Deductible Christmas Contractor Expenses: What you can claim

 In Contractors & Freelancers

Deductible Christmas contractor expenses mean you don’t have to take on the entire festive financial burden yourself.

After all, you’ve worked hard all year and deserve to mark the occasion. Christmas is also a great time to make a good impression on clients and set yourself up for success in 2018.

What deductible Christmas contractor expenses can I claim?

Let’s take a look at the key deductible Christmas contractor expenses you can claim this festive season:

1) Christmas party costs

You’re entitled to hold an annual event for yourself providing it’s also open to all staff you might employ. Many contractors choose to exercise this right at Christmas.

Providing the cost-per-head doesn’t exceed £150 (inc. VAT), you can reclaim any costs against the company. These can include food, drinks, accommodation/venue costs and transportation.

2) Gifts for staff

You can provide your staff with ‘trivial benefits’ at Christmas without reporting them to HMRC, these include things such as:

  • Chocolates/Christmas food
  • Wine (affordable)
  • Desk/office trinkets

However, any items costing over £50 need to be reported. If you want to offer a cash gift, you’ll need to put it through payroll in the usual fashion.

3) Gifts for clients

Gifts for clients can be a tricky topic. Essentially, you’re only authorised to give them if they include an obvious advert for your brand.

Even then, additional factors come into play. Your gift should not exceed £50 in value or comprise food, drink, vouchers or tobacco.

Remember these deductible Christmas contractor expenses and get ready to enjoy the festive season!

Call on 3 Wise Bears for more handy contractor accountancy tips.

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