![]() This depends on: a) whether you give cash bonuses or gifts to an employee and b) if you give goods to an employee, whether or not they can be resold for cash. Cloud accounting software such as Xero gives you an instant snapshot of your incomings and outgoings.Īs an employer providing Christmas bonuses to your employees, you have certain tax, National Insurance and reporting obligations. There’s no point looking back and thinking ‘oops, we didn’t bill enough last month’. You can’t start planning a team night out if you don’t have an idea of what’s coming in and out. If the cost of the party exceeds £150 per person then unfortunately all the costs are taxable on the employee as a benefit in kind. ![]() ![]() HMRC states that the Christmas party must include all employees, and you can only spend a maximum of £150 per head inclusive of VAT. Whilst getting your team together to reward and recognise their hard work during the year, there are some Terms & Conditions. One thing you don’t need to dread is the tax headache – in theory. No event fills us with such a mix of ideas and dread about the costs. Here are our top 6 small business accounting tips to help you see through the slow financial months. It’s around this time that spending is unavoidable on Christmas parties, secret Santa gifts and employee bonuses. Christmas is just around the corner, and for retailers, this time of year is when the tills really start ringing, but as a service business, you might find that things are starting to slow down.
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