Skip to content

Entrepreneurs Panel

Richard O'Sullivan
David Pollock
Charlie Mullins
Jennie Johnson
Laura Tenison
Jeremy Roberts
Brian Hay
Tony Caldeira
Michael Oliver
Steve Purdham
Debbie Pierce
Julie Meyer

Tax and spend party

Employers have no need to be a scrooge this year as staff Christmas parties are potentially tax-free, accountants says. Companies are allowed annual taxfree expenditure on staff entertainment of up to £150 per employee.

The £150 not only covers food and drink but also accommodation and transport home. And workers can even bring partners as long as the total cost per couple does not exceed the £150 limit.

The tax-free limit applies for a tax year, so bosses can put on a summer party and Christmas dinner if they want, providing the total cost is no more than the £150 per worker limit. However, if employers go just one penny over the limit, the full amount spent will become liable to income tax and National Insurance (NI) for both employee and employer.

Meanwhile, gifts for employees are taxable. Cash presents, such as Christmas bonuses or vouchers redeemable for cash, will have to have tax and NI contributions paid through the PAYE system.

But bosses who give staff high street gift vouchers can pick up the tax bill on behalf of their employees by setting up a PAYE Settlement Agreement with their tax office.

  • Kathryn Parsons, co-founder of Decoded, started with little more than faith and determination, but four years later it’s grown into a global business. Ahead of her appearance at Accelerate 2015 in...

  • Author, writer and marketer Ryan Holiday on how entrepreneurs need to interpret failure.

  • Sue Vizard, business coach and author of Jump Start: The Start-up Book for Your Dream Business, looks at some of the questions solo entrepreneurs should ask themselves.

  • Ian Wright, founder and chief executive of, is bringing together SMEs and NEDs - without the hefty recruitment fees.

  • Former professional golfer turned entrepreneur Colin Stevens has had a busy 18 months. The Better Bathrooms founder has increased turnover at the firm, secured a multi-million pound investment and...

Five Minutes With

David Hughes sums up his entrepreneurial career to date thus: four spectacular successes and two failures. He founded the sports retailer Allsports and achieved turnover of £180 million before a vicious price war meant decline, administration in 2005 and a sell-off to rival JD Sports.

It took Richard Shonn, managing director of 151 Products, three years to find a warehouse big enough for his requirements.