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

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

Payment of the remittance basis charge

Payment of the remittance basis chargeRemittance basis chargeThe remittance basis charge is an annual charge payable by ‘long-term’ UK residents for the privilege of claiming the remittance basis.Taxpayers who wish to utilise the remittance basis (but do not qualify for it automatically) must pay

14 Jul 2020 12:52 | Produced by Tolley Read more Read more

Qualifying charitable donations

Qualifying charitable donationsCompanies can obtain corporation tax relief for qualifying payments or certain transfers of assets to charity under the qualifying charitable donations regime. Definition of qualifying charitable donationThe definition of ‘qualifying charitable donations’

14 Jul 2020 13:03 | Produced by Tolley Read more Read more

UK VAT invoice requirements

UK VAT invoice requirementsThis guidance note provides details of the information that must be shown on a valid tax invoice. Businesses supplying goods and services that are liable to the standard or reduced rate of VAT are required to issue a tax invoice to another VAT registered person.If the

14 Jul 2020 13:46 | Produced by Tolley Read more Read more