Food and entertainment

Canteen meals

You may provide free or subsidised meals in staff canteens for all employees. If this facility is made available to all employees, these meals are not a benefit in kind (BIK).

If the canteen is only available to certain employees, the meals that you provide are a BIK. The employees must pay Pay As You Earn (PAYE), Pay Related Social Insurance (PRSI) and Universal Social Charge (USC) on this benefit. You must divide the running costs of the canteen between the employees who use it to calculate the tax.

An employee may have indicated that they did not wish to use the facilities provided. In this case, they have not received a benefit and will not have to pay tax on that benefit.

Meal vouchers

You may provide meal vouchers to your employees. These vouchers are a BIK. They must pay PAYE, PRSI and USC on this benefit. You must calculate the notional pay as the face value of the vouchers (less 19c per voucher). This is then used to calculate the tax due.

Entertainment expenses

Your employee may have to pay for entertainment as part of performing the duties of their employment with you. You may repay them for these expenses. Repaying entertainment expenses is not a BIK.

Seasonal parties and other inclusive events

You may provide seasonal parties, special occasion meals or other inclusive events, such as sports days, for your employees. The cost of these events are not a BIK, provided the expenses are reasonable and available to all employees.