Can anyone clarify if the same deductions for employees are available to sole traders and partners?
Thanks
Replies (10)
Please login or register to join the discussion.
The key is the word "Employees"
The non-taxable benefit of £150 a head for an annual party applies to employees, regardless of whether their employer is a limited company, a partnership, a sole trader or a public body like the Revenue.
What about only director of a company with no other employees who because of another unconnected employment doesn't take a salary. Is he an employee, and can he enjoy a £150 christmas jolly by himself?
Don't confuse
Office holder with employee.
Without a salary you would find if difficult to argue he was an employee.
taking things too far but...
What about if director is paid £1, doesn't set-up PAYE scheme (< £102) and puts on the show?
Office holders qualify...
... I've looked at the point before. Somewhere in the legislation it refers to the fact that the legislation should be read for an office holder as if the word employee is substituted with office holder.
Only academic
If one was to try and take specific advantage of the £150 exemption for an unpaid director or one who is paid £1 you may find that any benefit is extinguished by the cost of an enquiry from HMRC.
I'd rather leave the £150 in
I'd rather leave the £150 in the bank and not worry about the tax implications.