In this article
This section contains information about vouchers and credit cards that can be redeemed for goods and services.
Vouchers that are exchangeable for cash should be counted as earnings and added to the employee's other earnings through the payroll.
Vouchers that are only exchangeable for goods or services should be entered into this section, and the cost of the vouchers should be included in the employee's earnings when deducting Class 1 National Insurance (but not PAYE tax) through payroll.
There are some non-cash vouchers that you don’t need to deduct Class 1 National Insurance on. See a list of exempt vouchers.
When it comes to vouchers such as season tickets or Christmas gift vouchers, the same reporting method used for other non-cash items needs to be followed. However, this does not apply to childcare vouchers.
For more information on Section C, please visit this website.
Please note – This guideline is not exhaustive, and it does not cover every eventuality. Its main focus is on the most typical scenarios that usually happen in reality. It's important to be aware of other possibilities as well. If you need more detailed information, please refer to the HMRC website. Always consult a tax advisor if you have any doubts or queries.