"started to go towards free tea and coffee but this was stopped by HMRC"
That sounds like a cover story some accountant made up to justify penny pinching. I've never heard of stuff like that being taxed.
That sounds like a cover story some accountant made up to justify penny pinching. I've never heard of stuff like that being taxed.
Yes, the company has to pay tax over the free food we give our employees because it's considered part of their pay. In the grand scheme of things: big fucking deal.
It's cool in a larger company where you have a well-stocked cafeteria where you can buy good food at heavily subsidized prices.
But in small companies this micro bean counter attitude in order to avoid taxes is actually more demotivating and divisive than not providing free food at all. Especially if you're in the middle of the city and people have dozens of options to go out for lunch.
Still much less hassle-free if you ask me.
And HMRC have form in this area when the company had a high level query about some thing they wanted to implement HMRC said no - So the CFO implemented profit related pay which reduced the tax take as a fuck you to the taxman.