Office Christmas parties - HMRC's view
With the Christmas season upon us, it is a good time to look at the tax treatments for staff entertaining.
Whilst the cost of entertaining customers and business contacts is not an allowable expense for tax purposes, entertaining staff is allowed so long as the entertaining is for business purposes, and not incidental to other entertainment. So your office Christmas party is an allowable expense for tax purposes, however the devil lurks in the detail:
As long as the entertainment is for business purposes, any VAT suffered can be reclaimed, but it may ...