It seems that HMRC have heard about our disappointment with Christmas parties being cancelled this year…
The Employment Income Manual EIM21690 has been updated to incorporate the news that virtual events can be included when considering the £150 per person benefit in kind exemption for annual functions.
The event should be an annual event which is made available to all employees at a cost of no more than £150 per head.
An example which HMRC have included in EIM21691 is as follows:
A company holds one annual function in a tax year and does so virtually using IT. All employees are invited and each is provided with a hamper consisting of some food and drink to be enjoyed by the attendees during the party. The total cost per head is £100 which is within the £150 exemption and so the exemption applies.
Let’s get Zooming!