Tag Archives | employee tax

Christmas parties – tax deductible or taxable?

Is it tax-deductible for the Employer? Yes.  The general rule is that entertaining is not tax-deductible, no matter how essential it is to winning business, but by exception, staff entertaining IS tax-deductible. “Staff”: in practice, the definition of ‘employees’ is extended to include retired members of staff and the partners of existing and past employees. […]

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Squeezing blood from a stone

Are you paying 46% tax on your salary?

  Many employees don’t realise just how much tax the government collects from employees. Let’s take an employee earning about £15k.  She has used up all her personal allowance, and so is in the basic rate tax band.   For each additional £100 of gross pay, this employee sees a deduction of: £20 tax £12 […]

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