Poll results: Should the chancellor increase the £150 annual staff parties (or functions) limit?

The current annual limit on the provision of tax-free staff parties and events by an employer last increased from £75 to £150 in 2003. Allowing for the effects of inflation, this limit might be expected to increase to at least £243 today. Bearing in mind that many employers and employees have not been partying at all due to COVID-19, should we ask the Chancellor to increase the £150 annual staff parties (or functions) limit?

Our poll ran in the Employee Shares & Benefits section of this website and the results were pretty conclusive. 

Results:

• 45.13% voted for: Yes: increase to £243 in line with inflation, that's fair.
• 22.66% voted for: Yes: increase the benefit limit and add a new similar benefit for the self-employed too.
• 18.75%  voted for: Yes: increase by another £75 to £225, it's about time!
• 13.25% voted for: No: don't change the benefit limit.

Looking at the voting patterns, very few paid subscribers to this website voted against a rise in the benefits limits, of the No votes, these appear to be mainly by anonymous guest voters.

We will forward the results to the Treasury as a representation for Autumn Budget 2021!

The Treasury has announced that there will be two budgets in 2021. The Autumn 2021 budget will take place on 27 October 2021. The Office for Budget Responsibility (OBR) will prepare an economic and fiscal forecast which will be presented alongside the Autumn Budget and 2021 Spending Review on 27 October 2021.

Topical guides

Tax-free staff parties and events
Our Practical Tax Guide looks at the tax treatment of parties, including Christmas parties and other annual functions for staff from the perspective of the employer and their business.

Autumn Budget 2021: date announced
The Treasury has announced that there will be two budgets in 2021. The Autumn 2021 budget will take place on 27 October 2021. Make your representations now!