C1Part 11Pay As You Earn
Chapter 4PAYE: special types of income
Income provided by means of vouchers and tokens
695Credit-tokens
1
On each occasion on which an employee uses a credit-token provided to the employee because of the employee’s employment to obtain—
a
money, or
b
anything which, if provided to the employee at the time when the credit-token is used, would fall to be regarded as a readily convertible asset,
the employer is to be treated, for the purposes of PAYE regulations, as making a payment of PAYE income of the employee of an amount equal to the amount ascertained under section 94(2) (benefit of credit-token treated as earnings).
F11A
If the credit-token is provided pursuant to optional remuneration arrangements, the reference in subsection (1) to the amount ascertained under section 94(2) is to be read as a reference to what that amount would be were the credit-token provided otherwise than pursuant to optional remuneration arrangements.
In this subsection “optional remuneration arrangements” is to be interpreted in accordance with section 69A.
2
The use of a credit-token by an employee to obtain money is excluded from the scope of this section if the money—
a
is used to meet expenses, and
b
if it had been paid directly to the employee by the employer, would not have been PAYE income except by virtue of section 70 (sums in respect of expenses).
3
PAYE regulations may make provision for excluding from the scope of this section any other description of use of a credit-token.
Pt. 11 power to amend or repeal conferred (21.7.2009) by Finance Act 2009 (c. 10), Sch. 58 para. 10