WestBest
Blogger
Share this content
0
1107

Is lunch for all employees a dedutible expense

Is lunch for all employees a dedutible expense

I run a company with a few employees. There is a café across the road and I have an account with them, all my employees go there for a free lunch everyday. I settle the bill with the café at the end of each month. My previous accountant said this was deductible, my new accountant was a bit hesitant and said he'll look into it.

It's made me a bit nervous of the whole set-up, any opinions???

Replies

Please login or register to join the discussion.

18th Feb 2016 14:46

Deductible BUT

You should include the cost on their P11Ds.

https://www.gov.uk/expenses-benefits-meals-employees-directors/overview

 

Thanks (0)
By DJKL
18th Feb 2016 15:16

Buy the cafe!!!!

Buy the café to create a workplace canteen!

Thanks (0)
18th Feb 2016 15:30

Or... does the café do takeaway meals? If everybody is entitled to a meal on the employer's premises, you have an exempt benefit (as you would for the same in a canteen).

Thanks (2)
avatar
18th Feb 2016 16:30

Its takeway meals

Portia Nina Levin wrote:
Or... does the café do takeaway meals? If everybody is entitled to a meal on the employer's premises, you have an exempt benefit (as you would for the same in a canteen).

Yes, it is a takeaway and I'm pretty sure 99% of staff bring it back to the office and eat it at their desk or I have a separate room in the office where they normally go to eat.

If I'm OK claiming it for the company, is it a taxable benefit for them?

Thanks (0)
18th Feb 2016 16:37

I think they would have to deliver them for it to be exempt, I don't think employees going over the road to a takeaway open to the public and being bought a meal to bring back would qualify as exempt. It needs to either be provided on the premises or in a location reserved for the use of the employees.

Maybe I'm interpreting it wrong though, I don't know of the specific circumstances outlined being tested in tribunal.

Thanks (0)
18th Feb 2016 16:51

Meals on Wheel not Required

http://www.legislation.gov.uk/ukpga/2003/1/section/317

As long as the conditions are met, a liability will not arise.

Thanks (0)
By DJKL
18th Feb 2016 16:57

A reserved table might suffice

cheekychappy wrote:

http://www.legislation.gov.uk/ukpga/2003/1/section/317

As long as the conditions are met, a liability will not arise.

A reserved table might suffice but looks like they all have to use it ( appears can't have half returning half eating in cafe)

 

Condition C is that if the meals are provided in the restaurant or dining room of a hotel or a catering or similar business at a time when meals are being served to the public—

(a)part of the restaurant or dining room is designated for the use of employees only, and

(b)the meals are taken in that part.

Thanks (0)
18th Feb 2016 17:01

Yes but

The question is whether or not

1) (b), they are provided on the employer’s business premises 

is met by the employees buying a takeaway and bringing it back. I don't think that it is, where it's provided isn't necessarily the same as where it's eaten, is it? Am I being unnecessarily strict?

Thanks (0)
By DJKL
18th Feb 2016 17:13

"Provided"

Duggimon wrote:

The question is whether or not

1) (b), they are provided on the employer’s business premises 

is met by the employees buying a takeaway and bringing it back. I don't think that it is, where it's provided isn't necessarily the same as where it's eaten, is it? Am I being unnecessarily strict?

See what you mean and of course A-C only run with 1 b.

I think provided is fine if employer goes, collects and brings to his premises, in same way if an outside catering company was asked to deliver meals to his premises each day. The employer is always buying the takeway, he does not reimburse his staff but settles direct with cafe. But if the employee collects then yes, how is "provided" read, in a financial sense or a delivered sense.

I would tend to go with the financial use of provided- of course could think about vouchers!

 

Thanks (0)
avatar
By Alex999
18th Feb 2016 17:40

What about one man band

What about a one man band where he goes to a supermarket everyday and buys a sandwich on the company debit card and goes back to eat it at his desk?

And he's the only director/employee

Thanks (0)
avatar
18th Feb 2016 17:43

It seems you need the "help"

It seems you need the "help" of an contractor accountant "specialist" who knows the answer to that one. Well has an answer anyway........

Thanks (0)
Share this content