How to have a Merry and FBT-free Christmas Party
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The clink of champagne flutes, delicious spreads and the sound of celebration amongst your team. It’s Christmas party time again!
We know you’re probably busy making final preparations and looking forward to celebrating the end of the year. But don’t forget that FBT is a significant factor that’s often overlooked until tax time.
There are a few things to keep in mind when avoiding FBT on your Christmas party and staff gifts. Let’s discuss them!
Firstly, we have the $300 rule. You cannot spend more than $300 on an employee gift or more than $300 per head on a staff Christmas party without incurring FBT.
However, as these are separate expenses, if you spend up to $300 on both you will still be FBT exempt. So the box of chocolate or a small gift voucher will be fine, but the designer watch or top-of-the-line barbecue doesn’t quite work here.
Staff taxi rides to and from the Christmas party may also incur FBT. If your staff are travelling from the office to a venue, then from the venue to their home, it’s likely that only one of these trips will be FBT exempt.
If you’re yet to have your Christmas party it may be worth speaking with your adviser regarding your FBT obligations. Get in touch with our team today if you have any questions.
Wishing you a Merry Christmas and a Happy New Year from the Growth iQ Team!