Charles13

I am aware that the staff entertaining limit is £150 per head for the year and that if this total is exceeded then the whole entertaining amount becomes taxable.
I am also aware that this limit may be split over the year between different events
The issue I have is that we have a summer party and a Christmas party . the summer party came to approx £ 100 per head so I am a bit concerned over the cost of the Christmas party .
This leads to 2 quesitions ,

1. if we exceed this amount I presume the company and enter into a PAYE settlement agreement for total amount of tax due rather than have to use individual employees P11ds?
2. Also how is the figure per head calculated , is it for the entire company irrespective of how many attend the event . So for example in my company we are 20 employees , if only half the company attend an event is the tax limit for the year still 3,000 irrespective of who attends or is it done by head .

Hopefully that makes sense !