Christmas Expenses - What you can claim explained

18/12/2019

HMRC does allow limited companies some scope to spread a little festive cheer to directors, staff and business associates - It is not often that there is generosity from HMRC so make the most of it!

The following things can be put through on your company:

• Gifts can be given to clients up to a value of £50 per person. If it is food or alcohol then the gift is not tax deductible but is still classed as a business expense so you can claim for it.
• Gifts to staff up to £50 per gift are tax deductible. So you could give a bottle of champagne for £40 and a £50 turkey and both would be allowable.
• Christmas party up to a value of £150 per person attending. That means that a sole director could invite their spouse/partner and two children and spend up to £600. Be careful to include all associated costs such as travel, meals, tickets and do not exceed the £150 per person otherwise the whole allowance is removed. The party allowance can actually be claimed at any time of year as long as the £150 is not exceeded.

For the above expenses, make sure you get receipts and note on the receipt who the gift was for and who attended the party.