Annual party -partner/family attendance

incentive

I am director & only employee of my LTD company. 

Under expenses allowances there is a £150 max per head for an annual party. If my husband comes party ( hotel) with me can I claim £150 for him also =£300 total expenses allowances please?

incentive

Hi - sorry I don’t understand what you mean by ‘non employee guidance’? Can you expand please? 

My accountant says I cannot take my partner to my party/ claim expense for him. But I have read on mse threads that a single director with themselves as only employee can claim the £150 for their parner( 2x£150). I have asked HMRC to clarify/ but I am still awaiting a reply and my accounts end tomorrow. 

incentive

I am a salaried employee on PAYee? 

mybestattempt

incentive said:

Hi - sorry I don’t understand what you mean by ‘non employee guidance’? Can you expand please? 

My accountant says I cannot take my partner to my party/ claim expense for him. But I have read on mse threads that a single director with themselves as only employee can claim the £150 for their parner( 2x£150). I have asked HMRC to clarify/ but I am still awaiting a reply and my accounts end tomorrow. 

Here is the official HMRC guidance:


https://www.gov.uk/hmrc-internal-manuals/employment-income-manual/eim21690

incentive

Hi best attempt. 

Thanks I have read these - but am still not sure as HMRC info pasted here does say I can take my partner. But their actual examples - ie £150x number of attendees don’t make it 100% clear if you an the £150 for non employees /husband see below and my account says I can only claim £150 x1 when I have specifically asked. 

HMRC”

are chargeable on the full cost per head, not just the excess over £150, in respect of:

• themselves and
• any members of their family and household who attend as guests.

The cost of the function includes VAT and the cost of transport and/or overnight accommodation if these are provided to enable employees to attend. Divide the total cost of each function by the total number of people (including non-employees) who attend in order to arrive at the cost per head.”

Thank you - appreciated 😀

Nomunnofun1

incentive said:

Hi best attempt. 

Thanks I have read these - but am still not sure as HMRC info pasted here does say I can take my partner. But their actual examples - ie £150x number of attendees don’t make it 100% clear if you an the £150 for non employees /husband see below and my account says I can only claim £150 x1 when I have specifically asked. 

HMRC”

are chargeable on the full cost per head, not just the excess over £150, in respect of:

• themselves and
• any members of their family and household who attend as guests.

The cost of the function includes VAT and the cost of transport and/or overnight accommodation if these are provided to enable employees to attend. Divide the total cost of each function by the total number of people (including non-employees) who attend in order to arrive at the cost per head.”

Thank you - appreciated 😀

The example that you have quoted refers to events outside the exemption and not relevant. 

You do know that you don’t ‘claim’ £150 per head, as opposed to £150 cost per head being exempt from a charge? 

incentive

Can you expand please - 

example outside exemption? 

£150 cost per head - I was looking to purchase my event - ie party at hotel for 1 person? Or buy some booze from Tesco and have party for 1 at home ? But would be good to have party for 2 if it is allowed?? 

Nomunnofun1

incentive said:

Can you expand please - 

example outside exemption? 

£150 cost per head - I was looking to purchase my event - ie party at hotel for 1 person? Or buy some booze from Tesco and have party for 1 at home ? But would be good to have party for 2 if it is allowed?? 

You conveniently quoted from this paragraph:

For functions that are outside the scope of the exemption (see example at EIM21691) directors and employees, except for tax year 2015 to 2016 and earlier those in an excluded employment, are chargeable on the full cost per head, not just the excess over £150, in respect of:

You started at ‘are chargeable’ but did not notice that this whole paragraph referred to functions outside the scope of the exemption i.e. not relevant to you. 

Nomunnofun1

incentive said:

Can you expand please - 

example outside exemption? 

£150 cost per head - I was looking to purchase my event - ie party at hotel for 1 person? Or buy some booze from Tesco and have party for 1 at home ? But would be good to have party for 2 if it is allowed?? 

I have actually fully realised the scope of the question. 

You wish to claim tax relief for a party at a hotel for yourself or for a night at home including drinks for yourself and, perhaps, one other?

TheSpectator

I think this is called taking the proverbial.

incentive

Yes annual party expense allowance £150 per person.
 I am director and only salaried employee
It’s my first year in LTD company and trying to understand what I am allowed and how to use the allowance please ? Party for 1 ?