Commentary on Sections Example 3 Ne = £5,000; Da = 183; De = 183; Smg = 0 Section 362: Deductions where non-cash voucher provided
1577.This section applies where goods or services are obtained by an employee in exchange for a non-cash voucher for which an amount is treated as earnings by virtue of section 87(1). It derives from section 141(3) of ICTA. If, had the goods or services been provided by the employee, a deduction would be allowable by the provisions of Chapter 2 or 5 of this Part a deduction is allowable by virtue of this section.
1578.Subsection (1) sets out the conditions which must apply if a deduction from earnings is to be allowed.
1579.Subsection (2) quantifies the amount of the deduction. A limit is placed on the amount of the deduction allowed rather than providing the deduction is only to be set against the amount treated as earnings.