UK businesses reminded of tax-free party opportunities

Wednesday, May 5th 2010

British businesses could hold a staff party and receive tax-free benefits this summer.

The reminder comes from the Institute of Chartered Accountants (ICAEW), which says there is the potential for firms to spend up to £150 on each member of staff without being charged tax on the cost.

Even if parties only last for 90 minutes, employers can get tax relief on total fees, covering money they use for food, drink, accommodation and transport home.

Anita Monteith from the ICAEW Tax Faculty comments: "Many businesses have had a tough time this past year and staff probably need a bit of a lift."

Throwing a summer party might be one way for companies to show appreciation for their personnel, which could yield better work and support in return, she adds.

And the body - which has more than 130,000 members - says the £150 limit applies for the whole year, so could be combined with a Christmas party.