Is the company Christmas Party considered a Benefit in Kind?

Many employers like to organise a Christmas party for their staff in December. The good news is that the cost of the party (including drinks) is not a taxable Benefit-in-Kind once the expenses are reasonable and the party is available to all employees. This is also the case for an online Christmas party.

A benefit-in-kind (BIK) is any non-cash benefit of monetary value provided to an employee/director by an employer. The benefits have monetary value, so they must be treated as taxable income.

It is also worth noting that the cost of the Christmas Party for employees is a deductible expense.

Another way to reward your staff at Christmas is through the Small Benefit Exemption Scheme. Under the Small Benefit Exemption Scheme businesses can give employees, including directors, up to €1000 once a year completely tax-free.

 

Date published 18 Dec 2019 | Last updated 1 Nov 2023

This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.