NIM02461 - Class 1: Vouchers - non-cash vouchers - calculation of the amount of earnings - the chargeable expense

Sections 3(1) and 6(1) Social Security Contributions & Benefits Act 1992

Paragraph 14 of Schedule 2 Social Security (Contributions) Regulations 2001

With the exception of a meal voucher which can be exchanged only for a meal costing more than 15 pence (see NIM02465), the amount of a non-cash voucher (see NIM02413) to be included in an employee’s earnings is:

• the amount equal to the expense incurred by the person at whose cost the voucher is obtained ("the chargeable expense"); less
• any part of the expense made good to that person by the employee.

Liability for Class 1 NICs arises at the time the non-cash voucher is provided to the employee.

For:

• examples illustrating the general rule for calculating the chargeable expense, see NIM02462
• details of how to calculate: