Tax Planning Strategy 86 | Employee Meals on Business Premises

Tax Planning Strategy 86 | Employee Meals on Business Premises

employee meals on business premises

Employee meal costs, like lunch during a normal work day, are normally private non- deductible expenses. But an employer can provide the following meals to employees, claim a tax deduction for the expenses, and pay no fringe benefits tax:
Tea, coffee and cakes provided on business premises for employees and customers.
Sandwiches, muffins, fruit, pastries, etc. consumed during a work meeting or training session on business premises.
A light meal and drink consumed on business premises while working. This includes pizza, takeaway food, drinks, etc.
A light meal and drink consumed at a café by an employee during a meal break on a work day (See PBR numbers 38556 and 91001).

By providing employees with free meals during a work day employers benefit from the increased employee satisfaction, easier employee recruitment (as employees are getting a free benefit not provided by most employers), and increased employee productivity (as employees are more likely to work longer hours if they don’t need to leave the business premises for meals). Business owners operating their business through a trust or company structure are also employees of the business. As such the business can also claim a tax deduction for their meal expenses when it meets the criteria detailed above. 

Similar posts you may like

  • Bahrain

    Capital city:                Manama      Currency:                    Bahraini Dina Read more

  • Nevada

    Capital city:               Carson City     Currency:                    US Read more

  • Niue

    Capital city:              Alofi Currency:                  New Zealand dollar (NZD) Population:              1,470 (predominantly Polynesian) Language:                Niuean (official) 46% & English Read more

  • Legal Reasons to Use a Tax Haven

    Without doubt, the dominant legal reason to use tax havens is to save tax. Many taxpayers, especially multi-national corporations, can legally save tax by Read more

"You’d be stupid not to try to cut your tax bill and those that don’t are stupid in business"

- Bono: U2