my employer is a bakery and currently does not offer goods to staff at a discounted price. what would be the tax implications if any, if the staff were allowed to buy goods at say 20% discount, which is the same price as offered to wholesale customers?
Replies (3)
Please login or register to join the discussion.
According to this article
"As long as the discounted price matches or exceeds the marginal cost of providing goods and/or services, no taxable benefit arises. Any company can do this - it’s not just for the big boys."
http://businessdatabase.indicator.co.uk/business_advice_directory/articl...
Stuff left at the end of the day probably has no market value in a bakery.
Otherwise, so long as it's not below cost, imho, you're grand.
Market value is irrelevant. Only the (marginal) cost of producing the goods is relevant. If the employees pay more than (marginal) cost, then there is no benefit. See https://www.gov.uk/hmrc-internal-manuals/employment-income-manual/eim21111