EIM21672a - Particular benefits: Canteen arrangements: reimbursement of cost of food brought in by employee

Section 317(1) ITEPA 2003

No exemption if the employer reimburses costs or pays provider direct

Where an employee brings in food purchased from an outside provider to a workplace, for example, because they are working late, any reimbursement of the cost of the food is not covered by section 317 ITEPA 2003. The reimbursement is not exempt from tax under this section. This is a cash payment that is taxable as earnings within section 70 ITEPA 2003 (see EIM20603), subject to any deduction that might otherwise be due (see EIM31620).

Where an employee contracts for a meal and the employer pays the provider of the meal on the employee’s behalf, the exemption under section 317 does not apply. The payment represents the employer meeting the employee’s pecuniary liability and is taxable under s62 ITEPA 2003.