*Just For Fun*
Christmas is usually a great time for most. A break from work, visiting loved ones and of course, a visit from the big guy.
And as if Santa isn’t busy enough, he has a lot more on his cookie plate than most probably realise (and we aren’t just talking about border controls post Brexit or sanitising his hands at every stop!).
The big red suit (Uniform)
His iconic red suit is recognisable across the world, but that doesn’t mean he can claim the cost through his business. Despite the hundreds of times we see him every year, his fluffy red suit is never branded and therefore, according to HMRC rules, he cannot claim it to be ‘uniform’.
The elves, however, could claim for the cost of laundry. We can only assume those red and green outfits are compulsory attire for the workshop, which means they can at least claim back tax relief on the cost of their laundry direct from HMRC.
The elves (Employees)
Talking of Santa’s little friends. He must be careful about minimum wage too. Not just throughout the year when the national wage increases, but when one of his workers has a birthday their pay must be considered.
Minimum wage for a 21-year-old is currently £1.75 per hour more than a 20-year-old. Oh, and let’s not get started on auto enrolment pensions for those earning over £10,000.
That is why Mr Claus uses a professional bureau, it helps him sleep better (at least for 364 days of the year!)
The sleigh (Mileage)
We know that Father Christmas is a resident of Greenland but in the UK he would be entitled to 45p for the first 10,000 miles he does and 25p per mile after that. I think we calculate that to around £80 million tax relief from Christmas eve alone!
This is of course assuming the sleigh would be viewed as a car / van for tax purposes although. We aren’t actually sure what the Co2 emissions would be on Rudolph and his friends (I think we would rather not know).
It could be viewed as a human propelled vehicle and therefore may only be able to claim bike mileage as its nearest equivalent. It depends if HMRC want to play Scrooge this year.
The workshop machinery (Annual Investment Allowance)
The revenue must be feeling particularly festive this year, so have extended the Annual Investment Allowance. This means if Mr Claus would like to buy any new machinery for his workshop, he can do so knowing he will receive tax relief on it up to £1m!
Plus, with children’s toys progressing from wooden trains to flying drones, if he is feeling especially creative, he could be eligible for a Research and Development grant for the work he is doing on bringing out this year’s must have toy!
Timing is everything!
31st January is just as important as Christmas Eve in terms of timing. I hope St. Nick has good internet over at the North Pole.
He does not want to be late submitting his self-assessment or he will get £100 fine, and for someone as generous as he, who doesn’t actually make any money (other than his Coca-Cola endorsement) he needs to watch those chocolate pennies!
Wishing all our clients, new and old, a Merry Christmas and a Happy New Year!