Are free or subsidised employee meals a taxable benefit?

Providing employees with free or subsidised meals on the employer's business premises or in any canteen is not taxable if the provision is part of an arrangement that is made available to the employer's staff in general.

Employees employed by a third party and not the employer that provides the facility are provided with meals are similarly exempted from any tax liability on this benefit. The exemption does not apply where the subsidised or free meals are under a salary-sacrifice arrangement or offered as part of a flexible benefits plan.

Note: Luncheon vouchers are subject to tax and Class 1 national insurance contributions.