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HMRC internal manual

Employment Income Manual

Vouchers and credit-tokens: action description

Part 3 Chapter 4, Section 362 and 363 ITEPA 2003

The computation of liability will depend on the particular arrangements under which the voucher or credit-token is supplied or used. In cases of doubt it is essential to obtain or see a sample of the relevant voucher or token together with any brochure or promotional literature relating to its use.

Where a voucher or credit-token has been used in a PAYE avoidance scheme see EIM11910.

The following table summarises the steps to take.

Action Instructions
Identify the type of voucher or token. You need to establish how the voucher or token is intended to be used and what the employee is able to obtain by its use. The legislation defines the following types of voucher or token:  
  * non-cash vouchers  
  * those exchangeable for goods and services EIM16040
  * cheque vouchers EIM16048
  * childcare vouchers EIM16055
  * transport vouchers EIM16060 to EIM16070
  * credit-tokens EIM16090
  * cash vouchers. EIM16110
  Check the voucher or token has been received by, or appropriated to, the employee by reason of the employment. EIM16120 to EIM16130
  Calculate the amount of earnings and determine in which year the liability falls. EIM16140 to EIM16160
  Make any allowable deductions that are claimed. EIM16170
  Consider whether a dispensation may be appropriate. EIM16180