Accountancy and advisor firm Azets, which has an office in Grammar Street in Bradford, has shared advice for companies on how to remain exempt from taxation for their Christmas parties.

HM Revenue and Customs (HMRC) offers exemption from taxation for businesses' Christmas parties as long as those parties are open to all employees; annual in nature; and cost £150 or less per person, according to Azets.

Azets also said that a slip-up in the costing of a party could mean staff end up paying a share of costs to the tax authorities as a 'benefit in kind.'

When costing a party, the cost of the function, as well as associated costs like travel, taxis, and accommodation, should all be considered.

Costs must be inclusive of VAT, and £150 is the cost per head.

If businesses find that being taxed for functions is unavoidable, they can apply for a PAYE Settlement Agreement (PSA), enabling them to make one annual payment "to cover all the tax and NI due on any benefits that [are] minor, irregular, or impracticable to apportion between employees," added Richard Whitelock of Azets.

An HMRC 'trivial benefits' exemption could also be an option for businesses.