Employers need to have a far greater understanding of when employees can and cannot claim for business lunches, UK tax and advisory firm Blick Rothenberg has warned.

Robert Salter, a client service director specialising in employment tax issues at the firm, said that with recent controversy about costs incurred by Tory cabinet minister Liz Truss in terms of business lunches, It was essential that businesses understand the regulations which apply and when it is possible to argue that business lunches are tax-free for employees.

Mr Salter explained that firms have to separate the treatment of 'staff lunches' from those co...