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Home / Simons-Taxes /Personal and employment tax /Part E4 Employment income /Division E4.11 The 'Pay As You Earn' system /Notional payments / E4.1123 Vouchers and credit-tokens to employees—tax and NIC treatment
Commentary

E4.1123 Vouchers and credit-tokens to employees—tax and NIC treatment

Personal and employment tax

Cash vouchers

A cash voucher is a voucher or stamp capable of being exchanged, either immediately or later, for a sum of money greater than, equal to or not substantially less than, the expense of providing it1. At the time the voucher is received by an employee, their employer is treated as making a payment of PAYE income and must include it in the amount on which a tax deduction is calculated2, unless:

  1. Ìý

    •ÌýÌýÌýÌý it is issued under a scheme approved by HMRC which provides for PAYE to be applied to the cash for which the voucher is exchanged3, or

  2. Ìý

    •ÌýÌýÌýÌý the voucher, or the cash for which it is exchanged, is used to defray expenses of the employee for which they can claim tax relief4, or

  3. Ìý

    •ÌýÌýÌýÌý the voucher is of a kind available to the general public and is provided to the employee on the same terms as to the general public5

As

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