Expenses and benefits: food and groceries

As an employer, you have to report the cost of any food or groceries with no resale value that you give to employees or directors.

You must:

• report the cost on form P11D
• pay Class 1A National Insurance on the cost to you

Salary sacrifice arrangements

If the cost of the food or groceries is less than the amount of salary given up, report the salary amount instead.

These rules don’t apply to arrangements made before 6 April 2017 - check when the rules will change.