Expenses and benefits: social functions and parties
What to report and pay
If any of the events you provide aren’t exempt, you’ll have to report the costs to HM Revenue and Customs (HMRC) and pay National Insurance on them.
You must:
- report on each employee’s form P11D
- pay Class 1A National Insurance on the full cost of the event
Multiple or more annual events costing more than £150 per head combined
If any of the events cost less than £150 per head, you may be able to count these costs as exempt. But you cannot do this if you’ve already used up the £150 exemption on another event. See an example of this.
However, you’ll have to report and pay on the full costs of any additional events that go over this limit, even if they cost less than £150 per head on their own.
Salary sacrifice arrangements
If the costs of the events are less than the amount of salary given up, report the salary amount instead.
These rules do not apply to arrangements made before 6 April 2017 - check when the rules will change.