Christmas Party or Bonus?
It’s party time and whether you love or hate them, this time of year is great for getting out together with your colleagues, celebrating the festive season, relaxing with people you don’t normally spend time with and reflecting on another years hard work…OR IS IT ?
A lot of planning goes into organising parties and often some months in advance, with many Companies trying to do something special or unique. The task isn’t an easy one, with Employees differing needs or desires having to be considered, including travel and cover arrangements, with larger Companies sometimes having to operate shifts or often needing to organise several parties.
It is understandable that whilst finances are always under pressure at this time of year, for some individuals, this may be the only works do they get to attend, and the estimated amount spent over the country is in the £billions, with surveys indicating that the ‘Works Party’ spend is approximately £100 per Employee, yet our recent online survey has shown that a significant percentage (71%) of staff would rather have the cash !
The counter to that is that any Bonus’ paid to employees is subject to Tax and NI at their appropriate rate of tax, so any cash alternative would need to be significant enough to motivate and raise moral, otherwise it will appear as no more than ‘a token gesture’. It is also important to remember from an Employers NI liability perspective, that there are a HMRC savings, as long as the party is less than £150 per employee (Including accommodation, travel, food and entertainment costs)
Peoples preference will always vary significantly, but our survey clearly confirms (82%) that a well planned ‘Works Party’ continues to be a great moral booster, rewarding hard work and is a genuinely positive way to celebrate together as a team and ease merrily into the Christmas break……