Vouchers are taxable as follows:
- cash vouchers: on amount for which voucher can be exchanged;
- non-cash vouchers: on cost to employer less any contribution from employee;
- transport vouchers: on cost to employer less any contribution from employee;
- luncheon vouchers: on excess over 15p per day (exemption to be abolished from 2012).
(ITEPA 2003 sections 73-89, 95, 96, 268-270, 362)
HMRC has provided guidance on the employer’s obligations when he provides vouchers to employees, visit the 'related links' section of this page for further information.
