Keep staff cool with tax free ice lollies

Bosses can cool staff down during the heatwave with an ice lolly or Mr Whippy and pay no tax on the cost, according to Midlands-based Spark Accountants.

Phil Burnell, founder and managing director of Spark Accountants, based in Sutton Coldfield, explained that occasional summer frozen treats are exempt from tax and national insurance, as long as certain conditions are met.

Burnell said: “Everyone’s going to be sweltering in the office in the next few days, so imagine the relief that bosses can provide by sending out for a box of ice lollies for everyone, or a round of Mr Whippy cones from a passing ice cream van.

“But take care: providing employees with innocent treats can attract an unexpected tax bill if you don’t follow the rules!

“The treat must be offered to everyone, it can’t just be certain members of the team, and make sure they are consumed in the office or at the workplace.

“As long as you stick to those rules, the ice-cold treats will remain exempt from any taxation or national insurance for both the company and employee.”

Burnell added: “Whatever the weather, millions of people will still be working, and what better morale booster could bosses provide than an ice lolly or ice cream? Keep cool and carry on!”