The Social Security (Contributions) Regulations 2001

PART V U.K. CERTAIN NON-CASH VOUCHERS TO BE DISREGARDED AS PAYMENTS IN KIND

1.—(1) Subject to sub-paragraph (2), a non-cash voucher provided, to or for the benefit of the employed earner, by the employer or any other person on his behalf is to be disregarded in the calculation of an employed earner’s earnings by virtue of paragraph 1 of Part II only if it falls within any of paragraphs 2 to 8. U.K.

[F1 (2) A non-cash voucher may also be disregarded—

(a) by virtue of paragraph 7D of Part VIII (car fuel); or

(b) in the circumstances specified in paragraph 4 of Part X (payments by way of [F2 incidental overnight expenses]).]

Textual Amendments

F1 Sch. 3 Pt. 05 para. 1(2) substituted (6.4.2002) by Social Security (Contributions) (Amendment No.2) Regulations 2002 (S.I. 2002/307), regs. 1(1), 6

F2 Words in sch. 3 Pt. 05 para. 1(2)(b) substituted (6.4.2004) by The Social Security (Contributions, Categorisation of Earners and Intermediaries) (Amendment) Regulations 2004 (S.I. 2004/770), regs. 1(1), 28(3)(a)

2.  A non-cash voucher which is not treated as [F3 general earnings] from employment for the purposes of [F4 section 86 of ITEPA 2003 (transport vouchers under pre-26th March arrangements).] U.K.

Textual Amendments

F3 Words in sch. 3 Pt. 05 para. 2 substituted (6.4.2004) by The Social Security (Contributions, Categorisation of Earners and Intermediaries) (Amendment) Regulations 2004 (S.I. 2004/770), regs. 1(1), 28(3)(b)(i)

F4 Words in sch. 3 Pt. 05 para. 2 substituted (6.4.2004) by The Social Security (Contributions, Categorisation of Earners and Intermediaries) (Amendment) Regulations 2004 (S.I. 2004/770), regs. 1(1), 28(3)(b)(ii)

[F5 This paragraph only applies in the case of an employee who is in lower paid employment, within the meaning of section 217 of ITEPA 2003]

Textual Amendments

F5 Words in sch. 3 Pt. 05 para. 2 substituted (6.4.2004) by The Social Security (Contributions, Categorisation of Earners and Intermediaries) (Amendment) Regulations 2004 (S.I. 2004/770), regs. 1(1), 28(3)(b)(iii)

[F6 3.   A non-cash voucher exempted from liability to income tax under Chapter 4 of Part 3 by virtue of sections 266(1)(a) or 269 of ITEPA 2003 (exemptions: non-cash vouchers and credit-tokens).] U.K.

Textual Amendments

F6 Sch. 3 Pt. 05 paras. 3 substituted for Sch. 3 Pt. 05 paras. 3 4 (6.4.2004) by The Social Security (Contributions, Categorisation of Earners and Intermediaries) (Amendment) Regulations 2004 (S.I. 2004/770), regs. 1(1), 28(3)(c)

F6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F6 Sch. 3 Pt. 05 paras. 3 substituted for Sch. 3 Pt. 05 paras. 3 4 (6.4.2004) by The Social Security (Contributions, Categorisation of Earners and Intermediaries) (Amendment) Regulations 2004 (S.I. 2004/770), regs. 1(1), 28(3)(c)

F6 4.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U.K.

Textual Amendments

F6 Sch. 3 Pt. 05 paras. 3 substituted for Sch. 3 Pt. 05 paras. 3 4 (6.4.2004) by The Social Security (Contributions, Categorisation of Earners and Intermediaries) (Amendment) Regulations 2004 (S.I. 2004/770), regs. 1(1), 28(3)(c)

[F7 5.   A non-cash voucher in respect of which no liability to income tax arises by virtue of section 266(1) of ITEPA 2003 to the extent that the voucher is used to obtain anything the direct provision of which would fall within any of the following provisions of that Act— U.K.

(a) section 246 (transport between work and home for disabled employees: general);

(b) section 247 (provision of cars for disabled employees);

(c) section 248 (transport home: late night working and failure of car-sharing arrangements).

Textual Amendments

F7 Sch. 3 Pt. 05 paras. 5 6 substituted for (10.12.2003) by The Social Security (Contributions) (Amendment No. 7) Regulations 2003 (S.I. 2003/2958), regs. 1(1), 5(2)

5A.   A non-cash voucher in respect of which no liability to income tax arises by virtue of section 266(2) of ITEPA 2003 if the voucher evidences entitlement to use anything the direct provision of which would fall within any of the following provisions of that Act— U.K.

(a) section 242 (works transport services);

(b) section 243 (support for public bus services);

(c) section 244 (cycles and cyclist’s safety equipment);

[F8 (d) section 319 (mobile telephones).]

