SE16140 - Vouchers and credit-tokens: amount and year of charge
Sections 141, 142 and 143 ICTA 1988
The following table shows the amount of the tax charge and the year in which liability arises in relation to the various types of voucher.
Type of voucher etc. |
Measure of liability |
When liability arises |
| Voucher exchangeable
for goods and services - a non-cash voucher
SE16040 Section 141(1) and (4) ICTA 1988 | An amount equal to the
additional expense incurred by the employer or third party
specifically for the purpose of providing
| Voucher “received” by employee
The year of assessment in which the provider of the voucher incurs the expense unless the employee does not receive the voucher until a later year, in which event liability falls in the year of receipt. Voucher “appropriated” to employee Each appropriation by the employee ranks as a receipt by the employee at the time of the appropriation, even though he may take possession of the voucher only at some later stage. |
| Cheque voucher
SE16050 Section 141(1) and (6) ICTA 1988 | As for voucher exchangeable for goods and services above. | The year of assessment in which the voucher is handed over in exchange for money, goods or services. (A voucher which is posted is treated as handed over at the time of posting). |
| Transport voucher
SE16060 Section 141(1) and (4) ICTA 1988 | An amount equal to the additional expense incurred by the employer or third party specifically for the purpose of providing the voucher itself and the passenger transport services which it can be used to obtain, less any part of the expense made good to the provider by the employee. | As for voucher exchangeable for goods and services above. |
| Credit-token
SE16090 Section 142(1) and (3) ICTA 1988 | An amount equal to the additional expense incurred by the employer or third party specifically for the purpose of providing the credit-token in or in connection with the provision of the money, goods or services obtained, less any part of the expense made good to the provider by the employee. No tax charge arises in respect of any initial or annual subscription incurred by the person providing the credit-token or in respect of any interest charged by a credit card company. | On each occasion that the employee uses the credit-token. |
| Cash voucher
SE16110 Section 143(1) ICTA 1988 | An amount equal to the sum of money for which the voucher is capable of being exchanged. Cash vouchers should be taxed under PAYE. | At the time when the employee receives the voucher, or, if the voucher is merely appropriated to the employee, the time of appropriation. |
