The following Employment Tax guidance note Produced by Tolley in association with Philip Rutherford provides comprehensive and up to date tax information covering:
A large number of employers will provide canteen or meal facilities for their staff. The provision of this benefit can take a number of forms, including through subsidised canteens, meal vouchers or free meals. Additionally, some employers provide lunch allowances in the form of cash allowance.
Depending on the circumstances of the benefit, it will attract a different range of PAYE, NIC and reporting requirements. Employers enjoy a large number of exemptions from the charge to tax and will be discussed in this guidance note.
Canteen meals enjoy a total exemption from tax, NIC and reporting if a number of requirements are met. These are found in ITEPA 2003, s 317 and include:
the meals should be in a canteen
on the employer’s business premises
not provided as part of a salary sacrifice arrangement
Therefore, an employer can provide meals offsite as long as the first requirement is met. HMRC defines a canteen as something which is not a restaurant, public house or café. It will generally be clear what constitutes a canteen, particularly when it is onsite. If there is any doubt as to whether an offsite premise constitutes a canteen, approach HMRC for a pragmatic resolution. Employers can approach their Customer Relationship Manager or Customer Coordinator in the case of larger employers or their local PAYE Office in other cases and discuss their individual circumstances.
In practice a group of employers on a trading estate may group together to pay for a canteen for all of their employees. In this insta
**Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason.
Access this article and thousands of others like it free for 7 days with a trial of TolleyGuidance.
Read full article
Already a subscriber? Login
IntroductionUK tax must be withheld on UK payments including:•interest•royalties•rental incomeWithholding tax may be reduced under double tax treaties (DTT) or European directives, both of which may be subject to making a formal claim.This guidance note outlines the rules for UK withholding tax, and
Time for paymentTwo statutory rules apply on death:•tax is ‘due’ six months after the end of the month of death and carries interest from the ‘due’ date until paidThere is a possibility of payment by instalments, but this applies to certain types of property only ― see the ‘Availability of
Duty to prepare trust accountsUnder the laws of England and Wales, trustees have a duty to account to the beneficiaries for their financial administration of the trust fund. This duty is established by a substantial body of case law. In the case of Armitage v Nurse, Millett LJ stated:“Every
This guidance note provides an overview of what conditions need to be met before a business is entitled to treat VAT incurred as input tax. This note should be read in conjunction with the other notes in the ‘Claiming input tax’ subtopic. For a flowchart outlining the procedure for claiming input
To view our latest tax guidance content, sign in to Tolley Guidance or register for a free trial.