Commentary on Sections Glossary Part 3: Employment income: earnings and benefits etc. treated as earnings Section 76: Sickness benefits-related voucher
300.This section modifies the meaning of “cash voucher” where the expense incurred by the provider of the voucher includes costs of providing sickness benefits and the sum of money for which the voucher can be exchanged is substantially less than the total cost to the provider. It derives from section 143(4) of ICTA.
301.The modification effectively removes the sickness benefits element when testing whether the voucher is a cash voucher.
302.Subsection (1) sets out the circumstances in which the section applies.
303.Subsection (2) provides two formulae to be used in determining whether the voucher is a cash voucher. The use of the formulae is best illustrated by examples:-
Example 1
The exchange sum E is £60.
The provision expense PE is £150
The cost of providing the sickness benefits is £90.