SE16120 - Vouchers and credit-tokens: meaning of “received by or appropriated to” an employee

Section 141(2) and (5), Section 143(1) and (2) ICTA 1988

For a description of the points to consider in a case involving a voucher or credit-token see SE16030.

The charge in respect of a cash or non-cash voucher only applies where it is “received by or appropriated to” an employee.

A charge will clearly arise if an employer gives an employee a written authority to a third party to provide money, goods or services to the employee and the employee hands the document to the third party in exchange for the goods etc.

If, however, the employer makes documentary arrangements directly with a third party and simply tells the employee about them, no liability will arise unless a voucher provided for the employee is appropriated to him, for example, by attaching a stamp to a card bearing the employee's name.