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Employer wants to tax lunch allowance

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  • 22-06-2016 6:19pm
    #1
    Cerocco
    Registered Users Posts: 543 ✭✭✭


    Can anyone help answer this question. I have been a rep for 16 years and never paid tax on lunch allowance. I have just changed to a new job and I'm their first rep so it's all new to the accounts dept and they have told me they will put the allowance through pay roll so I'll get taxed. Every other job I've had the lunch allowance went through expenses so not taxed. What's right?


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    #2
    sdanseo
    Registered Users Posts: 9,233 ✭✭✭sdanseo


    If it's put through expenses it's legal but certainly not an entitlement. Expensing it amounts to your employer funding your food and would be considered BIK taxable. An allowance is income and is taxable.


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    #3
    dudara
    Registered Users Posts: 33,518 ✭✭✭✭dudara


    Taken from Revenue
    Meal allowances

    Employers are reminded that round-sum meal expenses payments are taxable in full and must be treated as pay. Please see earlier paragraph 'Round-Sum Expenses

    However, vouched expenses (IE with a receipt) are not taxable. However, there are also Subsistence Allowances, which can be claimed within the State. Just not 100% clear on the criteria.


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