One of my clients runs a poultry auction, and relies heavily on volunteer helpers.
As it's an early start (7.30am) for the helpers and doesn't normally finish before 3pm, they make up loads of sandwiches and take crisps, chocolate, soft drinks & hot drinks to keep everyone going.
Since I know HMRC are a bit picky about food related expenses, and can't find anything helpful on their site about this particular type of expense, does anyone have any thoughts or views as to whether this should be allowable?
My gut feeling would be that it is reasonable to provide food for those volunteers and so would allow it but that's just a gut feeling and not actually based on anything concrete. It passes the "reasonableness" test though!
A couple of my clients work with volunteer and they pay their travel expenses, one of them is also putting a couple through NVQ, all of which I would class as allowable expenditure but I'm not sure on providing food.
I always thought it was firmly established that we "eat to live, not to work", so unless the employee was inconvenienced in some way e.g. being away overnight then it's not allowable.
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Tony
Responses are intended as outline only. Formal advice should be sort from your Institutes Technical Department or a suitably qualified Accountant.
My flags in Tony's camp on this one (and in agreement with your initial appraisal of the scenario).
This follows the logic of BIM37670 (see here : http://www.hmrc.gov.uk/manuals/bimmanual/BIM37670.htm)
The HMRC case law on this can be found at : Caillebotte v Quinn [1975] (see here : http://www.hmrc.gov.uk/manuals/bimmanual/BIM37660.htm)
to quote from this one
The cost of food or drink consumed for the human requirement of sustenance is not allowable. It does not matter that work occasions a greater appetite or causes greater expense. The expenditure is at best dual purpose. There is no mechanism to allow an apportionment to give a business proportion or the extra cost imposed by the business. The whole cost is disallowed.
See also Watkis v Ashford, Sparkes and Harward [1985] (see here http://www.hmrc.gov.uk/manuals/bimmanual/BIM37925.htm)
The real issue here however is not for those receiving the food as its just a thankyou from the organisers of the auction so it's just a non allowable expense of the business for tax purposes.
HTH,
Shaun.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
