The tax and advisory firm has called on the government to increase the amount that can be spent on office Christmas parties and be classed as tax-free from £150 to £300 per employee.

Blick Rothenberg states that the current VAT inclusive limit of £150 has been in place since 2003 and is ‘massively out-of-date’ and after the Covid-19 pandemic, changing the limit would also provide businesses, particularly in the hospitality sector, with some ‘much needed support’ as they continue to try and recover.

The firm also states that increasing the limit to £300 per employee per year would help reduce the overall costs faced by employers and encourage them to provide employees with a ‘genuine thank you’ for all their efforts throughout the last two years.

Sp