There is a 15 pence per working day exemption from an income tax
charge on some meal vouchers provided to employees.
The exemption applies whatever the level of the employee's income.
Where the value of meal vouchers provided to an employee exceeds 15 pence per working day only the excess is taxable. Only the excess has to be included on form P9D or P11D by the employer.
The cash equivalent of the meal voucher is reduced by 15 pence for each working day providing that the following conditions are met:
The value of any voucher that does not comply with these
conditions is taxed.
Where an employer wishes to pay the employee's tax liability on the excess value of meal vouchers, the excess should be grossed up, entered on the deductions working sheet relating to the employee and taxed under PAYE. In no circumstances is the tax liability of any employee in respect of an issue of meal vouchers with a value exceeding 15p per day to be covered by an adjustment in computing the employer's own tax liability as an alternative to the grossing up procedures.
As regards the provision of meals for employees who are neither directors nor in lower paid employment see EIM21670 and EIM21671.