I have worked for a company for many years. As part of what they do is sell food and drink
I am allowed to have refreshments to the value of £7.50 per shift. Every year the company inform HMRC and I pay tax on the benefit.
For the last 18 years they have told the HMRC the cost of this benefit based on the cost to the company not the retail price. So even though I can have up to 7.50 a day the cost to the company is much less. A sandwich which sells for £4.00 may only costs them £1.00. The declared amount is usually about 500 so I pay tax of 120 at 20%.
However for some reason they have now declared to the HMRC the gross cost. So last year they said the benefit I received was 1575. HMRC have written to me to say I owe them about 300.
I don't understand why they have changed the way they work out the benefit. Has anything changed recently for them to make the change. I am trying to get hold of someone in my company but they are quite large and there are not many of us in this situation. Should I complain to the HMRC that the company is giving wrong information ?
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