Textual Amendments

F7 Sch. 3 Pt. 05 paras. 5 6 substituted for (10.12.2003) by The Social Security (Contributions) (Amendment No. 7) Regulations 2003 (S.I. 2003/2958), regs. 1(1), 5(2)

F8 Sch. 3 Pt. V para. 5A(d) added (14.8.2006) by The Social Security (Contributions) (Amendment No. 4) Regulations 2006 (S.I. 2006/2003), regs. 1, 2(2)

5B.   A non-cash voucher in respect of which no liability to income tax arises by virtue of section 266(3) of ITEPA 2003 if the voucher can be used only to obtain anything the direct provision of which would fall within any of the following provisions of that Act— U.K.

(a) section 245 (travelling and subsistence during public transport strikes);

(b) section 261 (recreational benefits);

(c) section 264 (annual parties and functions);

(d) section 296 (armed forces' leave travel facilities);

(e) section 317 (subsidised meals);

[F9 (f) section 320A (eye tests and special corrective appliances).]

Textual Amendments

F7 Sch. 3 Pt. 05 paras. 5 6 substituted for (10.12.2003) by The Social Security (Contributions) (Amendment No. 7) Regulations 2003 (S.I. 2003/2958), regs. 1(1), 5(2)

F9 Sch. 3 Pt. V para. 5B(f) added (14.8.2006) by The Social Security (Contributions) (Amendment No. 4) Regulations 2006 (S.I. 2006/2003), regs. 1, 2(3)

6.   A non-cash voucher to the extent that no liability to income tax arises by virtue of any of the following sections of ITEPA 2003— U.K.

(a) section 270 (exemption for small gifts of vouchers and tokens from third parties);

(b) section 305 (offshore oil and gas workers: mainland transfers);

(c) section 321 (suggestion awards);

(d) section 323 (long service awards);

(e) section 324 (small gifts from third parties).]

Textual Amendments

F7 Sch. 3 Pt. 05 paras. 5 6 substituted for (10.12.2003) by The Social Security (Contributions) (Amendment No. 7) Regulations 2003 (S.I. 2003/2958), regs. 1(1), 5(2)

[F10 Meal vouchers U.K.

6A.   15 pence per working day up to a maximum of £1.05 per week of the value of one or more non-cash vouchers which can only be exchanged for meals.]

Textual Amendments

F10 Sch. 3 Pt. 05 para. 6A inserted (26.7.2001) by The Social Security (Contributions) (Amendment No. 5) Regulations 2001 (S.I. 2001/2412), regs. 1, 5(2)(b)

[F11 Qualifying childcare vouchers U.K.

7.— (1) A qualifying childcare voucher, subject to the qualifications in sub-paragraphs (2) and (5).

(2) Where the chargeable expense of the voucher exceeds the exempt amount, only that amount shall be disregarded by virtue of sub-paragraph (1).

(3) The exempt amount is the amount found by the formula—

Here—

E is the sum of—

(a)

[F12 £55]; and

(b)

the administration costs for the qualifying childcare voucher;

QW is the number of qualifying weeks—

(a)

for which the earner has been employed by the secondary contributor during the tax year in which the qualifying childcare voucher is provided; and

(b)

for which no other qualifying childcare voucher has been provided by the secondary contributor.

(4) Where an earner has two or more employed earner's employments, the earnings from which fall to be aggregated in accordance with regulation 14 or 15, the reference to the secondary contributor in paragraph (b) of the definition of QW is a reference to the secondary contributor in respect any of those employments.

(5) An earner is only entitled to one exempt amount even if childcare vouchers are provided in respect of more than one child.

(6) For the purposes of this paragraph—

(a) “chargeable expense” has the meaning given in paragraph 14 of Schedule 2;

(b) “qualifying childcare voucher” and “qualifying week” have the meanings given in section 270A of the Income Tax (Earnings and Pensions) Act 2003;

(c) the administration costs for a voucher means the difference between the cost of provision of a voucher and its face value; and

(d) the face value of a voucher is the amount stated on or recorded in the voucher as the value of the provision of care for a child that may be obtained by using it.]

Textual Amendments

F11 Sch. 3 Pt. V para. 7 substituted (6.4.2005) by The Social Security (Contributions) (Amendment No. 3) Regulations 2005 (S.I. 2005/778), regs. 1(1), 9(2) (with reg. 10)

F12 Word in Sch. 3 Pt. V para. 7(3) substituted (6.4.2006) by The Social Security (Contributions) (Amendment No. 3) Regulations 2006 (S.I. 2006/883), regs. 1, 2(2)

8.  A non-cash voucher provided to or for the benefit of an employed earner in respect of employed earner’s employment by a person who is not the secondary contributor in respect of the provision of that voucher. U.K.