Tax treatment of employer-provided staff meals

The Irish Revenue have published guidance on the provision of staff meals (TDM Part 05-01-01o).

The guidance reiterates the position in relation to staff canteens i.e. specific tax exemption where open to all staff and also provides welcome commentary on the tax treatment of staff meals provided outside a designated ‘canteen’ setting.  

Key points for employers

Meals provided on the employer’s premises

With effect from 1 October 2025, meals brought on to and consumed on the employer’s premises will not attract a benefit in kind charge (BIK), where the meals are available to all staff.

This applies even if there is no staff canteen and covers a wide range of food and non-alcoholic drinks (alcohol is specifically excluded).

If meals are not available to all staff, or not consumed on the premises, the cost is a taxable BIK.

Working lunches

From 1 October 2025, where meals are provided to specific employees for operational reasons (e.g. meetings, overtime), this will not be considered taxable if:

• there is a genuine operational requirement.
• meals are consumed on the employer’s premises; and
• the cost per employee does not exceed the Civil Service 5-hour subsistence day rate (currently €19.25).

If the cost exceeds the above rate, the full amount becomes taxable.

Meal vouchers

The long-standing 19c deduction per voucher is abolished. From 1 October 2025, the full face value of meal vouchers is taxable.

Record keeping

Employers must maintain clear records of dates / costs / number of employees availing of meals or refreshments. Revenue may conduct spot checks to verify compliance.

Meals includes a wide range of food and drinks e.g. hot meals, sandwiches, snacks, fruits, biscuits, tea, coffee, soft drinks (alcohol is specifically excluded).

Our view

These updates are a positive and pragmatic step for both employers and employees. 

The updated guidance better reflects modern workplace realities, offering fairer treatment for SMEs and businesses without traditional canteens. Allowing meals brought onto the premises to be exempt from BIK, provided they’re available to all staff, promotes inclusivity. Recognising operational needs like meetings or overtime ensures that reasonable meal provisions don’t create a tax burden.

Removing the outdated 19c voucher deduction and introducing a clear cost threshold for working lunches simplifies administration and enhances transparency. However, the emphasis on record-keeping and Revenue spot checks reinforces that with flexibility comes responsibility, employers must apply the rules correctly and consistently.

How can Grant Thornton help?

Our team can work with employers to review current staff meal and voucher arrangements, advise on meeting the new qualifying conditions for tax exemptions, and assist in updating internal policies to ensure compliance from 1 October 2025. We can also provide guidance on the necessary record-keeping requirements to prepare for potential Revenue spot checks and offer ongoing support for any queries or complex scenarios that may arise.

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