robin sat on a fence post

Virtual Christmas parties will qualify for tax exemption.  Still plenty of time to hold that party now or in the new-year.  HMRC are allowing zoom parties with the same £150/person allowance.   You will not have to report anything to HM Revenue and Customs (HMRC) or pay tax and National Insurance for zoom Christmas parties or similar social function provided they:

  1. Are open to all your employees
  2. Are an annual event such as a Christmas party or summer barbecue
  3. Cost £150 or less per person

If your business has more than one location, an annual event that’s open to all of your staff based at one location still counts as exempt. You can also put on separate parties for different departments, as long as all of your employees can attend one of them.

Multiple annual events costing less than £150 per head combined.  As long as the combined cost of the events is no more than £150 per head, they’re still exempt.

Salary sacrifice arrangements

You do have to report how much social functions and parties are worth to each employee if they are a part of a salary sacrifice arrangement.

Roger Gunning FCMA CGMA

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