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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 - exemptions - (i) parking provision at or near work (ii) goods or services in connection with a taxable car, van or exempt heavy goods vehicle, or money spent on such goods or services

Regulation 25 and paragraph 3 of Part 5 of Schedule 3 Social Security (Contributions) Regulations 2001

NIM02416 shows the types of non-cash voucher (see NIM02413 ) that are specifically disregarded in calculating an employee’s earnings for Class 1 NICs purposes.

Parking provision at or near work

Since 6th April 2001, a non-cash voucher is disregarded so long as:

  • it is exempted from income tax under Chapter 4 (employment income: earnings and benefits etc treated as earnings) of Part 3 (taxable benefits: vouchers and credit-tokens) ITEPA 2003;
  • by virtue of section 266(1)(a) ITEPA 2003 (parking provision which, if provided directly, would fall within section 237(1) (parking provision and expenses)).

Goods or services in connection with a taxable car, van or exempt heavy goods vehicle, or money spent on such goods or services

Since 6th April 2004, a non-cash voucher is disregarded so long as:

  • it is exempted from income tax under Chapter 4 of Part 3 ITEPA 2003;
  • by virtue of section 269 ITEPA 2003 (exemption where benefits or money obtained with taxable car or van or exempt heavy goods vehicle).

Prior to 6th April 2004, such a non-cash voucher was disregarded administratively so long as there was a tax charge on the provision of the van under section 159AA ICTA 1988 or, from 6th April 2003, sections 114 and 154 ITEPA 2003.

For details of the tax position of both types of voucher, see EIM16100.