Page 85 - P6 Slide Taxation - Lecture Day 3 - VAT Part 1
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Income from Employment
Fringe Benefits
• Meals, refreshments and meal and refreshments vouchers.
• A taxable benefit arises when an employee has been provided with a meal or
refreshment or with a voucher entitling him to a meal or refreshment for a
consideration less than the value of the meal and refreshment.
• Cash equivalent = Costs to the employer –consideration paid by the employee.
• This par does not apply to board or meals provided with residential
accommodation.
• The following meals and refreshments have a zero value
- meals or refreshments supplied by an employer to his employee in a canteen,
cafeteria or dining room operated by or on behalf of the employer and patronised
wholly or mainly by his employees.
- Supplied by the employer on the business premises of the employer.
- Supplied during business hours or extended working hours.
- Supplied on special occasion.
- Enjoyed by an employee in the course of providing a meal or refreshment to
someone whom he is required to entertain on behalf of the employer.
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