Entertaining family members

Travel and accommodation costs of family members attending organisation production

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I work for a charity which produces shows that are free to members of the public.  We would like staff and their families to be able to attend and support the show.  As the shows are not local this would involve travel and overnight accomodation costs.  Where would we stand in terms of benefits.  Would this be classed as entertainment with class 1a NI costs payable by the employer?

Many thanks

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By Martin B
21st Jun 2018 12:58

Surely as a charity the objective is to minimise administration costs and use the funds for the purpose the public has donated. Why don't the families pay their own way?
This is pricesly why charities aare getting the poor press as donations are used to fund the administrative costs as apposed to good causes.
It is a benefit in Kind for the staff.

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Replying to Martin B:
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By beth
21st Jun 2018 13:34

This is being funded from earned income rather than donated income. The staff have worked considerably overtime that they are not compensated for whilst being paid below average salaries. There are no staff social event and this is seen as a way of compensating for that.

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Replying to beth:
By Moonbeam
21st Jun 2018 14:15

Imagine if you were required to tell all donors about what would look like a "jolly". They wouldn't care whether it was from earned or donated income, or that you thought staff "deserved" it. They would feel that their money wasn't being spent for the benefit of the charity.
Perhaps you should start paying staff a better salary before you hand out benefits like this. They'd probably prefer that. An annual staff social event - where they could bring a partner - of under £150 per head - would not be taxable on either you or them.
Most of us accountants have a very cynical view of charities. Many of them seem to exist just to fund staff salaries, leaving precious little money for the cause of the charity.

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By WhichTyler
21st Jun 2018 13:10

It could be justifiable for staff to be required to attend and deliver and view the production. Family would be a no (or at least a BiK) unless they fall into the beneficiary class of the charity, and even then the perception of conflict of interest should make you wary. You could put it through a PSA rather than assessing each staff member individually....

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