Section 695 — Income Tax (Earnings and Pensions) Act 2003: Credit-tokens

Credit-tokens 695 1 On each occasion on which an employee uses a credit-token provided to the employee because of the employee’s employment to obtain—

a money, or b anything which, if provided to the employee at the time when the credit-token is used, would fall to be regarded as a readily convertible asset, the employer is to be treated, for the purposes of PAYE regulations, as making a payment of PAYE income of the employee of an amount equal to the amount ascertained under section 94(2) (benefit of credit-token treated as earnings). 1A If the credit-token is provided pursuant to optional remuneration arrangements, the reference in subsection (1) to the amount ascertained under section 94(2) is to be read as a reference to what that amount would be were the credit-token provided otherwise than pursuant to optional remuneration arrangements. In this subsection “optional remuneration arrangements” is to be interpreted in accordance with section 69A.

2 The use of a credit-token by an employee to obtain money is excluded from the scope of this section if the money—

a is used to meet expenses, and b if it had been paid directly to the employee by the employer, would not have been PAYE income except by virtue of section 70 (sums in respect of expenses).

3 PAYE regulations may make provision for excluding from the scope of this section any other description of use of a credit-token.