NIM02423 - Class 1: Vouchers - non-cash vouchers - exemptions - transport home: late night working and failure of car-sharing arrangements
Regulation 25 and paragraph 5(c) of Part 5 of Schedule 3 Social Security (Contributions) Regulations 2001
Sections 266(1) and 248 Income Tax (Earnings and Pensions) Act 2003
NIM02416 shows the types of non-cash voucher (see NIM02413) that are specifically disregarded in calculating an employee’s earnings for Class 1 NICs purposes. Since 6th April 2001, a non-cash voucher which is exempt from income tax by virtue of the above tax provisions is so disregarded.
For details of the tax position of such vouchers, see EIM16100.