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 voucher to be included in an employee’s earnings. That rule is modified for a meal voucher which can 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 the voucher.
A meal voucher has a face value of £2.00. The cost to the employer of providing the voucher 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 expense exceeds the face value of the voucher) = £2.00.