Christmas Entertainment – will BBC give you more for your money than the tax man?

Paula Veysey Smith • 8 December 2018
The answer to this question is probably yes, even though there’s no Dr Who special this year!

Rules on entertainment haven’t really changed that much.  Any entertainment that does not involve staff is not deductible for tax purposes; you can still put it through your books but at the end of your company year we become the Christmas Grinch and remove it from the tax return.  However, if you do treat your favourite client to a Christmas meal at least you can have a nice evening out without having to pay for it personally which will save on your personal tax.

However, staff entertaining IS allowable as a business expense but there are some rules to follow.  You can claim food, drink, entertainment and other incidental costs such as travel and overnight accommodation.  However, before you get carried away booking that James Bond theme night in central London that you’ve always wanted to do remember you only have an allowance of £150 per head inclusive of VAT per year.  Provided that limit is not exceeded you can do any number of parties during the year.  A reasonable Christmas do and a summer BBQ will about use that up.

What if you want to give gifts?  Well, any gifts to clients are only allowable as a tax deduction if the total cost to one individual is less than £50, the gift has some relevance to your business and isn’t food, drink or tobacco; lucky clients though if that is the industry you work in!  So my lucky clients will be receiving an M:Power Calculator this year.

Finally, what about staff?  As long as what you give them is deemed a trivial benefit, which means it must cost £50 or less and not be part of their contract or a reward scheme.  So some good news to end with,  a bottle of wine, some chocolates or even a small turkey are likely to be exempt.

So, for £150.50 you can buy your TV license and enjoy hours of entertainment over Christmas.  I guess after the James Bond theme night recovering in front of the TV may be just what you need!

HMRC mileage rate increase 2026 -- car dashboard representing business travel costs

HMRC Increases Mileage Rate to 55p Per Mile

by Paula Veysey-Smith • 5 June 2026
HMRC has increased the Approved Mileage Allowance Payment rate from 45p to 55p per mile for the first time in 15 years. Find out what the new rates mean for employees, directors and self-employed individuals from 6 April 2026.

M is for Measurable

by Paula Veysey-Smith • 31 May 2026
You've made your goal specific. Now how do you know you're actually getting there? The answer is in the M. "The more you can define your goals, the more likely you are to achieve them." Last time we looked at S for Specific — turning vague wishes like "I want to get fit" into something concrete and actionable. If you missed it, go back and start there, because everything builds on that foundation.  Now we move to M for Measurable. And this one is just as important, because a goal without a measure is still just a wish.

S is for Specific

by Paula Veysey-Smith • 3 May 2026
Your New Year’s resolutions haven’t failed, they just need a sharper edge. Here's how one simple shift can change everything. “We make New Year's resolutions — let's call them goals. But they can be a bit vague. The way to make them happen is to actually define them better.” It's that time of year when those bold January intentions have quietly faded into the background. "Get fit." "Lose weight." "Grow my business." Sound familiar? You're not alone — and more importantly, you haven't failed. Your resolutions just need a better framework.

MTD for Income Tax Is Here: What It Means for You

by Paula Veysey-Smith • 13 April 2026
HMRC’s new system Making Tax Digital for Income Tax Self-Assessment has now arrived! This isn’t just a regulatory update. It’s a shift in how your records are kept, how often you report, and what you will need to do throughout the year. What’s changing for you: Under MTD for Income Tax, if you’re a sole trader or landlord within scope: You’ll need to keep digital records Quarterly updates will need to be digitally submitted to HMRC An End of Period Statement (EOPS) will need to filed A Final Declaration will be needed to finalise your tax position for the year In short: instead of one annual deadline, your tax reporting becomes a year-round process. Why using compliant bookkeeping software is now essential? To meet MTD requirements, HMRC requires fully digital record keeping and submissions . Manual spreadsheets alone are no longer sufficient You’ll need to use MTD-compliant bookkeeping software Sending your accountant paper records or incomplete information will cause delays The upside (it’s not just compliance) While MTD is mandatory, it also brings real benefits: Clear visibility of your tax position throughout the year Better cash flow planning Fewer surprises at year-end What support do you need to navigate this new system? The support of qualified accounting professionals is now more necessary than ever. We don’t expect you to navigate this alone and here’s how MPower Accounting can ensure that you not only comply with, but thrive under, this new reporting requirement. We’ll help you choose and set up the right software We work with trusted platforms such as Xero, QuickBooks, FreeAgent and others. We’ll recommend what fits your business best and get everything set up correctly. We’ll ensure you stay compliant Review your records regularly Submit your quarterly updates accurately and on time Handle all year-end submissions We’ll take the stress off your shoulders With the right system in place: Your records stay up to date automatically We can spot issues early You avoid last-minute pressure and surprises All we’ll need from you to make MTD work smoothly, is access to your chosen bookkeeping software, regular uploaded receipts so we can keep records current and a little of your time when there are questions. The more up-to-date your records are, the more value and proactive advice, we can provide. Your role is simple but important. Letting us take the strain of compliance will save you time and cause significantly less stress, enabling you to focus on what is important, that is running your business successfully. Next steps If you haven’t already: Speak to us about getting set up on MTD-compliant software Let us review your current bookkeeping process Make sure you’re ready for quarterly reporting
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