Ease the tax rules for office Christmas parties

As Christmas approaches it is time for the government to show some goodwill to firms employees and the hospitality industry says Blick Rothenberg.

Robert Salter a tax service director with the firm said: ‘The government should relax the rules on Christmas parties (and similar events) and increase the amount which can be treated as 'tax free' each year from £150 per employee to £300 per employee.’

He cited in support of such a change the fact that the current £150 annual VAT inclusive limit has been in place since 2003. In addition a £300 per employee limit would mean that in most cases there would be no need for employers to report any taxable benefit-in-kind charge through a PAYE settlement agreement (PSA). An effective liability of up to 107% of the core value of the Christmas party can arise when...