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HMRC internal manual

National Insurance Manual

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HM Revenue & Customs
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Class 1: Vouchers - non-cash vouchers - definition

Regulation 1(2) Social Security (Contributions) Regulations 2001

Section 84 ITEPA 2003

The definition of “non-cash voucher” for NICs purposes is the same as that for tax purposes (see EIM16040). That is:

  • a voucher, stamp or similar document or token;
  • which is capable of being exchanged, either alone or with another such voucher, stamp or similar document or token;
  • immediately or after a time;
  • for money, goods or services.

The definition:

  • includes a cheque voucher, a transport voucher and, from 6t h April 2005, a childcare voucher; but
  • excludes a cash voucher (see NIM02497).

A cheque voucher means a cheque:

  • provided for an employee; and
  • intended for use by the employee wholly or mainly for the payment for:

    • particular goods or services; or
    • goods or services of one or more particular types.

A transport voucher means a ticket, pass, document or token intended to enable a person to obtain passenger transport services. The voucher does not have to be capable of being exchanged.

So a travel pass which an employee simply has to show in order to use, for instance, a bus is a transport voucher. As, too, is a season ticket.

A childcare voucher means a voucher, stamp or similar document or token intended to enable a person to obtain the provision of childcare, whether or not the voucher has to be exchanged to get the care. So an electronic voucher - ie, one that pays for childcare electronically and doesn’t involve a paper voucher - is within this definition.

For details of the types of non-cash voucher which are disregarded for NICs purposes, see NIM02416.