Because nothing spreads faster at Christmas than bad tax advice… except maybe tinsel.

It’s that time of year again — Christmas parties, mince pies, Secret Santa… and of course, some truly spectacular tax myths being shared down the pub after a few pints 🍻

At Llewellyns, we hear some absolute crackers every December — so here’s our Christmas Edition of “My Mate Down the Pub”, where we unwrap the funniest, most creative, and most worryingly common festive tax myths that business owners seem to hear every year.

Let’s get into it 🎄👇

We hear it every. single. year.

“My mate says I can put the turkey through the business because I’m hosting the family and my staff…”

❌ No you can’t.
Your Christmas dinner is not a business expense (unless your staff are reindeer and your office is the North Pole).

The only allowable Christmas food/drink claim is for staff events, and even then, it must meet the £150 per head exemption rules.

Believe it or not… someone told us this with a straight face.

We respect the creativity, but—

❌ No, HMRC does not accept fictional North Pole employees.
(And if they did, we’d all be hiring elves.)

Nope!

The Christmas party exemption is separate from trivial benefits.

This £150:
✔ applies to staff parties
✔ includes food, drink, entertainment, venue
✔ covers multiple events (as long as total < £150 per head)

It does not give directors a £150 tax-free Christmas gift fund.

That’s where trivial benefits come in…

Ahh, if only.

Here’s the real rule:
➡️ Directors of close companies (most small Ltds) have a cap of £300 per tax year on trivial benefits.

Each trivial benefit must also be:
✔ < £50
✔ Not cash
✔ Not a reward for work
✔ Not contractual

So no, you can’t gift yourself a new iPhone “from Santa” through the business 🎅📱❌

Your mate down the pub might say so, but…
❌ HMRC says otherwise.

Bonuses = taxable income → PAYE + NI apply.

If you want to treat staff (or yourself!) without extra tax, use:
✔ Trivial benefits (<£50)
✔ Christmas parties exemption
✔ Non-cash seasonal gifts (within rules)

This one’s actually partly true!

✔ Business premises decorations = allowable
❌ Home decorations = not allowable
✔ If you work from home, only decorations for the dedicated office area can be claimed
❌ Your 9ft tree in the living room doesn’t qualify, even if you sometimes answer emails there 😅

Only if it’s wholly and exclusively for business use.
Gifts are not automatically allowable.

Buying yourself:

• A new laptop? ✔ If used for work.

• A new Xbox? ❌ Not unless you’re a gaming influencer.

• A hot tub? ❌ Please don’t even ask.

Every December we hear some classics, but the moral of the story is simple:

👉 If your mate down the pub says it’s tax deductible… it probably isn’t.
👉 If you want to enjoy Christmas AND stay compliant, ask us instead.

We’re here to help you navigate the festive season without surprises from HMRC in January 💙

Whether you’re planning staff parties, gifts, bonuses, or year-end tax strategy, we’re here to help.

📞 02920 624 230

📞 01443 303 230
📧 info@llewellyns.co.uk
📍 Tonypandy & Whitchurch