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A HMRC "loophole" is handing people a £150 tax-free boost for Christmas . Accountant Rachel Harris has described the loophole as "the £150 party rule that no one uses properly."

She says: "Most directors don't actually realize that HMRC really encourage you to throw a Christmas party. As long as you follow one rule, every limited company gets a £150 per head allowance for staff events that is completely tax free, that includes the food, the drink, the entertainment and even the travel home.

"But if you go one penny over 150 pounds per person, the whole thing becomes taxable." She went on, adding: "The party must be open to everyone on the team, not just the directors".

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She continued:

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