I understand that HMRC will allow a company expense of up to £150 per employee, plus £150 for one guest, per year for an annual party. I also understand that it's important not to exceed this limit as the entire expense becomes taxable if the limit is exceeded.
My specific question relates to the timing of the "party" tax year. My company tax year ends at the end of October and I've made plans to move the annual party a little earlier than usual this year - to mid October. This means that two parties will appear on the company accounts for 2012/2013.
Does the "annual party" allowance, operate from the start/end of the government tax year or the company tax year? I'm sure you can imagine which answer I'd prefer.