A Tax Efficient Virtual Christmas Do
14th December 2020A smorgasboard of new phrases have bounced into our everday conversations this year – including virtual Christmas do.
As we approach the festive season, organising an office Christmas party feels much more important this year. Employers showing how much they value and appreciate their workforce feels much more important this year.
With Covid-19 restrictions in place, use our Virtual Christmas Party Guide to make sure there are no ‘tears’ before bedtime! And that you are being tax efficient of course!
The Christmas Party
The 2020 Christmas parties will obviously look very different this year. But that doesn’t mean you will miss out on your £150 per person exemption. Naturally, there are a few conditions you need to adhere to, but as long as you do and it’s a covid safe/socially distanced affair – party on!
You will be pleased to know HMRC have confirmed that all ‘virtual office parties’ will be eligible for the exemption. What are the key things to note;
~ £150 is the maximum amount that is allowed, so if you go £1 over you cannot claim for any of it. Don’t plan a virtual party and spend £200 per person hoping £150 of it will be exempt. It is an exemption rather than an expense claim. Plus the £150 is an annual figure, and not just for Christmas. If you had a Halloween party for instance, the money for that would need to be included.
~ It needs to be a regular event – something you hold each year.
~ The event needs to be open to all employees.
~ The £150 exemption covers entertainment, food, drink, transport and accommodation. The last 2 being redundant this year if you are having a virtual quiz from your dining room!
Virtual Christmas Party Ideas
- Gameshows and quizzes
- Murder mystery events
- Cocktail making masterclass
- Escape rooms
- Xmas scavenger hunt
- Online bingo
- Festive chocolate making
- Wine tasting evening
- Virtual horse racing
- Taskmaster-esque tasks
- Festive Bake-Off
- Virtual talent show
There maybe someone within the company, or a small group, that would like to organise the Virtual Christmas party. If not, there are plenty of online packages that you can buy, where someone else has done all of the hard work for you.
