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HMRC internal manual

National Insurance Manual

HM Revenue & Customs
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Class 1: Vouchers - non-cash vouchers - calculation of the amount of earnings - the chargeable expense - meal vouchers which can be exchanged only for a meal costing more than 15 pence

Paragraph 14(3)(b) of Schedule 2 Social Security (Contributions) Regulations 2001

NIM02467 explains the general rule for calculating the amount of a non-cash voucherto be included in an employee’s earnings. That rule is modified for a meal voucher whichcan be exchanged only for a meal costing more than 15 pence.

The chargeable expense is reduced by the amount by which it exceeds the face value of thevoucher.


A meal voucher has a face value of £2.00. The cost to the employer of providing thevoucher is £2.25. The employee does not make good any part of the cost.

The amount of earnings is £2.25 less £0.25 (the amount by which the chargeable expenseexceeds the face value of the voucher) = £2.00.