The chief executive and founder of Iceland Foods has described a dispute with HMRC over the company’s Christmas savings scheme as “just madness”.
Under the scheme, staff can voluntarily set aside money from their weekly wages and claim it back later.
However, HMRC has told the company the payment means staff are technically falling below the minimum wage.
Iceland founder Malcolm Walker intends to fight the HMRC claim, which was first reported in the Times.
HMRC said it did not comment on individual cases.