Christmas Parties – Are they Taxable?
Are Christmas Parties Taxable
With many companies on the countdown to their Christmas party we thought it would be worth giving a recap on the tax implications of Christmas Parties so you can concentrate on the fun to be had!
According to Revenue “Where an employer provides staff with a Christmas party, special occasion meals or other inclusive events such as a sports day for staff, a taxable benefit will not be regarded as having been provided, provided the expenses incurred are reasonable”.
It is worth noting that this is also the case where the party is held virtually. In such instances, reasonable costs include costs those that would typically be incurred in hosting a face-to-face event as well as the cost of delivering or providing food and drink to employees.
So be reasonable folks and enjoy the Christmas celebrations!
For More Christmas Related Payroll Content Read:
With 2020 coming to a close, managers will be keen to reward employees for their hard work and commitment, but a tough 2020 may have exhausted any cash reserves from which to do so. Many managers will have to carefully consider their incentive programs in light of strict financial constraints.
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