Any HR / taxation experts? I've got a work question

[SallyOMalley]

I work in HE and I run a lot of events where I employ current students to work as ambassadors. They are employed on a casual basis. At these events, salaried staff will also be working.

Now for years and years we have provided everyone who works these events with a simple sandwich lunch. It seems the least we can do: no catering outlets are open on campus at weekends, there is no time to go out to the shop, and we ensure everyone is fed and watered on what are very busy days. Clearly workers can bring in a packed lunch but a nice sarnie and a slice of cake also acts as a nice incentive for everyone!

No one has ever had a problem with this: I've ordered lunch through the uni caterers, put it through the books on an account code, and no one has batted an eyelid.

We've just finished a series of events and HR is now telling me that I must not provide a paid-for lunch for workers that are paid for being there. Something about taxable benefits, and we're giving preferential treatment to our workers where others in other departments may not be provided with lunch.

Does this sound right?! Taking this further it means that no employer could provide a paid-for working lunch for their teams if they are paid for being there. It seems a bit ridiculous - thoughts??

Yes buying them lunch is likely to be a taxable benefit- one of the exemptions for this is where the benefit is available to everyone. So if an employer had a canteen and funded lunch for all members of staff, that would usually be exempt from being a taxable benefit. Providing lunches for some workers only would usually be taxable and reportable.

I'm not a tax expert but believe you don't have to report anything to HMRC on a P11D form If you offer ALL employers a free/subsidised meal of a reasonable value (eg you can't just offer it directors) as long as it's provided in house - much the same way that if you worked in a pub or a restaurant then staff don't get taxed for the meals which might be provided there during their shift

HR does have a point about preferential treatment though when compared to what other departments are providing but I think in this case they are just being a bit anal

This may apply depending on whether the lunch is a reward: www.gov.uk/expenses-and-benefits-trivial-benefits

Hmm Ok. So I understand why this might be the case on days / hours of usual work, but what about events taking place on days outside the normal working week? Can we not feed workers in this instance?

And what about working lunches where teams might order a platter of sandwiches to eat over a meeting or away day? Should that be scrapped too? (Our in-house caterer is going to go bust!!)

I think the reward for work condition is to stop employers from trying to circumvent paying people through payroll. HMRC is not going to get excited over some in-house lunch meetings.

Mediocre - ok, that makes sense. It does seem a bit out of proportion though, as you suggest. In any case, the Profs will be in uproar if they don't get fed!