Christmas party cancelled? Other tax-efficient options are available

Many companies have decided to cancel Christmas parties due to the spread of Omnicron variant but there are other ways that they can reward employees.

Robert Salter a client service director with Blick Rothenberg said: ‘It is possible to run virtual Christmas parties with the employer providing food and wine for the employee. The tax man has confirmed that such virtual events qualify as an annual party and would therefore be potentially tax free for the employer or employee (subject to the £150 per person annual limit which exists for traditional Christmas parties.’

Some businesses may prefer to delay their Christmas celebrations until the new year but they should still be able to treat the costs subject to the £150 a person limit as potentially a tax-free reward for staff.

Mr Salter added: ‘Christmas hampers are an alternative...