As we head into the holiday season this year, for some, the preparation for the annual company Christmas do have already begun.
Parties and gifts are all part of the festive fun but they can cost a small fortune. Here’s a list of the rules around entertainment expenses so you know what’s deductible and non-deductible before you fork out for your staff and customers.
1. To claim 100% of your customer gifts, keep it non-food or drink related. Book vouchers, tickets to a sports match or a personalised calendar can be claimed in full.
2. Got a staff party planned? Half your food, drink, entertainment and venue hire can be claimed in your GST and income tax returns.
3. You don’t need to pay Fringe Benefit Tax on entertainment expenses (that come under the 50% deductibility rules) unless it’s being enjoyed by staff outside of their work duties.
4. Heading to Aussie or Fiji for a fun-filled weekend with your staff? It’s 100% deductible (and they’ll love you for it!).
5. If you’re giving customers and staff food and wine for their efforts you can claim 50% as a business expense.
“Here’s a list of the rules around entertainment expenses so you know what’s deductible and non-deductible before you fork out for your staff and customers.”
6. Donating to charity this Christmas? You can deduct 100% of the cost of entertainment you provide to members of the public for charitable purposes.
7. If you’re taking your family (who don’t work for you) out for brunch to thank them for putting up with your long hours… it’s not deductible because it’s not related to generating income for your business.
8. Taking the team out for lunch? Ordering in a Christmas feast? You can claim 50% as a business expense whether you’re out of the office or on-site.
9. Top tip: If you run out of time to organise Christmas gifts for customers, why not surprise them with a ‘Welcome back to work’ prezzie in the New Year?
Remember to keep your invoices and receipts for business entertainment expenses and if you have any questions about what’s deductible and non-deductible, give us a call.
Payday filing for all employers 0 Comments From 1 April 2019, payday filing will be compulsory for all employers. Payday filing means you need to: File employment information every payday instead of an Employer monthly schedule (IR348) at the 20th of the following...
Ring-fencing of rental losses 0 Comments Residential Rental Properties: Tax Changes The Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Bill was introduced into parliament late last year and is currently in the select...
Airbnb usually a tax case on its own 0 Comments If you use Airbnb to provide short-term accommodation in your house in which you also live, the IRD’s “mixed-use asset (holiday home)” rules don’t apply and guests are not classed as boarders. Except when you list a...
Stay Up to Date With The Latest News & Updates
Join Our Newsletter
Stay up to date with all of the latest news and insights related to your business. Sign up below and we promise to only send you content