Staff lunch payments

[cotnals]

Hi

I recently incorporated Ltd company and decided to pay about £150 per month per staff for lunch.

Is it allowable expenses on tax purpose? Will it be treated as addtional benefit or income for staffs?

Thanks.

[section 44]

Do you mean that you pay £150 to each employee each month? If so, then that will be employment related income and subject to PAYE and NICs.

Alternatively do you mean that you incur costs of £150 per employee to provide free lunches (i.e. such that the employees do not get their hands on the cash)?

[cotnals]

Thank you for your reply.

I meant I would pay cash £150 per month to the staff and you are saying that I will have to pay tax if i do so.

Okay then, If I do not pay cash to the staff and buy free lunch for staff it wont be addtional income for staff? And can it be claimed as tax deductable expenses in my company account?

Thanks

[section 44]

The provision of a free lunch to all employees would not be a taxable benefit in kind.

[Generix]

I would only like to add that there is no such thing as a free lunch.

[section 44]

Very true, if you can work an extra billable hour out of the assets for the cost of a sandwich then its gravy all the way.