Part 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).
F1(1A)
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.