2020 has without a doubt, changed the way we work and live and unfortunately another casualty of the Covid-19 pandemic is the traditional works Christmas party.
With most areas in the UK still under restrictions, businesses are looking for alternatives to their usual festive celebrations.
A Virtual Celebration
Some businesses are opting for a virtual celebration, and HMRC have confirmed that the costs associated with virtual parties can be treated in the same way as a traditional party.
In summary, the expenses incurred by hosting a virtual event (eg entertainment, refreshments etc) will be exempt from tax and national insurance, providing the normal conditions have been met.
Postpone the Party
It is also important to remember that the exemption provided by HMRC is not limited to Christmas Parties, and can actually be applied all year round (so long as the event takes place in the same tax year and meets the same conditions).
Therefore there is also the option to postpone your event.
For more information from HMRC on annual parties/social functions, click here.
Keeping Track of Expenses
Whatever option you choose, increasing numbers of expense claims over the festive period need to be effectively processed and records kept for HMRC.
MyExpenses offers a effective solution which will minimise the administrative burden, and with our 2 months free access offer still available, the festive period may be the perfect opportunity to see how easy expense management can be.