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HMRC internal manual

Employment Income Manual

Vouchers and credit-tokens: meaning of received by or appropriated to an employee

Sections 73(3), 81(1), 82(3) and 88 ITEPA 2003

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

A benefit in respect of a cash or non-cash voucher only applies where it is received by or appropriated to an employee.

A benefit will clearly arise if an employer gives an employee a written authority to a third party to provide money, goods or services to the employee and the employee hands the document to the third party in exchange for the goods, etc.

If, however, the employer makes documentary arrangements directly with a third party and simply tells the employee about them, no liability will arise under the voucher legislation unless a voucher provided for the employee is appropriated to him or her, for example, by attaching a stamp to a card bearing the employee’s name.