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Gov't reminding employers about voucher exemption option

It means employees can exchange vouchers for goods

Businesses on Island are being reminded of a scheme which could help their employees amid the current cost of living crisis.

Benefit in kind legislation means employers can consider offering vouchers to workers which can be redeemed for goods.

Some businesses, government says, already use this exemption to reward staff with shopping vouchers.

In contrast to monetary payments, government adds vouchers can be provided without being subject to income tax and national insurance deductions.

The benefit in kind exemption is based on £600 per employee, per employer.

Vouchers can only be redeemed for goods and cannot be exchanged for cash or be considered as readily-convertible assets by the Income Tax Division.

Details about benefit in kind legislation is available HERE.

Alternatively, further information is available by contacting the Income Tax Division on 685 400 or incometax@itd.treasury.gov.im.

 

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