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HMRC internal manual

National Insurance Manual

Class 1: Vouchers - non-cash vouchers - definition - examples

NIM02413 explains what a non-cash voucher is for NICs purposes. That definition includes:

  • a transport voucher; and
  • a cheque voucher.

The following examples illustrate these definitions.

Example 1

An employer provides an employee with a book token worth £100. To get books to that value, the employee must exchange the token by handing it to the shop assistant. So the book token is a non-cash voucher.

Example 2

An employer provides an employee with a rail ticket for travelling between their home and work. To obtain travel, the employee simply shows the ticket to the train ticket inspector.

As the ticket enables the employee to obtain transport services, it is a transport voucher. This comes within the meaning of non-cash voucher.

Example 3

An employer allows an employee to use the company’s credit card to obtain £100 cash to buy some personal items. The credit card is not a non-cash voucher because it is not capable of being exchanged.

For details of:

  • the types of non-cash voucher which are disregarded for NICs purposes, see the table at NIM02416 
  • payments made by a company credit card, see NIM02090.