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Virtual Works Christmas Parties Exempt from Tax and NIC

by | Nov 26, 2020 | Press Releases

There’s good news for those businesses who are hosting their firm’s Christmas parties online this year due to Coronavirus restrictions.

It has long been known that the cost of Christmas parties up to £150 per attendee (including non-employee guests) are exempt from tax and NIC.

With Christmas parties cancelled this year due to Coronvirus restrictions, many firms are hosting virtual parties for their teams.  However, those companies were left wondering whether the cost of hosting such events – particularly those which involve sending party boxes to team members at home – would be exempt.

The good news is that HMRC have now confirmed that the cost of providing food, entertainment, equipment and other expenses which may be incurred in hosting a virtual event, will be exempt, subject to the normal conditions of the exemption being met.

If you are considering hosting a virtual Christmas party and would like further detail on the rules please contact our tax team

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