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HMRC internal manual

Employment Income Manual

Vouchers and credit-tokens: outline of the special rules

Part 3 Chapter 4 ITEPA 2003

For a description of the points to consider in a case involving vouchers or credit-tokens see EIM16030.

Although the voucher and credit-token legislation was formed to counter specific avoidance devices current at the time of its enactment, it is cast in wide terms.

Where an employee receives goods or services, by reason of the employment, which the employee does not pay for in full, the first step should always be to consider whether a voucher or credit-token was used to obtain them. If it was, there is a specific rule for determining the amount chargeable as shown in the table at EIM16140.

Note that the legislation:

  • covers all employees (including for 2015/16 and earlier, those in lower paid employment (see EIM20007))
  • applies to vouchers and credit-tokens provided by third parties as well as those provided by employers
  • charges a benefit in respect of vouchers or credit-tokens provided for, or received by, a relation of the employee (see EIM16080).

But in certain circumstances there may be no earnings chargeable on the employee. For a description of these see EIM16025.

For an action description see EIM16030.