‘Tis the season to be jolly!
Be sure to plan ahead and consider the FBT implications of providing Christmas parties and gifts.
When planning your Christmas party list and checking it twice, consider:
• how much it costs
• where and when it is held – a party held on business premises on a normal work day is treated differently to an event outside of work
• who is invited – is it just for employees, or are partners, clients or suppliers also invited?
Christmas presents or gifts may also attract FBT. You’ll need to consider:
• the amount you spend
• the type of gift – gifts of wine or hampers are treated differently to gifts like tickets to a movie or sporting event
• who you are giving the gift to – there are different rules for employees and clients or suppliers.
Don’t get your tinsel in a tangle this festive season, start planning now for how much FBT you will have to pay on top of the costs of the function and gifts.
Speak to the Harris Black team if you would like to know more.