The direct cost to the employer is simply the service charge at the rate you are set. VAT is of reclaimable as long as you are VAT registered.

However, the company makes a substantial saving per employee as the voucher forms part of the employees remuneration. And it is NOT subject to employers NI, currently between 9.1 and 12.8%.

So on a voucher for £243 then the company would save £31.11 (at 12.8% NI) yet the voucher service charge at 5% is only £12.15 so the company make a net saving of £18.96. This would equate to £227 per annum, per employee