Annual parties

By Tolley in association with Philip Rutherford

The following Employment Tax guidance note by Tolley in association with Philip Rutherford provides comprehensive and up to date tax information covering:

Annual parties
Introduction
Qualifying events
Reporting requirements

Many employers provide a number of functions to their staff. Typically, these take the form of some sort of annual event, usually taking place in the summer and / or at Christmas.

Introduction

Many employers provide a number of functions to their staff. Typically, these take the form of some sort of annual event, usually taking place in the summer and / or at Christmas.

The amounts incurred by the employer in respect of the employee are taxable unless there is an exemption from tax.

Qualifying events

An exemption from tax is provided to employees by ITEPA 2003, s 264 where their employer provides them with a social function and a number of conditions are met: