Part 5

Employment income: deductions allowed from earnings
Chapter 3

Deductions from benefits code earnings

Deductions where amounts treated as earnings under the benefits code

Deductions where non-cash voucher provided
362
1
A deduction from earnings is allowed if—
a
the earnings include an amount treated as earnings under section 87(1) or 87A(1) (amount in respect of benefit of non-cash voucher treated as earnings),
b
the voucher is exchanged for goods or services (whether in the tax year or a later year), and
c
had the employee incurred and paid the cost of the goods or services in the tax year, the whole or part of the amount paid would have been deductible from the earnings under Chapter 2 or 5 of this Part.
2
The deduction is equal to the lesser of—
a
the amount treated as earnings, and
b
the amount that would have been so deductible.
Words in s. 362(1)(a) substituted (with effect in accordance with Sch. 2 para. 62 of the amending Act) by Finance Act 2017 (c. 10), Sch. 2 para. 54