ATT Budget Representation - Annual parties and other social functions

The ATT has submitted an Autumn Budget 2025 representation on annual parties and social functions.

In this submission, we have called on the Government to increase the tax exemption for annual parties and social functions, which has remained at £150 per head (including VAT) since April 2003.  We believe that the exemption should be increased to better take account of the cost of annual staff functions for employers.

Our recommendation is that the exemption should be set at a level that allows employers to organise an annual social function to provide recognition to all employees generally, without incurring a tax liability.  We have suggested this should be increased to at least £200 per head (including VAT).

To avoid the exemption being eroded in future, we feel that it is important for the value of the exemption to be reviewed regularly, with the intention of it being increased at least every five years.