Corporate events are an excellent way to build teamwork, boost employee morale, and create a positive atmosphere at work. Besides the benefits associated with integration and relationship building, there are also specific financial advantages that these events can offer.

5 reasons to host a corporate party:

  1. Deductible Costs: You can include the costs of the corporate event in the company’s operating expenses. You can spend up to £150 per employee, covering meals, travel, and accommodation, without exceeding the limit.
  2. Double Benefits for Partners: This means you can also deduct an additional £150 for each partner that an employee brings to the event. For example, if an employee brings their spouse, you can deduct an extra £ 150 from your taxable income.
  3. Tax Reduction: The costs of corporate events can be deducted, contributing to a reduction in the company’s corporation tax.
  4. Improved Workplace Atmosphere: Corporate events, valued by employees, can lead to better identification with the company and increased loyalty. This inspires a positive work environment and motivates employees to contribute more.
  5. VAT Recovery Possibility: If your company is registered for VAT, you can seek to reclaim VAT on invoices related to organising the event. This can significantly reduce the overall cost of the event.

Important rules for organising corporate events:

  • Strict Budget: The cost per person cannot exceed £150 – exceeding this limit even by a penny means the entire amount becomes taxable. This means that if you spend £ 150.01 per person, the entire amount spent on the event becomes taxable, not just the excess amount.
  • Limit for All Events: If you organise more than one event per year, the total allowable cost per head cannot exceed £150.
  • Expense Documentation: It’s crucial to keep all receipts to take advantage of the deductibility of these costs. This empowers you to be in control of maximizing the benefits of corporate events.
  • Event Accessibility: The event must be open to all employees, not just a select group, unless the company consists solely of directors.
  • Actual Execution: The event must actually take place; it cannot merely be planned.

Corporate events are not just an opportunity for celebration but also an effective business tool that, if properly managed, brings benefits to both employees and the entire company.

Wondering how to organise a corporate event that is not only memorable but also financially beneficial? Contact us! We offer professional advice!

Mrs Magdalena Jarza
42 Woodford Green Road
Acocks Green
B28 8PL

Tel: 07834 629 226