Cantankerous canteen

My client is a market research/media concern with 40 staff who often tend to work into the night to meet deadlines and complete projects.

Any and all employees may work late. It is the company’s policy to provide workplace meals to the staff in these circumstances.

Initially HMRC sought to tax the meals as ITEPA 2003 s 317 condition B was not satisfied i.e. all staff did not work late together but this approach was dropped when we referred to the guidelines in EIM21672.

HMRC then concluded that the canteen exemption does not apply owing to the way that the meals are provided.

For example employees may pay for the meals themselves and put in an expense claim for reimbursement – or one employee may meet the full cost for all the employees working late and similarly put in a claim.

HMRC insist that...