The Business Exchange Swindon & Wiltshire Edition 28: Dec/Jan 2016/17 | Page 11

Don't get carried away in the season of good cheer With Christmas looming, and generosity of spirit in the air, it can be tempting for employers to be more bountiful than usual towards their staff. But according to the experts at Swindon accountancy firm Regulatory Accounting, getting carried away could land companies in trouble with HMRC. Richard Mathews, RA managing director, says there are rules which companies need to stick to, including those governing staff entertainment allowances. “The maximum spend for enhanced allowances is £150 per employee,” said Richard. “Anything over that is subject to tax. But that £150 is for the whole year, not just the Christmas party. If your office party involves laying on a coach, or accommodation, or a free bar then that £150 will quickly be reached.” “Employers should email their staff and remind them that at any function they are representing the company, and so should behave accordingly,” she said. “It is important to also offer non-alcoholic drinks and food, and not to allow any under-age drinking.” Regulatory Accounting may be having a celebration of its own this Christmas, having completed its first highly successful year in business. Jon Lacey, accounts director at RA comments. “We’ve already grown to a seven strong team, with plans to double that by the end of 2017” “Our message of ‘keeping it simple’ is hitting the mark with clients, who are enjoying the combination of skilled accountancy with an honest, open, straightforward approach” adds Jon. Richard added there are also tax rules governing the giving and receiving of gifts, including cash and vouchers. Although it is generally free to receive a gift from an employer, client, or supplier, this needs to be “trivial” in HMRC’s eyes. For the donor, the gift is non-tax deductible. “And there are also complex rules governing gifts to a third party – for example, giving to a supplier’s employees – so companies really need to seek advice first.” Victoria Sas is an HR consultant at RA, who offers HR support to businesses. She also had some words of advice for employers, ahead of the Christmas party season. She said employers should ensure they have the correct HR policies and processes in place to deal with any situations that may arise, and to make employees aware of them. HMRC’s Making Tax Digital initiative, plans for quarterly reporting and the continued roll-out of auto enrolment are all high on the agenda for next year. Auto enrolment (also known as workplace pensions) is now affecting small employers which are being drawn into the system. Richard said: “The other big issues for early next year will be the two ‘Bs’ – Brexit and the Budget – and we will be keeping a close eye on both and advising our clients accordingly.” Find out how Regulatory Accounting can help you contact the team on 01793 209 160 or by email - [email protected] keeping it simple [email protected] 01793 209 160 www.regaccounting.co.uk