NIM02497 - Class 1: Vouchers - cash vouchers - definition

Regulation 1(2) Social Security (Contributions) Regulations 2001

Section 75 ITEPA 2003

The definition of 鈥渃ash voucher鈥� for NICs purposes is the same as that for tax purposes (see EIM16110). That is, a voucher, stamp or similar document capable of being exchanged for a sum of money which is:

  • greater than;
  • equal to; or
  • not substantially less than,

the cost of providing the voucher, stamp or similar document.

For the above purposes, it doesn鈥檛 matter whether the voucher, stamp or similar document is capable of being exchanged:

  • for goods or services as well as cash;
  • singly or with other vouchers, stamps or similar documents;
  • immediately or only after a period of time.

Example

A voucher costs an employer 拢80 to provide, it can be exchanged for 拢100 worth of goods or 拢90 cash.

This is a cash voucher because the amount of cash for which it can be exchanged - 拢90 - is greater than the cost of provision - 拢80.

For details of the amount of earnings included in a cash voucher, see NIM02498.