‘Tis the season to be jolly! But ho-ho-hold up before you start making spirits bright and rewarding your employees with gifts or parties this Christmas, as fringe benefits tax may apply when providing all the trimmings.
So you don’t get your tinsel in a tangle for your work Christmas party, consider:
- how much it costs
- where and when it is held – a party held on work premises on a normal work day is treated differently to an event outside of work
- who is invited – is it just employees or are partners, clients or suppliers also invited?
Similarly, where you provide Christmas gifts, you’ll need to consider:
- the amount you spend
- the type of gift – gifts such as wine or hampers are treated differently to gifts like tickets to a movie or sporting event
- who you are giving the gift to – there are different rules for employees and clients/suppliers..
Find out more information by clicking on the links below