Taxman on the look out for breakfast blunders
Companies that provide free breakfasts to staff that cycle into work in the belief that they are tax-free could, inadvertently, be tripping themselves up.
New changes brought in under Budget 2003 allow companies to provide staff that use the two-wheel option to travel into work with unlimited numbers of tax-free breakfasts, but only when they fall on designated company ‘cycle to work days’.
According to tax advisers from Moore Stephens, Inland Revenue inspectors are on the look out for companies that provide these free meals on days other than those designated.
Guy Smith, tax partner at the firm, warned: ‘The Revenue’s current emphasis on compliance means that officers are on the look out for small things like the provision of free breakfast other than on a designated day. A small slip up here may just be the trigger for a close examination into the rest of your accounts.’