Season tickets and bus services

Produced by a Tolley Employment Tax expert
Employment Tax
Guidance

Season tickets and bus services

Produced by a Tolley Employment Tax expert
Employment Tax
Guidance
imgtext

Introduction

Employers may provide employees with assistance towards meeting the costs of public transport which the employee uses for commuting to and from their permanent place of work. In the majority of cases, this type of benefit would be subject to tax and NIC in full as well as reporting consequences. However, there are some common ways that an employer may assist an employee with their commuting costs that are exempt from tax and NIC. These are discussed below.

See Simon’s Taxes E4.715A.

Season tickets

There are a number of ways in which an employer might provide assistance in the purchase of an annual travel season ticket to an employee. The method of provision will dictate the tax, NIC and reporting consequences which are set out below.

Employer provides a loan for a season ticket

It is relatively common for an employer to make loans available for the purchase of season tickets. Generally, these will be within the exemption for loans which do not exceed £10,000. See the Loans provided to employees guidance note for details.

Employer

Continue reading the full document
To gain access to additional expert tax guidance, workflow tools, generative tax AI, and tax research, register for a free trial of Tolley+™
Powered by Tolley+
  • 17 Jun 2025 06:21

Popular Articles

Enterprise investment scheme tax relief

Enterprise investment scheme tax reliefOverview of EIS tax reliefsThe enterprise investment scheme (EIS) offers significant tax reliefs to encourage individuals to invest money in qualifying shares issued by qualifying unquoted companies. The scheme is designed to encourage investment in small,

14 Jul 2020 11:36 | Produced by Tolley Read more Read more

Wholly and exclusively

Wholly and exclusivelyFor both income tax and corporation tax purposes, one of the fundamental conditions that must be satisfied for an item of expenditure to be deductible, is that it must incurred ‘wholly and exclusively’ for the purposes of the trade, profession or vocation. References to CTA

14 Jul 2020 14:00 | Produced by Tolley Read more Read more

Group relief for carried-forward losses

Group relief for carried-forward lossesThis guidance note examines in detail the relief available to groups for carried-forward losses. The scope excludes the treatment of specialist businesses such as banks, insurance companies and oil and gas companies.From 1 April 2017, companies can surrender

14 Jul 2020 11:50 | Produced by Tolley Read more Read more