Tax Free Meals – New maximum rates from April 2016

by Aspiring Training on February 25, 2016 No comments

Employees, who are away from their main workplace because they are working at a temporary site, or are travelling for business reasons, can claim reimbursement for the cost of meals eaten during those periods. There is no cap on the amount that can be claimed from their employer, but the employee must provide receipts to support the expense claim.

In practice, most employers impose a cap on what can be claimed by the employee. HMRC has accepted that employers can reimburse the cost of meals where receipts are not provided, if the cost is no more than a benchmark rate, varying from £5 for breakfast to £15 for an evening meal.

From April 2016, a new set of maximum rates for meal costs with no receipts will apply. These rates vary according to the number of hours an employee is away from their normal workplace: £5 for at least five hours, to £25 for 15 or more hours. An additional meal costing up to £10 can be claimed if an employee is still travelling at 8 pm.

These meal rates are payable in addition to the cost of travel, which includes travelling to a temporary workplace. These new rates cannot be paid as part of salary sacrifice arrangement.

Aspiring TrainingTax Free Meals – New maximum rates from April 2016

Join the conversation