X'mas Do for Limited Companies

skyjumper

hi guys, needed some advice. Came across the following

HM Revenue & Customs’ rules that are set out for the Christmas party to qualify for the tax break:

Parties must be open to all staff
A maximum of £150 can be spent on each employee
This amount covers entertainment, accommodation, venue, transport and VAT
There may be 1 guest per employee, each of whom are entitled to a £150 exemption
If this limit is exceeded then the full amount spent, not just the amount over £150, will be subject to income tax and NIC payments.

Now my questions are

I'm the only Director of a Ltd Comp and the only other employee is the Secretary(it's my wife who is the Sec). Now if we do go out for a X'mas do, according to the above details, it would come under the tax break criteria, as long as things are under 150 per head. Do I have to prove that I had spent that much money or can I just claim the £300 for the 2 of us together and use it according to our choice. Do we need to provide or keep the reciepts for everything.
We were planning for a 3 day break in London- so the £300 would go towards - hire car, hotel stay and food.

sorry to be daft, but this is our first year in trading and have managed to make a decent profit. Please don't criticise as I'm not planning to spend Public money or Tax payer's money for this.

thanks for reading and any comments/ suggestions welcome

johnllew

skyjumper wrote: »

if we do go out for a X'mas do, according to the above details, it would come under the tax break criteria, as long as things are under 150 per head. Do I have to prove that I had spent that much money

Yes.

or can I just claim the £300 for the 2 of us together and use it according to our choice.

No.

Do we need to provide or keep the reciepts for everything.

Yes.

skyjumper

Thanks johnllew,

Ihad a feeling this was the right thing to do.

before anyone comments, I do have an accountant but she is on holidays for the next 2 weeks and the earlier I found out about this, I thought would have been beneficial for me

thanks again

skyjumper

trying to bump it up a bit to get more answers

I guess this was buried under all the VAT reduction discussions