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HMRC internal manual

National Insurance Manual

Class 1: Vouchers - cash vouchers - calculation of the amount of earnings

Section 6(1) Social Security Contributions & Benefits Act 1992

The amount of a cash voucher (see NIM02497) to be included in an employee’s earnings is an amount equal to the amount for which the voucher can be exchanged.

Liability for Class 1 NICs arises at the time the cash voucher is provided to the employee.


A voucher:

  • costs an employer £190 to provide
  • can be exchanged for £200 cash.

The amount to be included in the employee’s earnings for NICs purposes is £200.

To calculate the amount of earnings where a cash voucher is provided to two or more employees, see NIM02499.