times rather than giving it back to the government. It costs you nothing to make your staff feel valued!

RED SKY EVENTS...

...Blue Sky Thinking