Self Employed Christmas Party

Self Employed Christmas Party

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Hello,

I am a freelance, self employed graphic designer. I understand that there is a £150ph tax exemption for business functions including christmas parties. Is this only for employees or can it include partners? I have no employees, I do all my work solely. If my boyfriend and I go out for a nice christmas dinner for my christmas party can I include his meal as an exemption on my tax or would only my meal be exempt? I hope this isn't a silly question. I've had a look around on other forums and it's just left me confused.

Thank you.

Replies (5)

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By Marion Hayes
26th Nov 2013 10:49

Employee only

This just relates to exemptions from Benefits in Kind for employees where their employers have annual functions

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By RetiredTax
26th Nov 2013 10:55

Xmas Parties

Sorry, but I do not believe any will be allowable. The exemption only refers to Employees (and their partners). As you are a sole trader & have no employees any meals you & your boyfriend have will have to be paid for personally and neither will be tax deductible.

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By DMGbus
26th Nov 2013 13:24

Business entity

If the business is a Ltd Co then this opens up the tax-free options for staff parties for the business owner who is, in tax law, an employee.

If the business is a sole trader of partnership not allowable for owner, but allowable for employee (that could include the boyfriend if he were an employee, perhaps he is an unpaid employee if he does actually do some work for the employer / business).

I mention the Ltd Co bit as I often find people who run their businesses through a Ltd Co wrongly (not knowing the tax definition) describing themselves as "self employed".

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Replying to AndrewV12:
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By e.davis
26th Nov 2013 14:12

Thanks for the reply and clarification. I'm not a limited company so it sounds like the exemption doesn't apply to me. Hopefully one of my clients will invite me to their Christmas do!

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By John R
26th Nov 2013 18:42

Attendance at client function

Do not forget to include the value of the client Christmas do in your own accounts as taxable income and account for VAT on it if you are registered!!!!!!!!!!!!!

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