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HMRC internal manual

Employment Income Manual

Vouchers and credit-tokens: deductions

Sections 362 and 363 ITEPA 2003

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

One point to consider is what, if any, deductions can be made from the amount chargeable.

A deduction from the amount treated as earnings can be made for any expenses that would have been deductible if the employee had paid for the goods or services in question out of his or her earnings. These cover expenses detailed in Part 5 Chapters 2 and 5 ITEPA 2003 including:

  • necessary expenses under Section 336 ITEPA 2003 (see EIM31620 onwards)
  • travelling expenses under Sections 337 or 338 ITEPA 2003 (see EIM31800 onwards)
  • professional subscriptions under Section 343 ITEPA 2003 (see EIM32880)
  • allowable expenses of ministers of religion under Section 351 ITEPA 2003 (see EIM60040 to EIM60048).