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Meaning of "cash voucher" | |
75 Meaning of “cash voucher” | |
(1) In this Chapter “cash voucher” means a voucher, stamp or similar document | |
capable of being exchanged for a sum of money which is— | |
(a) greater than, | 5 |
(b) equal to, or | |
(c) not substantially less than, | |
the expense incurred by the person at whose cost the voucher, stamp or similar | |
document is provided. | |
(2) For the purposes of subsection (1) it does not matter whether the document— | 10 |
(a) is also capable of being exchanged for goods or services; | |
(b) is capable of being exchanged singly or together with other vouchers, | |
stamps, or documents; | |
(c) is capable of being exchanged immediately or only after a time. | |
(3) Subsection (1) is subject to section 76 (sickness benefits-related voucher). | 15 |
76 Sickness benefits-related voucher | |
(1) This section applies where— | |
(a) the expense incurred by the person at whose cost a voucher, stamp or | |
similar document is provided (“the provision expense”) includes costs | |
to that person of providing sickness benefits (“sickness benefits costs”), | 20 |
(b) the voucher, stamp or document would be a cash voucher (apart from | |
this section) but for the fact that the sum of money for which it is | |
capable of being exchanged (“the exchange sum”) is substantially less | |
than the provision expense, and | |
(c) the whole or part of the difference between the exchange sum and the | 25 |
provision expense represents the sickness benefits costs. | |
(2) The voucher, stamp or document is a cash voucher within the meaning of this | |
Chapter if—![equation: equal[char[E],plus[times[char[P],char[E]],minus[char[D]]]]](missing.gif) | |
or![equation: plus[string["E is not substantially less than PE"],minus[char[D]]]](missing.gif) | |
| 30 |
where— | |
E is the exchange sum, | |
PE is the provision expense, and | |
D is the amount of the difference between E and PE which represents the | |
sickness benefits costs. | 35 |
(3) In this section “sickness benefits” mean benefits in connection with sickness, | |
personal injury or death. | |
77 Apportionment of cost of provision of voucher | |
If a person incurs expense in or in connection with the provision of vouchers, | |
stamps or similar documents for two or more employees as members of a | 40 |
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group or class, the expense incurred in respect of one of them is to be such part | |
of that expense as is just and reasonable. | |
Cash vouchers: exceptions | |
78 Voucher made available to public generally | |
This Chapter does not apply to a cash voucher if— | 5 |
(a) it is of a kind made available to the public generally, and | |
(b) it is provided to the employee or a member of the employee’s family on | |
no more favourable terms than to the public generally. | |
79 Voucher issued under approved scheme | |
(1) This Chapter does not apply to a cash voucher received by an employee if— | 10 |
(a) it is issued under a scheme, and | |
(b) at the time when it is received the scheme is a scheme approved by the | |
Inland Revenue for the purposes of this section. | |
(2) The Inland Revenue must not approve a scheme for the purposes of this section | |
unless they are satisfied that it is practicable for income tax in respect of all | 15 |
payments made in exchange for vouchers issued under the scheme to be | |
deducted in accordance with PAYE regulations. | |
80 Vouchers where payment of sums exempt from tax | |
This Chapter does not apply to a cash voucher if it is— | |
(a) a document intended to enable a person to obtain payment of a sum | 20 |
which would not have constituted employment income if paid to the | |
person directly, or | |
(b) a savings certificate where the accumulated interest payable in respect | |
of it is exempt from tax (or would be so exempt if certain conditions | |
were met). | 25 |
Benefit of cash voucher treated as earnings | |
81 Benefit of cash voucher treated as earnings | |
(1) The cash equivalent of the benefit of a cash voucher to which this Chapter | |
applies is to be treated as earnings from the employment for the tax year in | |
which the voucher is received by the employee. | 30 |
(2) The cash equivalent is the sum of money for which the voucher is capable of | |
being exchanged. | |
Non-cash vouchers: introduction | |
82 Non-cash vouchers to which this Chapter applies | |
(1) This Chapter applies to a non-cash voucher provided for an employee by | 35 |
reason of the employment which is received by the employee. | |
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(2) A non-cash voucher provided for an employee by the employer is to be | |
regarded as provided by reason of the employment unless— | |
(a) the employer is an individual, and | |
(b) the provision is made in the normal course of the employer’s domestic, | |
family or personal relationships. | 5 |
(3) A non-cash voucher provided for an employee and appropriated to the | |
employee— | |
(a) by attaching it to a card held for the employee, or | |
(b) in any other way, | |
is to be treated for the purposes of this Chapter as having been received by the | 10 |
employee at the time when it is appropriated. | |
83 Provision for, or receipt by, member of employee’s family | |
For the purposes of this Chapter any reference to a non-cash voucher being | |
provided for or received by an employee includes a reference to it being | |
provided for or received by a member of the employee’s family. | 15 |
Meaning of "non-cash voucher" | |
84 Meaning of “non-cash voucher” | |
(1) In this Chapter “non-cash voucher” means— | |
(a) a voucher, stamp or similar document or token which is capable of | |
being exchanged for money, goods or services, | 20 |
(b) a transport voucher, or | |
(c) a cheque voucher, | |
but does not include a cash voucher. | |
(2) For the purposes of subsection (1)(a) it does not matter whether the document | |
or token is capable of being exchanged— | 25 |
(a) singly or together with other vouchers, stamps, documents or tokens; | |
(b) immediately or only after a time. | |
(3) In this Chapter “transport voucher” means a ticket, pass or other document or | |
token intended to enable a person to obtain passenger transport services | |
(whether or not in exchange for it). | 30 |
(4) In this Chapter “cheque voucher” means a cheque— | |
(a) provided for an employee, and | |
(b) intended for use by the employee wholly or mainly for payment for— | |
(i) particular goods or services, or | |
(ii) goods or services of one or more particular classes; | 35 |
and, in relation to a cheque voucher, references to a voucher being exchanged | |
for goods or services are to be read accordingly. | |
Non-cash voucher: exceptions | |
85 Non-cash voucher made available to public generally | |
This Chapter does not apply to a non-cash voucher if— | 40 |
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(a) it is of a kind made available to the public generally, and | |
(b) it is provided to the employee or a member of the employee’s family on | |
no more favourable terms than to the public generally. | |
86 Transport vouchers under pre-26th March 1982 arrangements | |
(1) This Chapter does not apply to a transport voucher provided for an employee | 5 |
of a passenger transport undertaking under arrangements in operation on 25th | |
March 1982 which meet the condition in subsection (2). | |
(2) The condition is that the arrangements are intended to enable the employee or | |
a member of the employee’s family to obtain passenger transport services | |
provided by— | 10 |
(a) the employer, | |
(b) a subsidiary of the employer, | |
(c) a body corporate of which the employer is a subsidiary, or | |
(d) another passenger transport undertaking. | |
(3) In this section— | 15 |
“passenger transport undertaking” means an undertaking whose | |
business consists wholly or mainly in the carriage of passengers or a | |
subsidiary of such an undertaking, and | |
“subsidiary” means a wholly-owned subsidiary within the meaning of | |
section 736 of the Companies Act 1985 (c. 6). | 20 |
Benefit of non-cash voucher treated as earnings | |
87 Benefit of non-cash voucher treated as earnings | |
(1) The cash equivalent of the benefit of a non-cash voucher to which this Chapter | |
applies is to be treated as earnings from the employment for the tax year in | |
which the voucher is received by the employee. | 25 |
(2) The cash equivalent is the difference between— | |
(a) the cost of provision, and | |
(b) any part of that cost made good by the employee to the person | |
incurring it. | |
(3) In this Chapter the “cost of provision” means, in relation to a non-cash voucher, | 30 |
the expense incurred in or in connection with the provision of— | |
(a) the voucher, and | |
(b) the money, goods or services for which it is capable of being exchanged, | |
by the person at whose cost they are provided. | |
(4) In the case of a transport voucher, the reference in subsection (3)(b) to the | 35 |
services for which the voucher is capable of being exchanged is to the | |
passenger transport services which may be obtained by using it. | |
(5) If a person incurs expense in or in connection with the provision of non-cash | |
vouchers for two or more employees as members of a group or class, the | |
expense incurred in respect of one of them is to be such part of that expense as | 40 |
is just and reasonable. | |
(6) This section is subject to section 89 (reduction for meal vouchers). | |
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