Press Releases
10 December 2009
Attack on staff canteens to raise £110m per year
• May lead to the closure of many staff canteens
• Virtually no staff benefits are now tax free
The Chancellor’s decision to tax many staff meals may lead to many companies closing their staff canteens says Wilkins Kennedy the Top 25 accountancy firm.
The measures announced in today’s Pre-Budget Report will end the status of canteen meals as tax free benefits as part of a salary sacrifice scheme (ie where an employee is allowed to forego pre-tax income to pay for their food).
Matthew Hall, Head of Tax, of Wilkins Kennedy, says that although the tax clampdown on canteen meals may sound marginal HMRC itself estimates that it will collect an extra £110million per year from the measure.
Comments Matthew Hall: “Removing this tax break is going to make canteen meals much less attractive to employees – with a fall in demand many companies will stop offering canteen food.”
“Employees will lose both the tax break and the subsidies from their employer.”
“This also highlights how few tax-free benefits employees are now left with.”
“The Treasury has already undertaken a radical attack on pensions and it does make you wonder how long the last few tax free job perks will be left untouched.”
Matthew Hall explains that the last few substantial tax free benefits that staff can receive are staff car parking, childcare vouchers, bicycle schemes and benefits for death in service.
ENDS
Matthew Hall
Head of Tax
Wilkins Kennedy
Tel: 01784 4355561
Nick Mattison or Tom Yazdi
Mattison Public Relations
Tel: 020 7645 3636
