staff discounts

are staff discounts a benefit in kind?

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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?

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Scalloway Castle
By scalloway
31st Jul 2016 10:52

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...

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RLI
By lionofludesch
31st Jul 2016 11:05

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.

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Portia profile image
By Portia Nina Levin
01st Aug 2016 10:51

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

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