Food and groceries

By Tolley in association with Philip Rutherford

The following Employment Tax guidance note by Tolley in association with Philip Rutherford provides comprehensive and up to date tax information covering:

  • Food and groceries
  • Introduction
  • Food and groceries
  • Subsistence
  • Entertaining
  • Employer canteens / vouchers
  • Salary sacrifice vouchers


There are a number of ways in which an employer might provide food to employees. This note provides guidance on the tax consequences of each or where to find further information.

Food and groceries

If an employer provides an employee with food, groceries or other produce, the cost to the employer for providing the food should be included in section A of form P11D , and Class 1A NIC should be paid.

If an employer provides employees with cash to purchase food then that amount should be included in earnings in payroll, and subject to Class 1 NIC and PAYE. The employee can, of course, claim a tax deduction if he then buys food when on business travel. The requirements for business travel can be found in the Travel expenses and Subsistence expenses guidance notes.


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