Part 3Employment income: earnings and benefits etc. treated as earnings
Chapter 4Taxable benefits: vouchers and credit-tokens
Benefit of credit-token treated as earnings
94Benefit of credit-token treated as earnings
1
On each occasion on which a credit-token to which this Chapter applies is used by the employee in a tax year to obtain money, goods or services, the cash equivalent of the benefit of the token is to be treated as earnings from the employment for that year.
2
The cash equivalent is the difference between—
a
the cost of provision, and
b
any part of that cost made good by the employee to the person incurring it.
3
In this section the “cost of provision” means the expense incurred—
a
in or in connection with the provision of the money, goods or services obtained on the occasion in question, and
b
by the person at whose cost they are provided.
4
If a person incurs expense in or in connection with the provision of credit-tokens for two or more employees as members of a group or class, the expense incurred in respect of one of them is to be such part of that expense as is just and reasonable.