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.
- 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.