Following the Astra Zeneca case in which employees sacrificed salary in exchange for vouchers, HMRC took the view that there was a supply of services on which VAT was due.
The Upper Tribunal in the case of Pertemps has now concluded that the there is no supply of services, nor an economic activity in the situation where an employee of Pertemps sacrifices salary under what was known as a Mobile Advantage Plan (MAP) under which they received travel and subsistence expenses for a reduced salary.
Source: haysmacintyre.com
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