IT’S BEEN a difficult 12 months for companies in recession-hit Northern Ireland but thanks to a little help from the UK’s Revenue and Customs there may be a chance for businesses to share some festive cheer with their workers.

Northern Ireland firms who want to throw a Christmas party can spend up to £150 tax free on each employee to enjoy food and drink, whether it is a warm sausage roll and a lukewarm glass of wine by the tree in the office or a slap-up meal in a top-rated establishment.

It’s been dubbed locally as the Santa “clause”.

The tax exemption can cover entertainment, accommodation, and transport home, if the employer picks up the tab for these costs.

Big-hearted bosses just have to abide by the Revenue and Customs’ other clause which kicks in if companies spend even a single penny more than the allocated £150 per employee.

According to Seán Lavery, a partner with the accounting and business advisory firm BDO Northern Ireland, companies who do not get their sums right could end up footing the entire bill for the Christmas bash without any tax breaks to ease the after-party headache.

Mr Lavery said businesses in the North should make the most of the tax perk, which he believes is a nice way to reward staff for all their hard work during the year.

But when it comes to encouraging Christmas celebrations among work colleagues across the Border it’s more a case of “Bah! Humbug!” from the Revenue Commissioners.

A spokesman for the tax office said it does “not have a legislative provision for a similar exempt amount per employee” for tax-free festive get-togethers.

“The topic is dealt with on an administrative basis,” the Revenue Commissioners said.