SME owners and decision makers are attributing the Labour government’s new budget as the reason for their scaled-down Christmas festivities this year, research suggests.
Even though Christmas celebrations are often considered one of the best working days of the year, smaller businesses plan to reduce their festivity spending by 10%.
Over half of SMEs believe that festive celebrations play a crucial role in boosting team morale, but decision makers admit they’re having to make cutbacks this year in an attempt to save on costs.
Two thirds are determined to host a successful event for their company this year, with 45% stating it’s because their staff deserve a reward but the average SME plans to allocate just £1,353 for their end-of-year celebrations, equating to just £108 per employee.
However, it’s not just the pressure from the Budget that has added strain to finances. Increased supplier costs (41%), lower demand for services (36%) and high taxes (33%) have also prompted businesses to identify areas where they can reduce expenses.
Not to mention rent increases (30%), winter fuel bills (28%) and having more employees to pay for (26%).
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What 53 % of SME’s didn’t know is that they can claim back £150 per head in tax for their festivities.
A spokesperson for business account company, ANNA, who conducted the survey said: ‘First step is keeping all your receipts for party expenses, and keeping track of what you are spending per employee to ensure you make the most of this party perk, without over spending – or it becomes taxable.”
“It’s claimable at the end of your company’s financial year, when you do your accounts and file them with HMRC.”
Two thirds are resolute in their determination to pull off a successful company event this year, as they believe their employees deserve a treat but this year’s festivities will see a shift from live bands and Michelin-starred dining to more toned-down activities like gong for a simple meal out and or out for drinks.
The spokesperson added: “ “It’s a fun time of year but Christmas parties can be very expensive, and when that’s paired with a tough trading year, it’s no wonder plans are being scaled back.”
“But we hope that Christmas parties are a chance for companies to have some fun – whether it’s a lavish affair or drinks in the office.”
“It’s a real shame that so few businesses know they can claim £150 tax free per employee for seasonal parties – which would at least go some way towards making Christmas planning more achievable.”
This post was originally published on here
