Commentary on Sections The Income Tax (Offices and Employments) Act 1944 (7&8 Geo. 6. (1943-44) c.12) Machinery of PAYE Section 693: Cash vouchers
2808.This section provides for PAYE to be operated on the provision of cash vouchers. It derives from section 203I of ICTA and from regulations.
2809.Subsection (1) provides that where a cash voucher is chargeable to tax under Chapter 4 of Part 3 of this Act  then the provision of the cash voucher is treated as a payment of PAYE income. The amount of the payment is the amount treated as earnings by section 81(1). The subsection also picks up the rule in section 143(1)(a) of ICTA that determines the time of payment. The cash voucher is treated as a payment of PAYE income at the time it is received by the employee.
2810.Subsections (2) and (3) together keep out of PAYE such things as traveller’s cheques used by employees while travelling in the performance of their duties. They deal respectively with vouchers used direct to meet expenses and vouchers used to get cash to meet expenses.
2811.There is also no requirement to operate PAYE on cash vouchers which are subject to a dispensation (see section 96) as Chapter 4 of Part 3 then does not apply to the voucher.
2812.“Cash voucher” is defined in section 721.