With many companies holding office Christmas parties – and with their staff gifting items or cash to friends and family – there have been ‘far more cases where the costs may [be] more’ than the tax-free limit, UHY Hacker Young has advised.

Ian Dickinson, tax director at UHY Hacker Young, said: ‘We are seeing far more cases where the costs may work out at marginally more than £150 a person. This is an easy target for HMRC as it receives more tax while not having to pursue many employees for relatively small amounts.

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