Corporate retreats offer huge benefits for team building and professional development. They enhance an employer’s value proposition, increase retention and boost engagement. However, the tax implications of these trips should not be overlooked. Understanding which expenses are deductible and what constitutes a taxable benefit for employees is crucial for compliance- and maximizing tax deductibility- all while having fun!

Company Tax Benefit
Corporate retreats are tax deductible if they are incurred "wholly and exclusively" for business purposes, such as enhancing skills, strategic planning or expanding business operations. When retreats blend business activities with leisure, only the clearly identifiable business-related expenses are deductible.
For example, if a marketing firm organizes a retreat costing £75,000 that comprises travel costs, seminars and group activities, the entire £75,000 may be deductible. Corporate retreat providers, such as Get Lost, who curate transformative journeys for organizations, recommend working closely with HR and tax teams to ensure the retreat aligns with both business goals and tax motivations. A good provider will offer an analytical quote of what each retreat includes such as meals, accommodation, transfers, workshops and team-building activities, helping companies plan retreats that tick all the boxes for decision-makers.
Employee Tax Benefit
Costs related to training that directly enhances job performance or qualifications are exempt from being taxed as employee benefits. For instance, a healthcare company offering a first aid certification course during a retreat can treat these expenses as tax-exempt.
At Mouktaris & Co, tax team advises on how best to segregate, or combine, training and leisure activities to create a tax-deductible corporate retreat. For example, team-building activities designed to improve workplace efficiency and cohesion, such as structured problem-solving workshops, can be tax-exempt if they are professionally structured and integral to the retreat’s purpose.
Meals provided during training or work-related events are typically not taxable benefits, although extravagant banquets or special events could trigger tax liabilities. However, “blowing out” on high-end expenditures might not be taxable at all if they align with the company’s standard practices. Take, for instance, the lavish “billionaire summer camps" held by Waystar RoyCo in the hit series Succession- a prime (albeit fictional) example of how extravagant events may avoid being taxable if they fit within the organization’s usual way of doing things.
Travel expenses for attending a retreat focused on work-related training or meetings are generally tax-exempt. Other expenses, such as accommodation, venue hire, and equipment, must be evaluated individually.
Summary
Corporate retreats often involve a mix of deductible and non-deductible expenses. By carefully planning a retreat that meets the needs of both HR and tax teams, companies can maximize efficiency- whilst ensuring employee satisfaction is all but guaranteed! In Get Lost we make sure that we approach your retreat design taking into consideration such details.
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