Quote:
Originally Posted by claytonender
Are you sure that you are paying VAT on tea, coffee and sugar. In fact I have just checked on the Makro website and they have both Tea and Coffee pn promotion and clearly state they are zero rated for VAT.
http://www.makro.co.uk/metro_mail/mc...ailer_16pp.pdf
If you bought your tea, coffee and sugar from a wholesaler the items should be marked as zero rated.
I think the reason that Marshalls were slapped with a big bill for providing free brews to staff is that the brews were not being declared as a 'benefit in kind' for the employees. As you are no doubt aware there is an annual limit to the what an employer can give an employee as a 'benefit in kind' before the employee becomes liable for PAYE on the benefit. However if an employer fails to deduct PAYE correctly they then become liable to pay for the PAYE owed. |
I dont do the accounts, but as far as I am aware, it is because they are hot brews, and as you say, a benefit in kind, so you pay vat on the stuff that wasnt charged vat originally.