Expenses and benefits: meals for employees and directors

EXPENSES AND BENEFITS: MEALS FOR EMPLOYEES AND DIRECTORS Skip contents CONTENTS * Overview * What's exempt * What to report and pay * Technical guidance WHAT TO REPORT AND PAY If the

meals or vouchers you provide are not exempt, you may have to report them to HM Revenue and Customs (HMRC) and deduct and pay tax and National Insurance on the costs. FREE OR SUBSIDISED

MEALS THAT ARE NOT EXEMPT This includes meals that: * are not on a reasonable scale, for example, elaborate meals with fine wines * are provided off-site but not at a canteen, for example,

at a restaurant * are not available to all staff, for example, meals for directors only * provided under salary sacrifice or flexible remuneration arrangements (also known as ‘flexible

benefit plans’) You must: * report them on form P11D * pay Class 1A National Insurance on the cost to you VOUCHERS FOR MEALS OUTSIDE THE WORKPLACE You must: * report them on form P11D *

deduct and pay Class 1 National Insurance on the value of the vouchers through payroll OTHER VOUCHERS, CASH ALLOWANCES OR EMPLOYEE ACCOUNTS If you provide any of the following, this counts

as earnings: * vouchers that can be exchanged for either food or cash * cash allowances for meals * top-up payments to an employee’s account for workplace food and drink using a card or PIN

system For these costs, you must: * add the amount to the employee’s other earnings * deduct and pay PAYE tax and Class 1 National Insurance through payroll SALARY SACRIFICE ARRANGEMENTS If

the cost of the meals is less than the amount of salary given up, report the salary amount instead. These rules do not apply to arrangements made before 6 April 2017 - check when the rules

will change. Previous : What's exempt Next : Technical guidance View a printable version of the whole guide