Class 1: Vouchers - non-cash vouchers - calculation of the amount of earnings - the chargeable expense
Sections 3(1) and 6(1) Social Security Contributions & Benefits Act 1992
Paragraph 14 of Schedule 2 Social Security (Contributions) Regulations 2001
The amount of a non-cash voucher (see NIM02413) to be included in an employee’s earnings is:
- the amount equal to the expense incurred by the person at whose cost the voucher is obtained (“the chargeable expense”); less
- any part of the expense made good to that person by the employee.
Liability for Class 1 NICs arises at the time the non-cash voucher is provided to the employee.
- examples illustrating the general rule for calculating the chargeable expense, see NIM02462
details of how to calculate:
- the chargeable expense where a non-cash voucher is provided to two or more employees, see NIM02464
- from 6th April 2005, the exempt amount for a qualifying childcare voucher (see NIM02488), see NIM02470 (contents).