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Liv's Additions


May 2023

How to claim staff entertainment as a business expense.

Before you hire the karaoke machine there are rules that you need to follow:

HMRC’s rules

Since you are a director of your own Limited Company you are able to host any event up to a certain value that’s exempt from tax and National Insurance:

What if there is only you?

All good, it can be a party for one! As long as all of the above is met, go ahead.

What about employees?

It doesn’t matter how many you have as long as the event is accessible to all and it meets all of the criteria above, then you can claim it as an allowable business expense.

BUT an exemption and not an allowance

The limit is £150, this means if you go over by even 1p, the expense as a whole will be subject to tax and National Insurance. Staff events are classed as exemptions, not allowances. Stick to your budget and all will be ok.

Remember!

The £150 is your total amount for the whole year per person, and not per event, so be careful when you plan, especially if you have more than one event per year.

If you need some help with how to make this all work then get in touch with us now, we will get you sorted in no time.