VAT Notice 709/3 has been updated to reflect HMRC’s revised policy regarding accommodation and catering supplied to employees.
The change can be found in section 4.2: "If you supply your employees with accommodation or food and drink, in your establishment and they pay for it, the payments are treated as including VAT and you must account for it on your VAT return.
"Where employees pay for meals and so on from their pay including under a salary sacrifice arrangement employers must account for VAT from 1 January 2012 on such supplies unless they are zero-rated. Subject to the normal rules, the employer can continue to recover the VAT incurred on related purchases."
Visit the HMRC website for further information on the changes to VAT Notice 709/3