Policy and research technical lead The Chartered Institute of Payroll Professionals
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Video chatting online on the occasion of Christmas celebration
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HMRC confirms virtual Christmas party exemption

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Samantha Mann considers how the tax system will support the seasonal festivities for 2020, including the news that virtual Christmas parties will be eligible for the annual function exemption.

23rd Nov 2020
Policy and research technical lead The Chartered Institute of Payroll Professionals
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2020 is a year when an employer’s ability to say thank you to their employees has never been more important. But the Covid-19 lockdown restrictions have put a stop to the annual office party and have forced employers to think of alternative ways to wish employees a happy Christmas and to boost morale.   

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Replies (7)

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By memyself-eye
23rd Nov 2020 17:47

Virtual 'party'?
Can't wait to consume my £100 hamper during the virtual party!
Of course I won't log out during the festivities, lest my boss (me) finds out I'm not 100% dedicated to the bachanalia going on in the twitter sphere (whatever that is).
Never has the 'Esc' button of the computer seemed so appropriate. I might press it now just to check.....
Now, where's the Fortnum and Mason price list
(yes I know they don't start at £100)

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By Mr J Andrews
25th Nov 2020 09:40

Yes. Example 3 of EIM 21691 does encourage gluttony.

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Replying to Mr J Andrews:
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By Simpleton2
25th Nov 2020 11:00

It doesn't appear to specify consumption, only enjoyment. Perhaps taking a sniff of some brandy and just a small taste of the Christmas cake would suffice. Maybe even just appreciation of how pleasantly the hamper had been presented?

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Replying to Mr J Andrews:
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By Comptable
25th Nov 2020 12:43

The example of £100 is only an example - other example could be available - it could be £10; or it could be £150.

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By deanedwardphillips
25th Nov 2020 09:42

Re Trivial benefits - I've always interpreted the £50 as an annual limit per person but this article seems to suggest multiple gifts throughout the year of less than £50 each. Am I reading that incorrectly?

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Replying to deanedwardphillips:
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By Simpleton2
25th Nov 2020 10:50

The limit is per gift, not per year.

But there are some interesting examples where giving the same gift multiple times, would be considered a single high value gift.
https://assets.publishing.service.gov.uk/government/uploads/system/uploa...

Other matters to watch out for is that it is not part of a contractual agreement, including the staff handbook. So if you give a birthday present to everyone, don't put this in the handbook.
https://www.accountingweb.co.uk/tax/hmrc-policy/crackdown-on-trivial-ben...

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By moneymanager
25th Nov 2020 21:16

Terrific, where can I find £150?

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