½Û×ÓÊÓƵ

Vouchers

Produced by Tolley in association with
Employment Tax
Guidance

Vouchers

Produced by Tolley in association with
Employment Tax
Guidance
imgtext

Introduction

This guidance note covers the treatment of vouchers, whether in the form of a cash voucher, non-cash voucher or credit-tokens. These terms are all defined in the legislation and explained further below. Generally, If an employer provides a voucher or credit-token to an employee, it is a benefit and so tax and NIC are due. It is important to identify which category the item falls into so that the value of the benefit can be correctly determined and reported.

Many of the tax and NIC rules in relation to vouchers and credit tokens were originally devised back in the 1970s to deal with novel reward methods devised by employers (sometimes these methods were used to circumvent ‘wage freezes’ applied by the Governments of the day). Whilst these rules may now therefore seem a touch anachronistic, they remain on the statute books and must still be recognised.

If the costs to the employer represent vouchers (whether cash, non-cash or credit token) provided to a number of employees, the costs are apportioned to each employee on a just and reasonable

Continue reading the full document
To gain access to additional expert tax guidance, workflow tools, and tax research, register for a free trial of Tolley+â„¢
Paul Tew
Paul Tew

Writer and advisor at Paywatch


Paul Tew is a freelance adviser, primarily in the areas of pay, personal taxation and remuneration planning. A frequent contributor to technical journals on pay and benefits issues, having written for the "In Business" section of the Times. Paul continues to supply articles for various recognised professional publications including Pay and Benefits magazine, Taxation magazine and Company's Secretary's Review. Paul also has had several loose leaf and bound books published on a variety of subject matter including PAYE, NIC, Sickness and Maternity Pay.Paul has written and presented training courses as well as headed up payroll and employment help desks and acted as an assessor for recognised Payroll/HR qualifications. Paul previously worked in the healthcare and oil sectors managing Pay and benefit services, so has many years of experience in dealing with PAYE and employment compliance issues across a broad range of industries and organisations.

Powered by
  • 11 Jan 2024 12:01

Popular Articles

Carried-forward losses restriction

Carried-forward losses restrictionOverview of the carried-forward loss restrictionAn important restriction in the use of losses carried forward was introduced by Finance (No 2) Act 2017. Subject to a de minimis of £5m (known as the deductions allowance), most carried-forward losses are restricted to

14 Jul 2020 11:09 | Produced by Tolley Read more Read more

Married couple’s allowance

Married couple’s allowanceThe married couple’s allowance (MCA) is only available if one of the two spouses or civil partners was born before 6 April 1935. This means that one member of the couple must be at least 89 years old on 5 April 2024 to qualify for an allowance in the 2023/24 tax year.There

14 Jul 2020 12:13 | Produced by Tolley Read more Read more

Maintenance payments

Maintenance paymentsMaintenance payments are payments made by a taxpayer to their former or separated spouse / civil partner for the maintenance of that person or their children. To obtain any tax relief for maintenance payments, one of the couple must have been born before 5 April 1935 and the

14 Jul 2020 12:12 | Produced by Tolley Read more Read more