Section 94 — Income Tax (Earnings and Pensions) Act 2003: 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.