What are the rules regarding the value and exemption of meal vouchers?

As the administrator of meal vouchers, you set the value of the vouchers given to your employees and must comply with exemption thresholds to avoid any penalties. Here are the rules regarding value, exemption, and the amount to be credited.

What is the face value of a meal voucher?

The face value is the total amount of the meal voucher. It consists of two parts: the employer's contribution (paid by the employer) and the employee's contribution (paid by the employee). As the administrator, you are free to decide the amount allocated to each voucher.

How can you benefit from exemption from National Insurance contributions?

For meal vouchers to be exempt from National Insurance contributions, the split between the two parts must meet the following thresholds:

• The employee's contribution must be between 40% and 50% of the voucher's value.

• The employer's contribution must be between 50% and 60% of the voucher's value. If the 50% threshold is not met, the entire employer's contribution must be added back into the calculation base for contributions. For more information, see this dedicated article.

What are the exemption limits from 1 January 2026?

Since 1 January 2026, the exemption limits for meal vouchers are as follows:

Above these amounts, the excess is subject to tax and contributions.

Can you issue a meal voucher above the exemption limit?

Yes, you can issue a meal voucher above the exemption limit. However, if this limit is exceeded, the employer must add the excess amount (the part above the limit) to the calculation base for contributions. In practice, both the employer and the employee will then pay social contributions and tax on this excess.

Change the face value of meal vouchers