Shock Horror! No more tax relief for subsistence?

Author: Russell Smith
November 9, 2015

At the moment, the tax rules allow businesses to pay tax and NI-free sums to directors and employees to cover the cost of meals they buy while on business.

However, the government are now saying that these rules are out of date and are proposing to abolish the relief but keeping the exemption of payments of meals where an overnight stay is involved (although it has said that this will be reviewed later).

If this goes through, then any payments you make to employees will be liable to tax and NI leaving them worse off under the current rules.

It is at consultation stage at the moment and the deadline for feedback is 16 December 2015 so we will see what happens…

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