§ 53. Lieut.-Colonel Bromley-Davenportasked the Chancellor of the Exchequer what is his estimate in connection with his review of luncheon vouchers of the 66W number of persons in receipt of earned income at the present time who enjoy facilities for free or cheap meals below cost price in canteens provided by their employers, or who are in receipt of luncheon vouchers; and what would be the cost to the revenue if workers not enjoying such facilities at the expense of the revenue were allowed to deduct 10s. a week from their earned income before paying tax, to allow for their average weekly expenditure on luncheons.
§ Sir E. BoyleI regret that there is insufficient information to make these estimates.
§ 54. Lieut.-Colonel Bromley-Davenportasked the Chancellor of the Exchequer whether, in view of the growing confusion about what constitutes the proper use of luncheon vouchers, he will issue a concise guide for employers and employees indicating the circumstances under which such vouchers can be issued, the conditions relating to their use, and also give guidance to those who are not in a position to use vouchers, as to the conditions under which they can claim part or whole of the expense of their meals against their income for tax purposes.
§ Sir E. BoyleThe conditions of the extra-statutory concession under which luncheon vouchers are not taxed are that they must be non-transferable and used for meals only; that where any restriction is placed on their issue to employees they must be available to lower-paid staff; and that the value of the vouchers issued to an employee must not exceed 3s. for each full working day. I think 67W these conditions are already widely known, but I am glad of the opportunity of repeating them. Reference to them will be included in the next revision of the Employer's Guide to Pay-as-you-Earn. The expense of a taxpayer's own meals is not normally allowable for tax purposes.