Expenses and benefits: social functions and parties

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1. Overview

As an employer providing social functions and parties for your employees, you have certain National Insurance and reporting obligations.

What바카라 사이트™s included

What you need to report and pay depends on:

  • if it바카라 사이트™s an annual event
  • if it바카라 사이트™s open to all of your employees
  • if it costs more than £150 per head
  • how many events you provide during the tax year
  • whether the employee is a director, and how much they earn

2. What's exempt

You might not have to report anything to HM Revenue and Customs (HMRC) or pay tax and National Insurance. To be exempt, the party or similar social function must:

  • be open to all your employees
  • be annual, such as a Christmas party or summer barbecue
  • cost £150 or less per person

This also applies to online or virtual parties.

Separate locations and departments

If your business has more than one location, an annual event that바카라 사이트™s open to all of your staff based at one location still counts as exempt. You can also put on separate parties for different departments, as long as all of your employees can attend one of them.

Multiple annual events costing less than £150 per head combined

As long as the combined cost of the events is no more than £150 per head, they바카라 사이트™re still exempt.

Salary sacrifice arrangements

You do have to report how much social functions and parties are worth to each employee if they are a part of a salary sacrifice arrangement.

3. What to report and pay

If any of the events you provide aren바카라 사이트™t exempt, you바카라 사이트™ll have to report the costs to HM Revenue and Customs (HMRC) and pay National Insurance on them.

You must:

Multiple or more annual events costing more than £150 per head combined

If any of the events cost less than £150 per head, you may be able to count these costs as exempt. But you cannot do this if you바카라 사이트™ve already used up the £150 exemption on another event. See of this.

However, you바카라 사이트™ll have to report and pay on the full costs of any additional events that go over this limit, even if they cost less than £150 per head on their own.

Salary sacrifice arrangements

If the costs of the events are less than the amount of salary given up, report the salary amount instead.

These rules do not apply to arrangements made before 6 April 2017 - check when the rules will change.

4. Technical guidance

The following guide contains more detailed information: