As Christmas approaches it is time for the government to show some goodwill to firms employees and the hospitality industry says Blick Rothenberg.
Robert Salter a tax service director with the firm said: ‘The government should relax the rules on Christmas parties (and similar events) and increase the amount which can be treated as 'tax free' each year from £150 per employee to £300 per employee.’
He cited in support of such a change the fact that the current £150 annual VAT inclusive limit has been in place since 2003. In addition a £300 per employee limit would mean that in most cases there would be no need for employers to report any taxable benefit-in-kind charge through a PAYE settlement agreement (PSA). An effective liability of up to 107% of the core value of the Christmas party can arise...