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HMRC internal manual

Employment Income Manual

Vouchers and credit-tokens: non-cash voucher: when do earnings arise?

Section 82(3) and 88 ITEPA 2003

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

Earnings arise when a non-cash voucher is “received by or appropriated to an employee” (see EIM16120). There is no requirement that it has to be actually used. It must simply be capable of exchange, either singly or together with other vouchers, for goods and services, now or at some time in the future.

There is a different rule for cheque vouchers (see EIM16048). Earnings arise when a cheque voucher is handed over in exchange for money, goods or services. Where the handing over is done via the post it is treated as handed over at the time of posting.