Can an employee return unused childcare vouchers to the employer? If so, are they put through the payroll as income to collect Tax & NICs?
On the whole vouchers cannot be returned. However HMRC accept that unforeseen circumstances can arise which mean that a voucher cannot be used for the purpose for which it was intended – for example, death of the child, redundancy of one parent etc. In this case vouchers returned for cash would be liable for tax and Class 1 NICs in the normal way.
Related Questions
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