Our experts at DSR Tax Claims know how hard it is to find good, quality information about HMRC’s tax regulations that is easy to understand, and that’s why we have created these handy guides to tell you everything you need to know. Our aim is to make life easier for our clients and that is why we want to share our expertise with you. You can also call our friendly team on 0330 122 9972 – we’re the tax experts you can trust.
What do HMRC consider to be a voucher?
If you provide vouchers to your employees, you need to report these to HMRC and there might be additional tax and National Insurance to pay. This includes vouchers which are exchangeable for cash as well as vouchers which can only be exchanged for goods or services. This guide doesn’t cover childcare vouchers, which are covered in our ‘Childcare’ guide.
How do you report these to HMRC and pay on them?
How you report these to HMRC and what additional PAYE tax or National Insurance should be paid all depends on whether you can exchange the vouchers for cash.
If the vouchers can be exchanged for cash, these count as earnings as far as HMRC is concerned. This means you need to add their value to the other earnings of the employee and deduct PAYE tax and Class 1 National Insurance through payroll, just as you do for their other earnings.
If the vouchers are only exchangeable for goods and services and not cash, you need to report the value of the vouchers to HMRC on your P11D form. You should then add the cost of them to your employee’s other earnings and deduct Class 1 National Insurance through your payroll. There is no PAYE tax to be paid on these kinds of vouchers.
There are some vouchers which are exempt from Class 1 National Insurance. These include vouchers to cover fuel for company vehicles, vouchers for workplace parking, meal vouchers and transport fir disabled employees. These vouchers still need to be reported to HMRC on your P11D form but there is no additional National Insurance to be deducted.
How can DSR Tax Claims help?
We aim to make life as simple as possible for our clients and that includes giving you the information you need to make your taxes (and your life) simpler and less stressful. Our team of experts at DSR Tax Claims are always on hand to help our clients and our excellent standing with HMRC means that we can make sure you don’t fall foul of their regulations, while claiming your maximum tax relief. We can even take care of all that paperwork and deal with HMRC on your behalf too. Call our friendly team on 0330 122 9972 – we’re the tax experts you can trust.
This page was last updated on 07/11/2018.