The £150 annual exemption for staff parties is something I've known for as long I can remember. Yet, I was surprised to see in the legislation that the £150 includes VAT.
I notice even the HMRC guidance doesn't mention it (https://www.gov.uk/expenses-benefits-social-functions-parties), although their manuals do.
At most firms I've worked at, the basic check come accounts and/or P11D time is to ensure the staff entertainment is less than £150 per head, but this will normally be the net figure. This makes me wonder how many potential benefits have been missed over the years.
I will be raising the issue internally to ensure it is not missed going forward but thought I'd mention in case it's a common black hole (or perhaps I've misunderstood something here).