Workplace canteens “sacrificed” - Mazars - United Kingdom
Workplace canteens “sacrificed”
The Chancellor announced changes to a specific tax exemption relating to the provision of free or subsidised meals in a canteen at or on the employer’s business premises where provided in conjunction with a salary sacrifice or flexible benefits arrangement.
The revisions will remove the tax exemption in circumstances where employees are in effect using a designated amount of their gross remuneration to fund the purchase of food and drink at work.
The proposed changes will remove the exemption where linked to the use of salary sacrifice/flexible benefit planning arrangements and consequently employers who have put such an arrangement in place will have to consider unwinding them.
The exemption as it applies to the provision of free, or subsidised food not connected with either a salary sacrifice or flexible benefits arrangement will remain unaffected by these changes.
Furthermore, the exemption of 15p per working day applicable to Luncheon Vouchers will also remain unaffected.
These changes are being introduced from 6 April 2011.
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