Payroll Advice

Luncheon Vouchers

We pay luncheon vouchers to the value of GBP 1 per day. I understand that our employees are liable to pay tax of 85p on this. Is this correct and are there any other implications?

Employers are permitted to give non-cash meal vouchers of 15p per day without any Tax, Class 1 or Class 1A National Insurance liability. Some employer's give in excess of this amount and therefore the excess, in your case the 85p, has been chargeable against income tax and should be returned on forms P11D and P9D at the end of the tax year.

Since April 1999, non-cash vouchers have additionally incurred a Class 1 NI liability. This means that the excess over 15p per day of luncheon vouchers now attracts Class 1 NI liability on both the employee and the employer.

Check that you are now deducting NI on this excess amount and that it has not been overlooked since 6 April 1999.

Del.icio.us Digg Newsvine Reddit Technorati Google

Talk to us...

Navigate...

Download...

Subscribe...