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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Employee only
This just relates to exemptions from Benefits in Kind for employees where their employers have annual functions
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.
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".
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!!!!!!!!!!!!!