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 F1employee—

i

to the person incurring it, and

ii

on or before 6 July following the tax year which contains the occasion in question.

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.