The Drinks Are on You
As the high street fills with carol singers and busy shoppers over the coming weeks, and as the local workforce begins spilling out onto the streets after their office Christmas do, what for the lonely contractor?
You may have been invited to your client’s Christmas party, and that’s fine (from an IR35 perspective we’d suggest you pay for your own ticket), but what about your limited company? Can contractors have their own work Christmas parties?
Employee entertainment is tax deductible, so even if it’s just you and your secretary, you can save corporation tax through a Christmas do. You will need to ensure you keep all of the receipts but items including taxi fare, food and drink, event tickets, and accommodation can all be included.
To not become a benefit-in-kind however, your work event should not exceed £150 per head. That is an annual allowance too, so if Christmas isn’t your bag, you could use the allowance on a summer BBQ or simply an annual dinner, or even hold a multitude of employee events, as long as they collectively stay within the annual £150 per head limit.
For more information on expenses access visits our Expenses Guide page here or get in touch with your account manager should you have any queries.
What Legal Issues Might Contractors Face?
From tax investigations to client disputes and defamation
Does Length Of Contract Impact Your IR35 Status?
Should contractors be wary about working for a client over a long period of time?
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All your accountancy needs and more, for one fixed fee.