15:17 PM, 1st December 2011, About 10 years ago 10
Every landlord can unwrap a generous £150 gift to himself courtesy of the taxman.
Buried in tax law is a little known rule that lets every business spend up to £150 per head on a party for staff – and the rule applies to landlords as well.
If HM Revenue & Customs queries the bill, point them to Section 264 of the Income Tax (Earnings and Pensions) Act 2003 which says: “where in a tax year only one annual party or similar annual function is provided for employees…no liability to income tax arises if the cost per head of the party or function does not exceed £150”
As with all tax matters, there are some do’s and don’ts to consider:
Lucky landlords who run two businesses can run a party for each with a £150 cash limit per head per business, so any other self-employment counts.
Spouses or partners who are self-employed can also invite their landlord partners to a function as well.
Two property businesses do not count unless one is a company.
Remember to raise a toast to the kindness of the tax man as you enjoy your fine wines and dining at his expense.
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