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Hello
Just answering a question about add backs to the trading profit for Ltd Companies. In this example the company spent £200 a head on a staff party.
I made an adjustment to add this back as (disallowed) it exceeded £150 a head the annual limit, which I read over the years was the limit for annual parties for staff per head.
And also read if it exceeded the limit the whole amount was disallowed. Has this rule changed recently I can find little on it in the manuals or lectures. Is my information wrong.The answer to my text book question said it was all allowed.
thanks
You are confusing 2 separate rules – if you look in the OT notes and probably on the lecture for Chapter 9 – Employment Income – section 6 on exempt benefits you will see that the 150 rule is an employment income issue NOT an adjustment of profit issue! Entertaining own staff is allowable in the business adjustment of profit.
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