Part 3

Employment income: earnings and benefits etc. treated as earnings
Chapter 4

Taxable benefits: vouchers and credit-tokens

Benefit of credit-token treated as earnings

Benefit of credit-token treated as earnings
94
1
On each occasion on which a credit-token to which this Chapter applies is used by the employee in a tax year to obtain money, goods or services, the cash equivalent of the benefit of the token is to be treated as earnings from the employment for that year.
2
The cash equivalent is the difference between—
a
the cost of provision, and
b
any part of that cost made good by the employee—
i
to the person incurring it, and
ii
on or before 6 July following the tax year which contains the occasion in question.
3
In this section the “cost of provision” means the expense incurred—
a
in or in connection with the provision of the money, goods or services obtained on the occasion in question, and
b
by the person at whose cost they are provided.
4
If a person incurs expense in or in connection with the provision of credit-tokens for two or more employees as members of a group or class, the expense incurred in respect of one of them is to be such part of that expense as is just and reasonable.
Words in s. 94(2)(b) substituted (with effect in accordance with s. 1(14) of the amending Act) by Finance (No. 2) Act 2017 (c. 32), s. 1(4)