For most businesses the fun of the office Christmas Party is often the next Monday after the weekend when you can relive all the fun (and stories) that usually accompany this annual event.
We don’t want to ruin the Christmas spirit, but even though its fun to organise the work Christmas Party, its important to think about some other aspects to ensure your business is protected at Christmas Time – remember Santa is writing his list – make sure you are on the nice list!
You may want to consider if you’ll be able to claim a tax deduction, or need to pay fringe benefits tax (FBT) when rewarding your employees with gifts or parties this Christmas. The ATO has provided some great tips and this should help make your life easier.
For your work party consider these Christmas time tips for business:
- how much it costs – its easy for everything to add up very quickly when you add in food, beverages and gifts for people
- where and when it is held – a party at work on a normal work day is treated differently to an event outside of work on a weekend
- who is invited – is it just employees or are partners, clients or suppliers also invited? The numbers quickly add up when you start writing the list. It’s almost like a wedding, but without the family dramas!
When it comes to Christmas gifts, you’ll need to consider:
- the amount you spend
- the type of gift – gifts such as wine or hampers are treated differently to gifts like tickets to a movie or sporting event
- who you are giving the gift to – there are different rules for employees and clients/suppliers. Plus if some of your clients or contacts are members of parliament or local politicians it is important to be aware of the rules regarding gifts!
If you need any assistance with these Christmas time tips for business, contact one of our Femia Accountants Perth team and find out how you can ensure your Christmas party and celebrations are stress free – now and at tax time.