ANNA’s Business Research: How much on average is spent on a Company Xmas Party in the UK?

What will your work-do look like this year?

The puzzle is fun, but there’s a serious point behind it. We’ve just done a little survey with One Poll to find out how the UK’s SMEs are feeling about their staff Christmas party this year, and how much they’ll be spending. 

Our poll of 500 SME owners and decision-makers found that they will be spending 10% less on their festive parties this December, even though 51% think it’s the best working day of the year.

Feeling the festive pinch

Half of small business owners blame the new budget for their scaled back Christmas celebrations this year, according to our research.

Businesses that are spending less on Christmas parties are also doing so due to increased supplier costs (41%), lower demand for services (36%) and high taxes (33%).

Rent rises (30%), concerns around winter fuel bills (28%) and having more employees to pay for (26%) are other reasons why they’re scaling back plans.

HMRC’s £150/head Christmas party allowance for limited companies

Gosh, it’s tough out there! But are you one of the 53% of SME owners who had no idea they could reduce their company profits by spending £150 per head for their festivities (therefore making a corporation tax saving)? Yes, the good news is that there is a limited company Christmas Party allowance of up to £150/head if that’s the only social event the company throws annually (however many work parties you have, you can only claim £150/year in total). Which means the Christmas party is tax deductible!

Introducing our new “Party Pot”

“That’s why we’ve created a new ‘Party Pot’ in ANNA +Taxes, to help businesses set aside this money and make off-setting it against tax really easy. Our aim is always to help SMEs run as tax efficiently as possible and save businesses time and money.” 

The survey went on to find 53% think festive celebrations are important for boosting team morale.

Dinner, drinks and a DJ are the most popular options

What entertainment are you planning for your company Christmas party? Our survey found that this year 37% of respondents will be having a meal out, 28% will be going for drinks and 17% will be hiring a DJ.

Worth remembering

There is no separate food or drink allowance – it’s all lumped in together, and you claim the total spend per head (to a maximum of £150).

Other popular activities include bowling, ice skating and boat trips. 

Of those who are reducing costs, 47% will be staying in the same city to avoid transport charges and 41% will limit the amount of food and drinks per person.

Enjoy celebrating with your colleagues

It seems that even companies that have gone ‘all out’ in previous years  might be reining it in a bit this Christmas. 

We think that the key thing when celebrating is the people with you, so all you really need to have a fun time is a great group of colleagues. So eat, drink and be merry – and watch out for bears!

Did you spot them all?