Staff Parties If you are planning a Xmas party, you should be aware of tax issues. Reasonable levels of employee entertainment are an allowable cost against the profits of the business, unlike entertaining clients. As long as the annual cost is no more than £150 per person for entertainment functions, there should be no tax implications with the employees. Employers must consider all costs, which may not just be the meal, but drinks, transport etc… For those who are leaving organising their Xmas party, like some of us do with buying Christmas presents, enquire now as space is still available at venues across the UK!