Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+

Personnel Today

Register
Log in
Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+

Latest NewsFlexible benefitsPay & benefits

Employers warned over potential tax demands over staff canteen perks

by Mike Berry 12 Jun 2008
by Mike Berry 12 Jun 2008

Staff who pay for canteen meals using swipe cards credited with cash could find themselves being targeted by the tax man, a top business adviser has warned.

HM Revenue & Customs (HMRC) is considering taxing subsidised meals provided by employers to staff where the system used to administer the meals involves swipe cards credited with cash by the employer, according to business advisory firm Wilkins Kennedy.

Free or subsidised meals are commonly used by organisations as a perk and are normally a tax-free benefit. Employers use swipe cards system to make administration simpler and allow monitoring of consumption.

However, a recent HMRC statement said: “Employers should treat amounts credited to canteen accounts as earnings for the purposes of PAYE and Class 1 National Insurance contributions.”

Roger Williams, partner at Wilkins Kennedy, said that HMRC seemed to view swipe card systems, where cash is credited by employers, as a form of ‘salary sacrifice’ and, therefore, as taxable. If employees simply helped themselves from staff restaurants, or used tokens to purchase food, they would still qualify for an exemption.

Williams warned that the tax man may be able to claim six years worth of backdated tax and National Insurance from staff if it successfully challenges these arrangements.

Sign up to our weekly round-up of HR news and guidance

Receive the Personnel Today Direct e-newsletter every Wednesday

OptOut
This field is for validation purposes and should be left unchanged.

“Employees could be hit with a sizeable retrospective tax bill if these arrangements are challenged. For employers, replacing these systems will be enormously costly and create a lot of needless red tape,” he said.

“HMRC’s objection seems to be that employees are being given cash to buy food, rather than a token or simply free food itself, but the cash on the swipe card can only be used to purchase meals in the workplace, so the distinction seems a little spurious.”

Mike Berry

previous post
Power of positive thinking affects recovery from whiplash injuries
next post
Employers show caring side with lobby group launch

You may also like

Top 10 HR questions June 2025: Redundancy consultation

2 Jul 2025

Aircrew with cancer pursuing MoD for compensation –...

2 Jul 2025

Living wage pushes up spring pay settlements

2 Jul 2025

Third in north west fear ill health will...

2 Jul 2025

Government publishes ‘roadmap’ for Employment Rights Bill

2 Jul 2025

Four-day working: ‘We need to start treating people...

2 Jul 2025

Why bosses must set pay independently

2 Jul 2025

Ethnicity and disability pay gaps: Ready to report?...

1 Jul 2025

Government moves swiftly on immigration reform

1 Jul 2025

One in eight senior NHS managers from black...

1 Jul 2025

  • Empowering working parents and productivity during the summer holidays SPONSORED | Businesses play a...Read more
  • AI is here. Your workforce should be ready. SPONSORED | From content creation...Read more

Personnel Today Jobs
 

Search Jobs

PERSONNEL TODAY

About us
Contact us
Browse all HR topics
Email newsletters
Content feeds
Cookies policy
Privacy policy
Terms and conditions

JOBS

Personnel Today Jobs
Post a job
Why advertise with us?

EVENTS & PRODUCTS

The Personnel Today Awards
The RAD Awards
Employee Benefits
Forum for Expatriate Management
OHW+
Whatmedia

ADVERTISING & PR

Advertising opportunities
Features list 2025

  • Facebook
  • Twitter
  • Instagram
  • Linkedin


© 2011 - 2025 DVV Media International Ltd

Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+