Do my staff have to pay tax if I pay for their Christmas party?

A group of people having fun at a christmas party

October 12, 2023

Now that the nights are drawing in, thoughts are turning to the staff Christmas party. If you’re one of those generous employers who pay for the staff festivities, will you give the team a tax headache?

The good news is that as long as the cost is under £150, there are no tax implications to spoil the party. There are a few things to consider

  • The £150 includes the total cost, the event, drinks, food, transport, and accommodation.
  • The party must be available to all or all connected staff. 
  • You can split the £150 between multiple events during the year, not just a Christmas do. But if you exceed the £150 on the second event, tax is due on the total cost.
  • If tax is due, the employer can arrange to pay the tax on the employees’ behalf with HMRC.

As always, please get in touch with any specific questions.

You May Also Like…

HMRC Helplines to close again

After the trial last Summer, HMRC has announced an even longer and far-reaching closure of its telephone helplines...