Income Tax (Earnings and Pensions) Act 2003 section 95

Disregard for money, goods or services obtained

Section 95 prevents double taxation when vouchers or credit-tokens are provided to employees, by ensuring that the money, goods or services obtained through them are disregarded once the cash equivalent has already been taxed as earnings.

• Once the cash equivalent of a voucher or credit-token is taxed as earnings, the money, goods or services actually received in exchange are disregarded for income tax purposes, preventing a double charge
• The disregard applies to items obtained by the employee or another person (for vouchers) or by the employee or a family member (for credit-tokens)
• The disregard does not affect any deductions the employee may be entitled to claim where a non-cash voucher or credit-token has been provided
• For childcare vouchers and transport vouchers, the services obtained are specifically defined as childcare provision and passenger transport services respectively