Luncheon Voucher
Encyclopedia
A Luncheon Voucher is a paper ticket (voucher
) used by some employees in the United Kingdom
to pay for meals in private restaurant
s. It allows companies to subsidise mid-day meals (luncheons) for their employees without having to run their own canteens.
The scheme dates back to 1946, when food rationing was still in force following the end of the war
. The British government granted an extra-statutory tax concession, believing that this would help citizens afford healthy meals. Under the concession, luncheon vouchers are free of income tax
and national insurance contributions up to the value of 3 shillings (15 pence) a day. The initial level of 2s. 3d. (11.25p) was increased in 1948 to its current level of 3/- (15p), but has not been adjusted for inflation since. The UK government announced in March 2011 its intention to abolish this relief with effect from 6 April 2013, although this is subject to independent advice from the Office of Tax Simplification
following wider consultation.
In the early days, a company that wanted to subsidise their staff lunches, but not run a canteen, had to have vouchers printed and make arrangements with one or more local restaurants to accept them. In addition, it would have to adminster the scheme (for instance by checking and counting the vouchers returned from the restaurants prior to settling their account). In 1954, a businessman, John Hack, realised that a single standardised voucher acceptable across the UK would be more logical and efficient. He subsequently started the Luncheon Vouchers Company in 1955 to implement the nationwide LV scheme, which is now run by Accor Services
. Restaurants that accept the vouchers display an "LV" logo in their windows.
The vouchers were famously used as a form of payment in Cynthia Payne's
brothel
in London
during the 1970s.
Accor Services is conducting a commercial pilot with touchatag
in Antwerp, Belgium
, to replace the vouchers with a contactless
card.
Voucher
A voucher is a bond which is worth a certain monetary value and which may be spent only for specific reasons or on specific goods. Examples include housing, travel, and food vouchers...
) used by some employees in the United Kingdom
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
to pay for meals in private restaurant
Restaurant
A restaurant is an establishment which prepares and serves food and drink to customers in return for money. Meals are generally served and eaten on premises, but many restaurants also offer take-out and food delivery services...
s. It allows companies to subsidise mid-day meals (luncheons) for their employees without having to run their own canteens.
The scheme dates back to 1946, when food rationing was still in force following the end of the war
World War II
World War II, or the Second World War , was a global conflict lasting from 1939 to 1945, involving most of the world's nations—including all of the great powers—eventually forming two opposing military alliances: the Allies and the Axis...
. The British government granted an extra-statutory tax concession, believing that this would help citizens afford healthy meals. Under the concession, luncheon vouchers are free of income tax
Income tax
An income tax is a tax levied on the income of individuals or businesses . Various income tax systems exist, with varying degrees of tax incidence. Income taxation can be progressive, proportional, or regressive. When the tax is levied on the income of companies, it is often called a corporate...
and national insurance contributions up to the value of 3 shillings (15 pence) a day. The initial level of 2s. 3d. (11.25p) was increased in 1948 to its current level of 3/- (15p), but has not been adjusted for inflation since. The UK government announced in March 2011 its intention to abolish this relief with effect from 6 April 2013, although this is subject to independent advice from the Office of Tax Simplification
Office of Tax Simplification
The Office of Tax Simplification is an office of HM Treasury, part of the Government of the United Kingdom. The office was created on 20 July 2010 to identify areas where complexities in the tax system for both businesses and individual taxpayers can be reduced and to publish their findings for the...
following wider consultation.
In the early days, a company that wanted to subsidise their staff lunches, but not run a canteen, had to have vouchers printed and make arrangements with one or more local restaurants to accept them. In addition, it would have to adminster the scheme (for instance by checking and counting the vouchers returned from the restaurants prior to settling their account). In 1954, a businessman, John Hack, realised that a single standardised voucher acceptable across the UK would be more logical and efficient. He subsequently started the Luncheon Vouchers Company in 1955 to implement the nationwide LV scheme, which is now run by Accor Services
Accor
Accor is Europe's leading hotel group , part of the CAC 40 index , and operates in over 90 countries. Headquartered in Courcouronnes, Essonne, France, near Évry, France, the group owns, operates and franchises 4,229 hotels ranging from economy to luxury on five continents .Previously, the group...
. Restaurants that accept the vouchers display an "LV" logo in their windows.
The vouchers were famously used as a form of payment in Cynthia Payne's
Cynthia Payne
Cynthia Payne is a retired English party hostess who made the headlines in the 1970s and 1980s when she was accused of being a madam and of running her brothel at 32 Ambleside Avenue, in Streatham, in the south-west of London, England.Payne first came to national attention in 1978 when police...
brothel
Brothel
Brothels are business establishments where patrons can engage in sexual activities with prostitutes. Brothels are known under a variety of names, including bordello, cathouse, knocking shop, whorehouse, strumpet house, sporting house, house of ill repute, house of prostitution, and bawdy house...
in London
London
London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...
during the 1970s.
Accor Services is conducting a commercial pilot with touchatag
Touchatag
Touchatag is an RFID service for consumers, application developers and operators/enterprises created by Alcatel-Lucent...
in Antwerp, Belgium
Belgium
Belgium , officially the Kingdom of Belgium, is a federal state in Western Europe. It is a founding member of the European Union and hosts the EU's headquarters, and those of several other major international organisations such as NATO.Belgium is also a member of, or affiliated to, many...
, to replace the vouchers with a contactless
Contactless
Contactless may refer to:* Contactless smart card* Proximity card, a contactless integrated circuit device used for security access or payment systems* Contactless payment, systems which use RFID for making secure payments...
card.