BIM47070 - Specific deductions: staffing costs:
employee welfare
Expenditure on staff welfare is allowable unless it is
capital
You should allow expenditure incurred directly by a trader on
the welfare of their employees, unless of a capital nature. For
guidance on expenditure on staff entertainment see also
BIM45033.
Admissible types of outlay include:
- The rent and cost of maintenance of recreation grounds,
canteens, ambulance rooms, rest rooms, lavatories, day nurseries
etc for the use of the employees.
- Fees etc paid in respect of the attendance at technical and
educational classes of juveniles actually employed, and grants made
to cover the travelling expenses of such employees between the
business premises and the classes (see also
BIM45155 - BIM45170 regarding payments
for technical education).
- Salaries of welfare superintendents.
- Provision of overalls, caps etc and cost of repair and
laundering.
Inadmissible types of outlay include:
- The cost, whether incurred voluntarily or under compulsion, of
additions or structural alterations to factories etc made to meet
the welfare requirements of operatives.
- The cost of sports pavilions, clubhouses etc or of laying out
cricket etc grounds.
See CA32500 (sports pavilions) and CA32320 (welfare expenditure)
as regards capital expenditure on buildings for the welfare of
employees which ranks for allowances under CAA01 Chapter 2, Part
3.
