My company are looking to trial a 'Fun Fund' which would allow senior managers to spend £10 per head each month on a social activity with their team. The idea behind this is that it would help bring teams closer together and improve morale in our offices. One issue we have encountered is the tax implications associated with doing this as managers cannot expense activities that they do with their teams without the business coming under scrutiny from HMRC. We could potentially add this to P11d's as a benefit in kind but then it dilutes the positive message we are trying to deliver if managers are then going to pay tax on this amount.
Does anyone else operate something similar or could you suggest ways we can provide this benefit to our employees? Any suggestions would be much appreciated.
Thanks in advance.