tax on tesco vouchers

[tuts1230]

My company to save money going on to basic pay gave us £300 in Tesco vouchers at chrismas which I expect to be taxed as a gift in kind and taxed on 2012/13 tax form but they have taxed us this payday and take national insurance as well resulting £91 or so from our wages.Surely a gift voucher that can only be exchanged for goods is not cash and not liable to NI much in the same way as having a company car or am I mistaken,any help would be appreciated.thanks.

[pawncob]

Benefit is taxable in 2011/12.
(car benefits are subject ti NICs as well.)

[JRG]

As far as I know, if a gift voucher can be used as cash (e.g. to buy goods) then it is treated as cash.

If it had been treated as benefit in kind it would have been taxed on the current 2011/12 tax form, not the 2012/13 tax form.

If you've paid employee N.I. on the value of the gift voucher you should check that employer N.I. has also been paid.

Personally, if I had been told I was going to pay tax and N.I. on the gift voucher, I'd have rather had the money. Perhaps you need to ask your company what they were up to.