Expenses and benefits: vouchers
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1. Overview
As an employer providing vouchers to your employees, you have certain tax, National Insurance or reporting obligations.
What鈥檚 included
This includes vouchers that are:
- exchangeable for cash
- only exchangeable for goods or services
There are different rules for childcare vouchers.
2. What to report and pay
What you have to report and pay to HMRC depends on whether the vouchers are exchangeable for cash.
Vouchers exchangeable for cash
These vouchers count as earnings, so you鈥檒l need to:
- add their value to the employee鈥檚 other earnings
- deduct and pay PAYE tax and Class 1 National Insurance through payroll
Vouchers exchangeable for goods and services only (non-cash vouchers)
You must:
- report the value on form P11D
- add the cost of the vouchers to the employee鈥檚 earnings when deducting Class 1 National Insurance (but not PAYE tax) through payroll
Exceptions
There are some non-cash vouchers that you don鈥檛 need to deduct Class 1 National Insurance on. See a
You鈥檒l still need to report these vouchers using the same reporting method as other non-cash vouchers.
3. Technical guidance
The following guides contain more detailed information: