Hi all,
Sorry for bringing this here but conflicting answers online.
Does anyone know if there is a tax free allowance for a sole trader to take his staff out for a christmas bash? Have seen online that allowance is £150 pp but some sites say its for LTD companies and some say also for sole traders…need a drink lol.
Thanks in advance.
I don’t believe this is limited to limited companies, but rather just to employers.
There’s guidance on the exemption on the HMRC website, which can be found here. There are several factors that you need to consider, but hopefully the guide should help.
There are a few accountants on the forums who may be able to shed further light on this for you.
Note: I’m not an accountant; I recommend just double checking with yours to be safe
Thanks for the prompt reply.
I have already looked at the HMRC page, does’nt say anything about sole traders with employees which is why I looked at several websites, all conflicting. Hopefully someone out there will have the answer 
Thanks Again
It simply says “As an employer”, which you are. It doesn’t mention anything about specifically limited or sole traders.
If it said “As a human being” would you need clarification of whether it means male or female humans?
Hi Lurch,
Firstly thanks for the reply…i’d like to say that it was helpful…but it wasnt, sarcasm never answers a question.
I am very well aware of what it says, as stated in my post, I have read it. I also stated that I am seeking clarification as other websites that i have visited state (including accountant sites) that only Limited companies can claim this allowance, others state that sole traders also can.
When I employ 15 members of staff I will be putting in an allowance of over 2k and want to make sure its right with pure facts, not hearsay or sarcasm.
It was meant to be more of a helpful analogy than a sarcastic reply. Obviously missed the mark on that one.
The HMRC pages linked don’t say anything about limited companies or sole traders, I obviously read that as meaning any employer could claim. The best people to ring for clarification would be the HMRC I suppose.
HI Lurch, I thought your reply was correct as to the HMRC using “Employer” meaning any type of employer, and I liked the “human being” analogy.
Hi Chris,
Other sites like “accountingweb.co.uk” are full of sarcasm and the like so I understand how you could asume that Lurch was being sarcastic but he gave you an accurate answer .
The possible conflicting info you have read could be due to the rules on taxing entertainment changing in the past.
Here is a self employed reliable article that covers office parties etc
In addition to the sole trader above, here the ltd company Expenses Guide