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HMRC internal manual

National Insurance Manual

Class 1: Vouchers - cash vouchers - definition

Regulation 1(2) Social Security (Contributions) Regulations 2001

Section 75 ITEPA 2003

The definition of “cash voucher” for NICs purposes is the same as that for tax purposes (see EIM16110). That is, a voucher, stamp or similar document capable of being exchanged for a sum of money which is:

  • greater than;
  • equal to; or
  • not substantially less than,

the cost of providing the voucher, stamp or similar document.

For the above purposes, it doesn’t matter whether the voucher, stamp or similar document is capable of being exchanged:

  • for goods or services as well as cash;
  • singly or with other vouchers, stamps or similar documents;
  • immediately or only after a period of time.


A voucher:

  • costs an employer £80 to provide
  • can be exchanged for:

    • £100 worth of goods; or
    • £90 cash.

This is a cash voucher because the amount of cash for which it can be exchanged - £90 - is greater than the cost of provision - £80.

For details of the amount of earnings included in a cash voucher, see NIM02498.