The Dental Grinch - Why you might need to charge your Associates to attend the Christmas Party

The Practice Manager asks:

"I've just been listening to a podcast regarding Associates attending the staff Christmas party. 

It is suggested that in order to maintain their self employed status we either shouldn't invite them to what is considered a staff benefit or we should charge them for their meal. 

The Principal has asked for your opinion as she usually pays for the Associates and feels neither of these options will spread any joy at our practice.

Your thoughts would be appreciated."

The Coach replies:

How sad that we even have to have this conversation - this woke age of ours leaves me exhausted.

I feel sure that if:

• HMRC challenged the basis of taxation for a self-employed clinician or

• said clinician tried to suggest that they had implied employment…...

  
  

......and their evidence was only an invite to a Christmas party - that a court would dismiss the claim as a waste of everybody’s time?

But who am I to second guess when, as Mr Bumble said, "the law is an ass".

The spirit of the invite is generated by the festive occasion.

Maybe 12 party invites a year would be an issue - but not this surely?

Whilst I have 100% respect for HR and legal experts - it sounds crazy.

However, let’s invoke the woke-friendly response....

"The Expert is correct in highlighting the potential tax and employment status implications of offering staff benefits to Associates who are self-employed. The key issue here is ensuring that their self-employed status isn't undermined by receiving benefits that could be construed as those typically offered to employees.

Thoughts:

1. Legal and Tax Considerations From a legal and HMRC perspective, it's prudent to be cautious about providing benefits like a free Christmas lunch to self-employed Associates. Doing so could raise questions about their employment status, especially if there are other factors in the relationship that might blur the lines between self-employment and employment.

2. Practical Solutions

   • Charging a Nominal Fee: Asking Associates to contribute a small amount toward their meal can address the issue while still allowing them to participate in the festivities. The fee could be nominal and still preserve the "spirit" of inclusion.

   • Differentiating the Invitation: Make it clear in your communication that the event is open to everyone in the practice (employees and contractors alike), but that the Associates' attendance is optional and not a benefit tied to their work.

3. Maintaining Team Spirit It's important not to let these legal concerns dampen the festive spirit or create division between team members. Transparency is key—explain the reasons behind the decision in a positive way, emphasising your wish to celebrate together while also adhering to compliance rules.

4. Alternative Solution Charging Associates feels uncomfortable, you could consider organising a separate gathering (e.g., a team drinks night) that is more informal and not tied to the business. This could sidestep the issue entirely while still fostering camaraderie."

   
   

Final Thought:

In spite of the “woke” advice above - I still think that even a nominal fee would be a party-pooper - it just feels so petty.

Me - I’d carry on as always and take the risk.

We will all end up being too scared to cross the road.

I suppose I have to cover my back by saying that you should take your own independent professional advice. 🙄