Lunch Allowance

Hi,

I used to work for a company a few years ago who paid a lunch allowance if you had to eat outside the office.
Now I work for a different company and they are paying me lunch allowance but in a different way.
For example.....
In my old company, lets say one month I spent €100 on lunch, they used to lodge the €100 into my account direct. They would then include the €100 on my payslip and then deduct it again.
I did not have to produce receipts, I was given a flat rate of €25 any time I had to eat out.
My new company do not lodge into my account, they include it on my payslip but dont deduct it, therfore I pay tax on it.

Can someone tell me which is the correct way it should recorded?

Thanks a lot.
Lapxp

You don't normally pay tax on lunch expenses. With your new company, are you paid a flat rate each month, or are you paid based on receipts, or are you paid a flat rate for each day out of the office?

Hi Rainyday,

With my new company I am paid a flat rate any time I claim. Basically whenever I am out of the office I just put L.A. on my timesheet each month for every time I am out of the office and get paid €25.
This is also the case if I have to work in the office at weekends where there is no canteen service which is normally once a month.

I am curious to know why the two companies are paying me in a different way.
Am also concerened that I may owe tax.

Thanks
Lapxp

Hi Folks,

Can someone tell me if i'm liable for Tax here?
Or am I being paid incorrectly?

Thanks
Lapxp

Hi Rainyday,

When you say "you dont normally pay tax on lunch allowances" what do you mean?

Thanks
Lapxp

I think the way it works is that if you're paid a flat rate it should be in line with the revenue guidelines:

Day Allowance – 5-10 hours 15.45
Day Allowance – 10 hours + 37.90

where "hours" is the number of hours you're outside the office. These don't require receipts. However, if you're getting more than that they should be receipted expenses.

Travel expenses are deductible. Lunch expenses are not, unless the lunch is eaten when you are travelling. What does lunch eaten out of the office mean? Most people eat lunch out of the office!

"working" outside the office :\ . You can only claim it if you're working off-site...