The following Employment Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:
Many employers provide social functions to their staff. Often this will include 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.
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:
the function is an annual party
the event is available to all employees in the business, or all employees at one location where the employer has multiple locations
the cost per attendee does not exceed a set amount ― currently £150
Although the legislation includes the term ‘annual’, HMRC has not to date expected the employer to hold the same event every year. However, the event should be of an annual nature such as a Christmas party or summer barbecue. Events which, by their natur
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