Lunch provided in the office every day - how to account for it

[Wowee]

Hi, I'm new to all this, hope I don't make a fool of myself .

I'm just starting to set-up the accounts for a ltd company that began trading last August.

Amongst the paperwork, there is a huge wodge of receipts from local take-aways & sarnie shops, where the directors & staff have raided petty cash to buy their lunches, and just expect it all put thro the books (along with mountainous amounts of biscuits, coffee, mars bars etc.

Whilst I'm used to companies doing this when entertaining clients at meetings etc, I'm unsure what to do when it's just the usual staff having lunch.
And won't there be a P11d liability too?

 

[wood1e2]

I believe that these are benefits inkind...well after a certain amount anyway

 

[taxattack]

Hi, I'm new to all this, hope I don't make a fool of myself .

I'm just starting to set-up the accounts for a ltd company that began trading last August.

Amongst the paperwork, there is a huge wodge of receipts from local take-aways & sarnie shops, where the directors & staff have raided petty cash to buy their lunches, and just expect it all put thro the books (along with mountainous amounts of biscuits, coffee, mars bars etc.

Whilst I'm used to companies doing this when entertaining clients at meetings etc, I'm unsure what to do when it's just the usual staff having lunch.
And won't there be a P11d liability too?

This is how to do it in future - the company provides lunches
or vouchers for all its employees.
http://www.hmrc.gov.uk/manuals/eimanual/eim21671.htm and following pages.

Chris

 

[Wowee]

Thanks Chris.

Accounting wise I guess I just have another expenses account for refreshments?

 

[stphnstevey]

Are the lunches handled differently than the beverages?

 

[FluxServices]

If they raided the petty cash to the hilt and empty it everytime then you need to put your foot down and tell them to calm down.

If you are paying your staff wages then they should provide their own lunch, They are just taking advantage of you and as for the directers then they should no better.

 

[Simon-M]

^^^^

 

[Wowee]

If they raided the petty cash to the hilt and empty it everytime then you need to put your foot down and tell them to calm down.

If you are paying your staff wages then they should provide their own lunch, They are just taking advantage of you and as for the directers then they should no better.

Well I'm just a paid lacky here to do the books.

The directors started the company, as far as I know they are also the shareholders. If they want to leak funds out of it on sarnies & Mars Bars, I can't tell them they must not. I can advise them that it may not be wise, especially as it encourages other employees (only 2 at present) to adopt the practice too, but that's all.