Staff food

mark130273

Hiya all, long time no speak on here...hope you all didnt forget me !!!!:001_tt1::001_tt1:

wondering if anyone has any experience or would know the proper way of dealing with this.

have payroll as normal in sage,......lets just say employee homer simpson is owed £220.00 for Jan wages.

he has a tab behind the bar for staff food/drink. which comes to £120.00 , we pay him £100.00 and the balance of £120.00 is used as staff food.

the journal for this transaction would have to be receipt for food and payment for wages,

but the main part is does the receipt for the food have to have the vat on ? ie £100.00 + £20.00(for taxman) ?? ive researched this and cant find nothing on web ???

any help would be most appreciated !

Love you all !!!

PAMDILL

Welcome back Mark,

I have not been on much in recent time either.

I have not had the exact same circumstance as this one, however in my previous company, employees would either take material from site or collect from merchants for their own use and I would enter the amount at cost without VAT as a post tax deduction on their Sage payroll record.

I had a few HMRC inspections over the years there and the inspector did not comment on it being incorrect not to charge the VAT to the employee.

The only time there was a problem was when work was carried out at an employee's house in that case VAT had to be charged.
:001_tt1:

wondering if anyone has any experience or would know the proper way of dealing with this.

have payroll as normal in sage,......lets just say employee homer simpson is owed £220.00 for Jan wages.

he has a tab behind the bar for staff food/drink. which comes to £120.00 , we pay him £100.00 and the balance of £120.00 is used as staff food.

the journal for this transaction would have to be receipt for food and payment for wages,

but the main part is does the receipt for the food have to have the vat on ? ie £100.00 + £20.00(for taxman) ?? ive researched this and cant find nothing on web ???

any help would be most appreciated !

Love you all !!![/QUOTE]

SLM

VAT applicable I would say

If the business is registered for VAT then all their sales must be VAT inclusive, regardless of who the consumer is. What would be your reasoning behind making this a zero rated sale? :confused1: