Employment Tax

Entertainment ― staff

Produced by Tolley
  • 19 Oct 2021 23:20

The following Employment Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:

  • Entertainment ― staff
  • Introduction
  • Entertaining events
  • Qualifying annual parties
  • Meals and subsistence
  • Events
  • Staff entertained by third parties
  • VAT and corporate tax
  • Reporting requirements

Entertainment ― staff

Introduction

If an employer provides any staff entertainment for their employees, a taxable benefit may arise on that provision under the Benefits Code. See Simon’s Taxes E4.601. Staff entertainment could be any function, event, party or meal which an employer provides to an employee. HMRC guidance starts at EIM32615.

Entertaining events

The first thing to consider is whether the expenditure incurred by the employer is exempt from tax anywhere else in the tax legislation. This may be because the event is a qualifying annual party, the meal is covered by travel and subsistence rules, or the event is a training event. It is also worth considering whether the entertainment is trivial in nature and can be exempted under the trivial benefits legislation. This could be the case where there is a small office g

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