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Is the Christmas party a taxable benefit?

Shared from Tax Insider: Is the Christmas party a taxable benefit?
By Sarah Bradford, December 2023

Sarah Bradford highlights some tax traps to avoid when providing staff with a tax-free Christmas party. 

Employers often provide staff with a Christmas party. When planning the event, it is important to ensure that the tax implications are considered alongside the venue, the entertainment and the food.  

While the tax legislation does contain an exemption that allows certain events to be provided without a tax bill accompanying any post-event hangover, the exemption is conditional on certain conditions being met. This article aims to explain the conditions, and to highlight traps that may catch the unwary. 

Nature of the exemption 

A tax exemption is available for annual parties and functions which are provided for an employer’s employees generally, or those at a particular location.  

Where only one such event is held in the tax year,

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