Skip to main content

This is a new service – your feedback will help us to improve it.

Posted Wed, 12 Jul 2023 08:16:55 GMT by James
The HMRC guidance at "BIM45034 - Specific deductions: entertainment: exceptions: entertainment of employees: meaning of incidental" provides the following example: "In contrast, where the employee takes the customer out to lunch at a restaurant, the whole cost of the lunch for both the employee and the customer is business entertainment and is not allowable. This is because the company would not have paid for the lunch if the guest had not been present and so the employee’s lunch is incidental to that of the customer." In this scenario, is there a taxable benefit in kind on the employee? i.e., where a PSA is in place, would the cost of the meal for the employee need to be reported under the "Staff lunches" category? In case relevant, let us assume that the employer does not generally provide meals to employees.
Posted Tue, 18 Jul 2023 12:00:12 GMT by HMRC Admin 8
The manual page to which you refer concerns Corporation Tax.  
If your query is in part  about that, please contact the Corporation Tax helpline on 03002003410.
In respect of whether this is a benefit in kind for the employee; 
Expenses and benefits: entertainment  
If you already have a PSA, you should contact the Compliance Officer responsible for agreeing this with your business. 
If you do not, you can apply here:
PAYE Settlement Agreements
Thank you.

You must be signed in to post in this forum.