Tax Tip Week 37 - Christmas Party
For Contractors and Freelancers arranging a Christmas night of celebrations; before you charge the account to the company, find out what the tax implications are!
There are two aspects to consider when claiming office party expenses:
- Expenses deducted against corporation tax
- Expenses that will incur a benefit in kind (BIK) charge
Christmas and other office parties are an allowable expense for the cost of employee/s and their spouse against corporation tax, providing that the social function is ‘open’ for all employees to attend. The cost of anyone who is not an employee is not allowable as it is classed as business entertainment.
In the case of Contractors and Freelancers - Do you qualify?
Please see our guide Christmas / Office Party Expenses in our knowledgebase.