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).

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)

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).

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)

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)

[F8 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

F8 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)

7.—(1) A non-cash voucher provided in connection with all or part of the costs of and expenses of child care (but not school fees) by an employed earner in connection with a child not exceeding the age of 16 for whom he has parental responsibility. U.K.

For the purposes of this paragraph child care includes—

(a) care provided in accordance with the provisions of [F9 Part 10(2) or 10A] of the Children Act 1989 (child minding and day care for young children)F10 ;

(b) in the case of a child aged 8 or over, care provided by a child minder;

(c) in the case of a child under the age of 8, care provided by a child minder where that care does not exceed, in total, two hours a day;

(d) care provided by a nanny or a relative (within the meaning respectively of section 71(13) and 105(1) of the Children Act 1989);

(e) care provided during out-of-school hours or during school holidays; and

(f) full-time and part-time care.

(2) In the application of sub-paragraph (1) to Northern Ireland—

(a) paragraph (b) shall have effect with the subtitution for “aged 8 or over” of “ aged 12 or over ”; and

(b) paragraph (c) shall have effect with the substitution for “under the age of 8” of “ under the age of 12 ”.

Textual Amendments

F9 Words in sch. 3 Pt. 05 para. 7(1)(a) 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)(d)

F10 1989 c. 41: Schedule 9 was amended by section 116 of the Courts and Legal Services Act 1990 (c. 41) and section 582(1) of the Education Act 1996 (c. 56).

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.