NIM02432 - Class 1: Vouchers - non-cash vouchers - exemptions - small gifts of vouchers and tokens by third parties

Regulation 25 and paragraph 6(a) of Part 5 of Schedule 3 Social Security (Contributions) Regulations 2001

Section 270 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 1999, a non-cash voucher which is exempt from income tax by virtue of the above tax provision is so disregarded.

For details of the tax position of such vouchers, see EIM16025.