A company party at your own venue + the WKR: a combination that makes smart use of what you have

The work-related costs scheme (WKR) determines how much you, as an employer, can reimburse employees tax-free. Here are the five things you need to know when you organise a company party.

1. The free margin: you have a free margin of 1.7% of the wage bill up to €400,000 and 1.18% of anything above. Use more than the free margin and you pay an 80% final levy on the amount that goes over.

The second point is the customary-use test: a staff party counts as "customary" if it deviates by no more than 30% from what comparable companies do. A party at €200 per person is normal at larger companies; at a small SME it can already be unusual. The Dutch Tax Administration looks at the facts.

Point three: the venue matters. For parties at the workplace (your own venue) some costs fall outside the free margin. Costs directly tied to normal business operations don't necessarily have to be booked as WKR usage. Think of security and cleaning. Note: this is a nuance that varies case by case. Ask your payroll administrator.

Additional benefits count towards the WKR: gifts and overnight stays alongside the party itself should be tracked separately.

Finally: document everything. Keep your invoices and note explicitly that this is a staff gathering. In the event of an audit by the Dutch Tax Administration, documentation is your best protection.

The key word is budget splitting: not all the costs of a company party at your own venue automatically have to be booked as WKR usage.

Some costs you can account for as ordinary business expenses. Those fall outside the WKR: cleaning costs after the party and energy for standard lighting. Costs of security measures that also serve normal operations don't count either. Always check this with your tax adviser: the line is sometimes thin.

Costs that do fall within the WKR: catering and entertainment. Plus décor bought specifically for the party and the hire of equipment (tables, extra chairs).

A practical example: a staff party for 100 employees at your own office. Catering: €3,500 (€35 pp). Entertainment: €1,500 (€15 pp). Décor: €500 (€5 pp). Total WKR usage: €5,500 (€55 pp). The energy and cleaning costs you book outside the WKR. Result: €55 per person of WKR usage, which for most companies sits comfortably within the free margin.

Compare that: the same party at an external venue costs €80 to €120 per person in total. And it falls entirely within the WKR. So the combination of your own venue plus smart budget splitting is both cheaper and more tax-efficient.

An office is not a party hall. But with the right approach it becomes one, at least for a night. Here are the most effective ways to turn your own venue into a party space without overloading the WKR.

Décor and atmosphere: this is where you make the difference for a few hundred euros. Mood lighting (LED strips, pendant lamps), tablecloths and crockery, flowers or greenery and a photo stand. Budget: €5 to €15 per person for a convincing transformation.

For the catering: bring in an external caterer. They bring their own equipment and know how to work the space. That way the catering feels like a real party, not an internal lunch. Budget: €25 to €45 per person including food and drinks.

On a smaller entertainment budget you still have good options: a DJ playing a set (€300 to €500) or a pub-quiz host (€400 to €700). A photo corner employees operate themselves (€300 to €500 to hire) works well too. These are the set-ups that deliver the most experience per euro.

Got more room in the entertainment budget? Then a different class opens up: a live band (€1,500 to €5,000) or a stand-up comedian (€1,000 to €3,000). A cooking workshop with a chef (€35 to €60 pp) is another strong option. These set-ups lift the party to another level without raising the venue costs.

Our rule of thumb: invest €35 pp in catering and €15 pp in entertainment. Plus €20 pp in décor and atmosphere. Total: €70 pp for a party that feels like a full event, at a fraction of the external-venue price.

The pitfall of a company party at your own venue is that it feels like an extended workday. The space is the same, the strip lights are on, the coffee machine is still there. That can be prevented.

Start by transforming the space. Cover up or move out the desks and chairs that don't belong at the party. Switch on the mood lighting before the first guest arrives. Have music playing as people come in. The first impression sets the evening.

The second element matters just as much: give employees a reason to see it differently. That could be a dress code or a welcome cocktail they mix themselves. Or an active task on arrival, or a personal welcome from the director. Something that says: tonight is different.

The structure is the part that almost always gets overlooked. A company party at your own venue needs more structure than one at an external venue, because the space has no atmosphere of its own. Start with a clear welcome, move on to catering, then entertainment and then a relaxed closing phase. Employees follow that flow naturally as long as it's clear.

Our experience: company parties at your own venue can be every bit as good as external ones, as long as you follow the approach above. The venue isn't the problem. The approach is what makes the difference.

Organising a company party at your own venue seems simpler than an external event: no venue hunt, no rental negotiations. But the planning and the on-the-day direction demand just as much attention.

Timeline: lock in the date 8 to 10 weeks ahead. Book the caterer and entertainment 6 to 8 weeks ahead. Send the invitation 4 weeks ahead. Prepare the venue (clearing, decorating) 1 to 2 days ahead. Direction on the day itself.

Bringing in an agency for a company party at your own venue pays off once the group is bigger than 75 employees. Or when you want to deliver more than nibbles and drinks. An agency handles supplier coordination (caterer, entertainment, décor) and the run sheet. Plus venue preparation and coordination on the day. That way you, as the organiser, get to be there as a participant.

Live Impact organises company parties at clients' own venues for businesses of 50 to 1,000 employees. We take on the full direction, from concept to evaluation. Our agency fee: €5 to €15 per person, depending on scale and complexity. An investment that pays for itself in time saved and quality delivered.

For many companies, the combination of your own venue plus professional direction is the best balance: low venue costs, high delivery quality.

A party that feels like a full event, at your own premises and within the WKR exemption.

Live Impact organises company parties at your own venue for 50 to 1,000 employees. From concept to delivery. Seriously fun.

Call us on 085 401 40 14 or email hello@live-impact.nl.