Party On!

You can get a full tax deduction for entertaining your staff and their partners. However there is a catch, the total cost per person can’t go above £150 (the £150 limit applies to the total cost of all parties over the year). The full cost must then be apportioned between the staff that attended and reported as a benefit-in-kind on form P11D for each of them. You can also charge guests a nominal figure (VAT inclusive) to offset against your costs.