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HMRC internal manual

Tax Credits Technical Manual

Income: employment income rules - Specific payments and benefits in kind excluded from employment income for tax credit purposes: Vouchers and Credit Tokens

The Tax Credits (Definition and Calculation of Income) Regulations 2002, Reg 4(4) (item 11D)

A non-cash voucher or credit token, where no liability to income tax arises under Part 4, Chapter 6 of ITEPA 2003.

(See EIM16100 and EIM16105)

The Tax Credits (Definition and Calculation of Income) Regulations 2002, Reg 4(4) (item 11E)

A free or subsidised meal voucher or token if no liability to income tax arises in section 317 of ITEPA.

 

Note: With effect from 6 April 2017 the way in which many salary sacrifice and benefit in kind schemes are taxed will change, which means that some tax credit claimants will see an increase in their taxable income.

For the purposes of tax credits, where one of these schemes is in operation the taxable income figure should be used.