16/06/2026
Is your office World Cup party tax-deductible? or are you about to score an own goal with HMRC?
With tournament fever kicking off, it’s tempting to put the pizza and beers on the company card. But before you do, you need to know how the taxman views the bill.
Employee entertainment is a fully allowable business expense, but without the right structure, your casual match screening could leave your staff facing an unexpected personal tax bill.
Here is how to keep it 100% tax-free:
1. The Annual Function Exemption (£150/head): Rebranding your annual summer bash as a World Cup celebration works perfectly—as long as it’s open to all staff and stays under £150 per person (including VAT). Drop over by even a penny, and the entire amount becomes taxable.
2. The Trivial Benefits Rule (£50/head): Just want a spontaneous afternoon viewing with pizza? If it costs under £50 per employee, isn't a reward for performance, and isn't cash, it's completely tax-free for them and deductible for you.
3. The Danger Zone: If you host a lavish one-off party that doesn't fit these rules, you’ll need a PAYE Settlement Agreement (PSA) to pay the tax on your employees' behalf.
Don't let a celebration turn into a compliance headache. Read the full guide on our website linked in the comment below.