Question 1

If I sell a gift voucher, how do I account for the money through the till?"

Accepted Answer

You need to record any income, and this includes vouchers. Ring this through your till as a product named ‘Voucher’. This should not assign to either food or drink but to ‘other’ (contact your till company if you’re not able to do this yourself).
This way you can take payment in cash or card, provide a till receipt to your customer, and it is clear on Z reports where the money came from for both your accountant and stocktaker.

Question 2

How do I ring the gift voucher through my till at the point the customer pays their bill on the day?

Accepted Answer

The money has already been rung through your till when the voucher was bought, so at the point your customer comes to pay their bill, you simply ring the items bought through your till as normal, and then apply an overall ‘voucher discount ‘of £50 for example.
Contact your till company if you are unable to set this up through your till.
This way means that you can present your customer with an exact outstanding amount on their final bill, less the amount already paid.
REMEMBER: When telling your accountant about your daily takings, tell them about cash, card and vouchers redeemed (used).

Question 3

Is a money from the sale of a gift voucher liable to V.A.T and if so, at what rate?"

Accepted Answer

Yes, VAT is due on money received as a voucher. It is charged at the standard rate which is currently 20%

Question 4

What if a customer redeems a gift voucher for £50 but spends less, do I have to give them change in cash?"

Accepted Answer

In the UK, you are not obliged to do so. It is a good idea to set out your policy on this matter clearly in your terms and conditions of use (an example that you can customise is available here)(undefined). You can give change as another voucher, as cash or not at all.

Question 5

Will gift vouchers affect my stocktaking results?

Accepted Answer

Each item purchased should go through your till as normal, the only difference is that instead of paying the full amount, they pay less. This means that all stock items are still accounted for on stock reports.

Question 6

Should I provide terms and conditions for gift vouchers?

Accepted Answer

This would be a good practise. It gives you the chance to be clear from the outset on policies such as payment due dates and refunds.
The purchaser of a voucher is bound by terms made known before, or at the time of purchase.
We have an example that you can customise for your needs here(undefined)

Question 7

Can I take payments for gift vouchers over the phone?

Accepted Answer

You can but it is not as secure. The process is known as a CNP (card not present) transaction. Your merchant processor may charge more for handling these transactions as they are unsecure and more open to fraud.
To take payment this way you would key the card details into your PDQ machine manually.
Do not write down the card details, as these could be used for fraud.
Check that any data you do take for transactions is covered by data protection rules.
Do not take payments by customers giving card details over email as this is not secure.

Question 8

What if I use a voucher as a prize or promotional giveaway.

Accepted Answer

Similarly, to using gift vouchers, you ring things through as normal and then either discount by £x or 100% if the voucher is for a specific thing (e.g. 8 pints of beer).
REMEMBER: When telling your accountant about your daily takings, tell them about any promo vouchers used.

Question 9

Can I give members of staff gift vouchers as a Christmas bonus?

Accepted Answer

You cartainly can. These do represent a 'benefit in kind' so make sure you tell your payroll provider about the amount given. For tax purposes, this amount will be treated in the same way as if it were a cash bonus. 
Over the course of a year you can provide employees with under £50 worth of 'benefits' before tax applies, although gift vouchers are always taxed and treated as 'cash'.

The hospitality
business specialists

Deposits and Vouchers Guide

Terms & Conditions templates?

VOUCHERS F.A.Q.s

DEPOSITS F.A.Q.s

Contact us