{"id":1314,"date":"2022-11-17T13:09:24","date_gmt":"2022-11-17T13:09:24","guid":{"rendered":"https:\/\/accountants247glasgowsouth.co.uk\/?p=1314"},"modified":"2022-11-17T13:09:25","modified_gmt":"2022-11-17T13:09:25","slug":"employee-parties","status":"publish","type":"post","link":"https:\/\/accountants247glasgowsouth.co.uk\/?p=1314","title":{"rendered":"Are employee parties tax-free?<\/strong>"},"content":{"rendered":"\n

If the\u00a0rules around social functions<\/a>\u00a0are followed, staff events like your end-of-year Christmas party, are tax-deductible for you, as the employer, and tax-free for your staff.<\/p>\n\n\n\n

\"employee<\/figure>\n\n\n\n

This means you can claim back some of the expenses you incur when putting on a social event for your team, while also helping to build better team bonds. <\/p>\n\n\n\n

Whether your party is taking place in the office, at a local restaurant or via Zoom for your remote-working teams, you can be confident that you can recoup some of these expenses by making the relevant claim – The HM Revenue & Customs (HMRC) rules apply equally to any online staff events and remote parties.<\/p>\n\n\n\n

Meeting the rules for tax-exempt staff functions<\/strong><\/p>\n\n\n\n

The annual function exemption means that your company can deduct costs for tax when holding an eligible annual staff social event. It also means that your employees don’t pay tax or national insurance contributions (NIC) on costs relating to these social events.<\/p>\n\n\n\n

This all sounds like good news for the company bank balance, but how does the exemption actually work? And what are the specific rules that you need to know about?<\/p>\n\n\n\n