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Tax considerations for your event . . . .

  UK companies are allowed £150 a year for entertainment free of tax considerations
When the details of all travel, transfers, accommodation, and other associated or required aspects (deemed as our "Services"), that have been mutually agreed and subsequently or needing to be  arranged for you (our “Client”) we will forward you our standard Form of Agreement (“FOA") which incorporates the terms and conditions of booking. It would be most helpful if you would sign and return this to us. However, even if not signed and/or returned by you, you will be deemed to have accepted the terms of our FOA by proceeding with the Services and sending us the necessary funds in connection with the Services. This FOA will apply to all Services arranged for all persons (“Participants”) traveling or taking part in the Services provided. We have all been made well aware that the two most inevitable things in life are death and taxes! While it is 100% intended that the former never occurs on a corporate away event, sadly the latter does have implications. And the tax authorities eyes (here in the UK) will immediately light up if they hear you want to have a corporate away day. There is the annual Section 264 ITEPA 2003 exemption (see here for details) of £150 per employee that can be used, but this tends to be used up by most companies for either the annual results celebrations or the Christmas party. himselfSo if you decide to have an away day or days, it is important that you can prove and show the business-relevant content of your event. There is no point in having an AGM for an hour and then spending the remainder of the day on the golf course - unless, that is, you are a golfing equipment manufacturer who needs to test your new products out in real time. HMRC may be a bit (some, such as the satirical “Private Eye” magazine might cruelly say a lot) lax at chasing some of the huge corporates such as Amazon, Facebook and Apple, but mention “staff entertainment”, and they’ll be down on you like a ton of bricks. And in their defence, the tax and NIC (and any interest and penalties) on the total grossed up costs of these events can’t really be quibbled with where there is all play and no work involved, as this is seen as having fun at the tax-payers expense. So whether your event is  conference, training session, meeting or even the dreaded “jumping up and down on coloured-squares” team building affair, regardless of how much you feel these are vital business-related activities devoid of a tax consequence, you are very much mistaken. You must be able to show the business content of any away day or event. And to do this you will need to carefully document the itinerary planning and content.However, don't panic. Because when Maykit Events run an event, we do just this! We completely document the event for you, from the boring multi-page internal action plan we use ourselves internally, to your itineraries, meetings, business visits and even meals. What you need to do is plan your agenda (we can help you) to keep the social element to a minimum, keep copies of any presentation notes or slides you use and also any minutes, discussions or travel you need to undertake. coctail So if you are thinking of holding a post event or planning to hold something abroad, while it can be harder to argue the point that it is a required business event and not a reward for employees, it all about being sensible and honest. For example, if you import millions of pounds’ worth of goods annually form Chine, it makes commercial sense to meet your suppliers and see how they manufacture your goods every once in a while. Or if you are setting up a division abroad, it makes sense to go and visit the destination. Bear in mind it’s not just the large, fluffy events that attract the attentions of the tax man! Altogether dull things such as providing refreshments (apart from tea/coffee during meeting breaks), dragging the team down to lunch at the local greasy-spoon on the company expense sheet every Friday and even a genuine business lunch can and will all be viewed as entertainment for staff and taken as being so by HMRC. If you are aware of such costs being incurred, and there is not a significant training or business element, you have to ensure you account for the tax and national insurance contribution due on your annual PAYE Settlement Agreement (and on your workers benefit-in-kind status as well). E&OE
Maykit Events