This is a bit of strange one for contractors and freelancers but an annual event, usually a Christmas Party, is an allowable business expense for the company as long as the following conditions are met:
Business entertaining is NOT a tax deductible expense. You SHOULD claim for any such entertaining in your bookkeeping spreadsheet however the cost will not be included when calculating the taxable profits of your company. It therefore does not reduce your company’s tax liability.
This information is for general information only. We take no responsibility for any action taken or refrained from in consequence of its contents. Always seek our professional advice specific to your circumstances before acting.