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What Are The Tax Rules For My Christmas Party?

Tax Rules for Christmas Parties

You will not have to pay tax and national insurance for your annual Christmas Party if you meet the following criteria.

  • The Party is open to all employees and in a single location.

  • It is an annual event

  • Up to a maximum cost of £150 per person (inclusive of VAT)

What can be included in the £150 allowance?

  • The whole cost of the event, including food, drink and entertainment

  • Travel expenses and accommodation

The £150 per person allowance is applicable to employees and their guests, however, please note that if you exceed the £150 per person allowance then the whole amount becomes taxable, not just the difference.

If you have any specific questions regarding your festive celebrations please do get in touch with one of the team who will be happy to help.

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