Expenses and benefits in kind: a guide to tax and NICs: Vouchers and credit-tokens  

For tax and NICs purposes all cash vouchers and most non-cash vouchers are taxable and liable for Class 1 NICs.

Where an employee uses a credit card provided by their employer to buy goods or services or to obtain money:

  • for tax, these payments are taxable, with some exceptions
  • for NICs, the employer must consider whether there is a payment of earnings for Class 1 NICs purposes. For more guidance on:
    • earnings for Class 1 NICs purposes, look at NIM02010,
    • payments made by a credit card provided by the employer, look at NIM02090 and NIM02190.

Follow this link for definitions of the terms used and this link for the exceptions from charge.

Follow this link for guidance on the amount chargeable to tax and liable for NICs and for guidance on when the charge arises.

For tax purposes vouchers and credit cards provided to an employee, or to a relation of the employee, by his or her employer are taxable. A voucher or credit card provided to the employee, or a relation of the employee, by a third party is also taxable if the reason it was provided was his or her employment.

A relation of the employee means his or her spouse, parent, child, spouse of a child and any dependant.

Follow this link for examples that show the amount chargeable to tax.

For NICs purposes the nature of the provider can affect liability. There are special rules where a third party provides a non-cash voucher.

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