Reply To: landlord charges more for meals than the standard meals rate

#286372
Peter Barker
Keymaster

What makes a service charge – any service charge – eligible for HB in the first place is Reg 12(1); but Schedule 1 then provides an exception to that for certain ineligible charges which would otherwise be eligible under Reg 12(1). A charge for meals is ineligible to the extent specified in Sched 1 para 2, but otherwise eligible under Reg 12(1). If the eligible portion of the charge is excessive it can be restricted under para 4. In this case that sounds extremely unlikely.

If you read Schedule 1 carefully, it says a charge for meals is ineligible “subject to para 2”, and that an *eligible* charge may be restricted if it is unreasonably high “subject to para 2”. This demonstrates that the charge is indeed both eligible and ineligible at the same time.