TCTM04108 - Income: Employment income rules: »Ê¹ÚÌåÓýapp cash equivalent of any non-cash voucher received by the claimant chargeable to income tax under section 87 of ITEPA 2003

»Ê¹ÚÌåÓýapp Tax Credits (Definition and Calculation of Income) Regulations 2002, Reg. 4(1)(c)

»Ê¹ÚÌåÓýappse are vouchers, which can be exchanged for money, goods or services.

»Ê¹ÚÌåÓýapp general rule is that income must include an amount equal to the additional expense incurred by the employer or third party specifically for the purpose of providing:

  • »Ê¹ÚÌåÓýapp voucher itself, and
  • »Ê¹ÚÌåÓýapp money, goods or services for which the voucher can be exchanged, less
  • Any part of the expense made good to the provider by the employee.

»Ê¹ÚÌåÓýapp full rules can be found via the first three rows in the table in the Employment Income Manual EIM16140

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.