Xmas Party

Xmas Party

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Can anyone clarify if the same deductions for employees are available to sole traders and partners?

Thanks

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Euan's picture
By Euan MacLennan
08th Nov 2011 10:26

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.

Thanks (1)
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By sheffieldaccountant
08th Nov 2011 10:29

so a 2 man partnership with no employees dont qualify?

or

in a partnership with 20 employees, only the employees+ their partner/spouse qualify not the partners or partners wifes/husbands?

 

Thanks in advance

 

 

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By Mouse007
08th Nov 2011 10:30

so the answer is

No,

because sole traders and partners are not employees.

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By MARKJET
08th Nov 2011 10:52

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?

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By Mouse007
08th Nov 2011 11:00

Don't confuse

Office holder with employee.

Without a salary you would find if difficult to argue he was an employee.

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By User deleted
08th Nov 2011 14:48

taking things too far but...

What about if director is paid £1, doesn't set-up PAYE scheme (< £102) and puts on the show?

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By George Attazder
08th Nov 2011 18:41

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.

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By Mouse007
08th Nov 2011 19:43

Nice

 

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By pateldr
11th Nov 2011 12:06

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.

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By sue.hill
12th Nov 2011 08:52

I'd rather leave the £150 in

I'd rather leave the £150 in the bank and not worry about the tax implications.  

 

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