HMRC internal manual

National Insurance Manual

NIM02466 - 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

With the exception of a meal voucher which can be exchanged only for a meal costingmore than 15 pence (see NIM02468), the amount of a non-cashvoucher (see NIM02413) to be included in an employee’searnings 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 theemployee.


  • examples illustrating the general rule for calculating the chargeable expense, see NIM02467
  • details of how to calculate the chargeable expense where a non-cash voucher is provided to two or more employees, see NIM02469.