Cycle to Work Days Provision of Meals – Repeal of Tax and Class 1A NICs Relief

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In normal circumstances, the provision of a meal by employer to employee at the end of home to work travel would give rise to a taxable benefit.  However, where the employer provides this on a designated ‘cycle to work’ day, these can be provided without any P11D reporting requirements.  This was intended to encourage take-up and participation in these designated days.

The consultation response documented that this relief was viewed as having ‘minimal’ value which was outweighed by the cost and administration of providing the benefit.  Further, all responses to the consultation supported the repeal of the relief, which the Government has decided to do with effect from meals provided on or after 06 April 2013.

Where this is used by employers who want to continue providing this benefit, HMRC recommends that this is added to any existing PAYE Settlement Agreement (PSA), as the criteria of minor and irregular is met.

This will be repealed via Income Tax Regulations, revoking Regulation 3 of the Income Tax (Exemption of Minor Benefits) Regulations 2002 and Amendment 2003.  Therefore, no draft legislation has been included in the Finance Bill 2012.

Further Information

• HMRC – Booklet 480 (page 12)
• HMRC – Repeal of Relief TIIN

Tags: class 1 nics, cycle to work, cycle to work days, provision of meals, repeal of nics, repeal of tax

This entry was posted on Sunday, December 11th, 2011 at 11:43 and is filed under PAYE. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.