Christmas is Coming
We might only be able to meet with two other family households over the festive season but HM Revenue & Customs have set out a concession to allow the annual office party to happen in some way.
Traditionally employers treat their staff at Christmas to a meal or a drinks party, and provided the total cost of such annual events doesn’t exceed £150 per head over the course of the year, and everyone is at least invited, there is no benefit in kind for the employee and the employer gets a full tax write off of the cost.
2020 was proving difficult in this respect with the closure of much of the hospitality sector and staff working from home but Santa sent a special letter to Mr Sunak and HMRC have announced that the concession is now extended to cover virtual parties.
Employers can now hold a virtual party, and provide their employees with a hamper of food and drink (or you could arrange for a local restaurant to deliver a meal) to be enjoyed form the comfort of the employees’ own living room.
Don’t forget this applies to single director companies too, you don’t need a workforce and nothing says you can’t share the goodies with your family or social bubble.