• Skip to primary navigation
  • Skip to main content
  • Skip to footer

Top notice bar

Call us on 08000 388799

Avanti Tax Accountants HomepageAvanti Tax Accountants

Bookkeeping, Accountancy and Taxation services

  • Home
  • About Us
  • Our Services
    • Bookkeeping & Accountancy
    • Corporation & Personal Tax
    • Payroll & CIS
    • Company Secretarial Bureau
    • Budgeting, Forecasting & Business Valuations
    • Mentoring & Business Coaching
    • Software & Training
  • Our Accountants
  • News & Insights
  • Send An Enquiry
Home » News & Insights » Tax And Workplace Meals

Tax And Workplace Meals

Posted on 4th August 2021

A client owns a pub/restaurant and provides his staff with a meal halfway through their shift, is this a taxable benefit?

If a free or subsidised meal is provided to employees by their employer there may be tax relief by exemption or by deduction.

  • If the meal is part of an employee or director travelling on qualifying business travel
  • If the employee’s or director’s meal is part of business entertaining and there is a matching deduction under S336 ITEPA 2003
  • Under the exemption in S317 ITEPA 2003

In the client’s case, by providing a meal to his staff during their working hours, there is no tax charge if the meal is provided in either a canteen or at the workplace and the following four conditions are met as detailed in S317 ITEPA 2003.

The conditions are

  • That the meal provided is on a reasonable scale. Further information on what is meant by ‘reasonable scale’ is detailed in EIM21671.
  • That all the employer’s employees or all employees at one location can obtain either a free or subsidised meal or a free or subsidised meal voucher or token
  • That if the meal is provided in a restaurant, dining room of a hotel or other similar business, that a part of that area is designated for staff use only and the meals ae taken in that part
  • That the meal is not part of a salary sacrifice or flexible remuneration arrangement. Further information can be found in EIM21676.

If all the above conditions are met, then tax relief can be obtained on a free or subsidised meal in the workplace.

If the conditions are not met then the benefit of the free or subsidised meal must be reported on a P11D or the benefit processed through the payroll and the employer will have a Class 1A National Insurance liability to pay on the benefit.

There is no requirement that all employees must have frequent meals at the workplace, just that they have the opportunity to have a free or subsidised meal if the employer offers such a benefit.

If meals are provided in a canteen, the exemption can apply to any canteen.  The canteen does not have to be on the employer’s premises or restricted to employees from one employer only.  For example, one canteen could provide meals to all employees working on one industrial estate if all the employees from a particular employer can access the meals at the canteen.

The exemption will also apply to a meal provided to an employee by a third party.  For example, if the employee is working at the premises of a third party on a temporary basis and that employer provides free or subsidised meals to all their employees.

Source: Croner-i

Share this post:

Share on TwitterShare on FacebookShare on LinkedInShare on E-mail

Filed Under: Exclusive News

Disclaimer:- The information contained herein is given by way of general guidance only and no action should be taken solely on the basis of the information contained herein. The Avanti Group (UK) Ltd will be pleased to provide further guidance on the issues, and how they might affect you. No liability is accepted by the firm for any action taken without seeking appropriate professional advice

Footer

Navigate

  • Find An Accountant
  • About Us
  • News & Insights
  • Privacy Policy
  • Letter Of Engagement

Our Services

  • Software & Training
  • Mentoring & Business Coaching
  • Budgeting, Forecasting & Business Valuations
  • Company Secretarial Bureau
  • Payroll & CIS
  • Corporation & Personal Tax
  • Bookkeeping & Accountancy

Get In Touch

Tel: 08000 388799
Send us an enquiry

  • Facebook
  • Instagram
  • Twitter
Copyright © 2023 Avanti Tax Accountants · All Rights Reserved
Part of The Maurice J Bushell & Co Ltd Franchise (UK) Ltd · Company Reg: 10407313 and The Avanti Group (UK) Ltd · Company Reg: 04635630 · Created by Purple Hippo
  • So we can contact you to discuss your enquiry
  • So a member of our team from your area can contact you
  • By clicking ‘Send Enquiry’ you agree to receive contact from Avanti Tax Accountants using the details given above. We respect your personal information and your privacy and will not share or sell your information to other organisations. Please read our Privacy Policy for more information.
  • This field is for validation purposes and should be left unchanged.