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HMRC’s Employment Income Manual states that “PAYE is not generally due on a non-transferable store gift voucher.” However, this does not mean no income tax will be due
HMRC’s Employment Income Manual at EIM11845 (“PAYE: A special type of income: non-cash vouchers”) it is stated that “PAYE is not generally due on a non-transferable store gift voucher because neither the voucher nor the item that may be obtained using the voucher would be a readily convertible asset.”
This suggests to me that a non-transferable store gift voucher is outside the scope of PAYE. Consequently does this mean that when an employer pays his employee a bonus by way of non-transferable store gift vouchers that this is not taxable?
Presumably a benefit in kind charge does not arise on the employee if “PAYE is not generally due”; or is it simply the case that EIM11845 needs updating?
Query 18 179 – M Spencer
Reply from Sam Dewe
It is necessary to make a careful distinction between the questions of whether earnings are exempt from...
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