Let us take the stress out of Self Assessment
Get your tax return sorted by experts for only £200 £100+VAT!
Take the stress out of Sole Trader Accounting, for just 1%+VAT of your money earned. No monthly subscriptions! With CrunchONE
Get 25% Off Crunch Pro and Premium for the first 3 months!

Save your seat! Live e-commerce webinar

Register and soak in the wisdom from top industry leader! May 23, 2024 1:30 PM

Claiming tax exemptions for company summer parties

Crunch
Picture of crunch software on mobile

Professional Bio Templates & Examples

Create a compelling professional narrative for a proper, attention-grabbing introduction.
Website bios
Speaker intros
Professional Profile

July and August are traditionally when many firms hold summer parties for their employees to reward hard work in the first half of the year. HMRC allows a bit of tax relief for summer parties - same as for Christmas parties - allowing you to throw a few more sausages on the BBQ safe in the knowledge you're as tax efficient as possible.

How much can I spend?

The key figure here is £150; that’s the annual amount per head you’re allowed for social functions and parties. Bear in mind, however, this is an exemption, not an allowance. Even if you spend £151 per person, you can’t claim back the first £150, and the whole thing will be taxed as normal. If you want to claim exemption, £150 is your maximum annual amount.

Who can come?

To claim the exemption your party must be open to all employees. For the majority of Crunch clients (one and two-person businesses) this won't be a problem. However, if you're a growing business you need to ensure everyone is invited.

You can also claim tax exemption for any family members who attend.

How do I claim the exemption in Crunch?

Record the cost of the party as a Subsistence Expense in Crunch’s online accounting software and you're good to go. Don't forget to scan and upload any receipts or invoices for secure storage.

Anything else?

HMRC stipulates that the party must be an "annual event", not a one-off.

It's also important to note this is an annual maximum. If you claim £150 per head for a summer party, you cannot claim anything for a Christmas party. However, you can split your £150 exemption over a number of events; for example £75 for a summer BBQ and £75 for a Christmas party.

You can also check out our article, "Should employers fear the office Christmas party", for more information.

Save your seat! Live e-commerce webinar

Register and soak in the wisdom from top industry leader! May 23, 2024 1:30 PM
Dive into e-commerce basics
Expert industry insights
Practical tips and savvy tricks

Speak to an accounting expert

If you're unsure what level of support you need, our friendly team are on hand to help you pick the right package for you.
Self Assessment tax returns done for you, from just £200 £100+VAT
Take the stress out of Sole Trader Accounting, for just 1%+VAT of your money earned. No monthly subscriptions! With CrunchONE
Get 25% Off Crunch Pro and Premium for the first 3 months!
Share this post
Lucinda Watkinson
Head of Accounting
Updated on
August 24, 2022

Knowledge Hubs

Take control of your accounts, today

Crunch’s effective software package includes being able to talk to an expert client manager and a Chartered Certified Accountant. You can count on Crunch to make you productive and profitable.
Picture of crunch software on mobile

Professional Bio Templates & Examples

Create a compelling professional narrative for a proper, attention-grabbing introduction.
Website bios
Speaker intros
Professional Profile

Unlock Your Free Limited Company Expense Guide!

Expert Insights
Actionable Tips
Strategic Advice

Save your seat! Live e-commerce webinar

Register and soak in the wisdom from top industry leader! May 23, 2024 1:30 PM
Dive into e-commerce basics
Expert industry insights
Practical tips and savvy tricks
Pro Tip
Boost your business finances with our Ltd Company packages!

Award-winning software with support from expert accountants

Pro Tip
Take the stress out of Sole Trader Accounting

Just 1%+VAT of your money earned. No monthly subscriptions! With CrunchONE

Pro Tip
Get 50% off your Self Assessment

Get your tax return sorted by experts for only £100+VAT!

Pro Tip
Using cloud-based accountancy software to manage your finances gives any small business a big advantage!

At Crunch we provide affordable cutting-edge, easy-to-use software with real human support from expert chartered accountants. That’s probably why 81% of our clients would recommend Crunch.

Pro Tip
Did you know - you have access to a Chartered Certified accountant for free on our paid subscriptions?

Book a call with our one accountants and get your questions answered. Just £25.50 +VAT for Crunch Free users.

Pro Tip
Get 50% off your Tax Return!

Crunch’s Self Assessment service provides an expert accountant to complete, check, and file your Self Assessment for you for just £100 +VAT.

Pro Tip
Did you know - We have a free plan that is great for sole traders and limited companies?

Why not see for yourself? It’s simple and easy to use and 100% free.