staff refreshments - seeking clarification

[RAFEZETTER]

Hi there, this is small potatoes compared to other things submitted here but a situation today at work has forced me to find clarification on this matter.

I have been working at the same company for nearly six years (only a small retail concern) and have previously bought the coffee, sugar, washing up liquid, toilet roll and toilet cleaner for the most part out of my own pocket with occaisional receipts submitted to the manager (with myself taking the value out of the till) and occaisional payment of these items by the manager out of his own pocket.

The situation occurred again today where the manager told me that previous receipts submitted by me have been thrown away and the money put back into the till out of his pocket.

The situation got quite heated again where he informed me that at previous employments he has had to pay for drinks out of a machine and that when he took over the running of the shop that he provided the kettle, microwave and toaster himself and that he doesn't believe staff should be entitled to free coffee etc. I replied that I have worked at companies including a charity where simple staff refreshments such as tea and coffee etc were provided free of charge and in whatever quantity desired. He replied that as my previous employers were not retail outlets this didn't apply. It should also be noted that a few other people not employed by the company; customers, company reps, visitors for the manager and the owner occaisionally also use these same refreshments and staff facilities.

My main question is this: I was under the belief that receipts for sundries such as these can be paid out of company petty cash and then submitted as deductables at the end of the tax year and offset against that years tax liability irrespective of business size or type.

If the answer is yes they can be offset against tax would I be right in thinking the only reason for the trend of companies making employees pay for such minor perks via a machine is simply an exercise in costcutting/ profitmaking by the business owner?

I should also point out that even though the manager is not the business owner he is a member of the family and has been granted complete autonomy on how the business is run, the finances and every other aspect of the company and is therefore in a position to allow staff refreshments gratis should he so desire.

I am aware that this might seem quite petty but after 6 years it's been getting on my nerves, longer actually but todays outburst has forced me to seek a definitive answer to this issue. I did a quick sum to figure how much I have spent in the last six years and it's in the region of £100 per year.

If I am correct and it can be offset against tax then frankly I find it crazy that the manager insists staff pay for refreshments and other sundries like toilet paper themselves and does not take advantage of this tax allowance, especially considering what we hear in the news about public officials and their appropriation of public tax funds and what they get used for, such as the chancellor and his two cars or the royal family charging helicopter flights for personal trips to public money.

I hope someone will take the time to answer my question on what must seem a trivial situation. I also noticed the thread regarding the tax allowance regarding staff Christmas parties which I shall also stick under his nose for perusal.

Best regards, Rafe

[Ian J]

Originally Posted by RAFEZETTER

I was under the belief that receipts for sundries such as these can be paid out of company petty cash and then submitted as deductables at the end of the tax year and offset against that years tax liability irrespective of business size or type.

If the answer is yes they can be offset against tax would I be right in thinking the only reason for the trend of companies making employees pay for such minor perks via a machine is simply an exercise in costcutting/ profitmaking by the business owner?

Incidentals such as those that you describe are tax allowable and most small companies that care about the welfare of their staff wouldn't pennypinch to the extent that your company seems to be doing.

[profitxchange]

I see a number of issues here:-

Yes the manager is being stingy - however, he is only a manager - what is the company policy? See if you can get feedback from the owner/proprietor.

There are lots of co's that make employees pay for refreshments via vending machines etc.

It can be argued that free refreshments are a benefit in kind and taxable! But I don't think the IR have got that mean YET.

[RAFEZETTER]

Hi - Thanks for the replies, as far as the company owner is concerned the business is a sideline to his main building company and therefore has little input into the daily running of the shop and as stated the Manager has been granted COMPLETE autonomy over normal running finances, day to day expenses and the accountancy software used for financial managment. As far as I can tell he is allowed to run the company as he sees fit as long as it remains solvent and such decisions are his to be made and would not be of any concern to the owner.

[fisicx]

Is there a record of him putting the money back in the till? And if the recieots have been thrown away is there a record of the money you have claimed from petty cash?

If there are no records then it is difficult for the manager to back claim as requested.

Furthermore, one could argue on H&S grounds that toilet roll and cleaning materials should be provided by the company.

And in any case, if one assumes that the manager took his fair share of the refreshments then he should pay half the moneis owed.