Expenses and benefits: social functions and parties
Overview
As an employer providing social functions and parties for your employees, you have certain National Insurance and reporting obligations.
What’s included
What you need to report and pay depends on:
if it’s an annual event
if it’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
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
more information about can be found here
