Christmas expenses guide

Can I claim for a Christmas party?

Yes! You can claim for an annual party (it doesn’t have to be a Christmas party but must be an annual event). The cost is limited to £150 (including VAT) per employee or director. Be careful not to breach the £150 limit as if it works out to be even a penny over, the full amount becomes subject to tax and national insurance (NI). If your spouse or civil partner attends as your guest, that can be claimed too as long as you don’t exceed the £150 limit. The event must be open to all employees of your business.

Bear in mind this is an expense not a flat rate allowance, so keep the receipts and only claim what you have spent (under £150).

Can I claim for a gift bought for a client?

The rules are strict here, and in general the answer is no. The exception to this is for gifts that bear a conspicuous advert for your business and are not:
– Food, drink, tobacco or vouchers
– The cost of the gift does not exceed £50

Can I claim for a gift bought for employees?

Gifts to staff are allowable as long as they are regarded to be a trivial benefit. Cash benefits, benefits with a money’s worth and non-cash vouchers, however small in amount, should not be regarded as trivial. Gifts such as a box of chocolates, an ordinary bottle of wine or even a turkey are all trivial benefits.