NIM02462 explains the general rule for calculating the amount of
a non-cash voucher – the chargeable expense - to be included
in an employee's earnings. That rule is modified for a meal voucher
which can be exchanged only for a meal costing more than 15 pence.
The amount of the chargeable expense is reduced by the amount
by which it exceeds the face value of the voucher.
A meal voucher has a face value of £2.00. The cost to the
employer of providing the voucher is £2.25. The employee does
not make good any part of the cost.
The amount of earnings is £2.25 less £0.25 (the
amount by which the chargeable expense exceeds the face value of
the voucher) = £2.00.
