Luncheon Vouchers – Repeal of Tax and Class 1 NICs Relief

The Luncheon Voucher relief (introduced in 1946 at the time of food rationing, with the intention of helping individuals afford meals) gave tax and NICs relief on the first 15p per working day, where a voucher was provided by employer to employee.

For the sake of interest only, the following will be repealed in order to remove this long-standing relief:

• Section 89 Income Tax (Earnings and Pensions) Act 2003
• Paragraph 6A of Part 5 of Schedule 3 to the Social Security (Contributions) Regulations 2003
• Regulation 40(2)(za) of the Social Security (Contributions) Regulations 2001
• Paragraph 14(3)(b) of Schedule 2 to the Social Security (Contributions) Regulations 2001

The 15p relief will cease to be effective for luncheon vouchers issued on or after 06 April 2013.

Further Information

• HM Treasury – Draft Legislation and TIIN
• HMRC – Booklet 480 (see page 10)