Employment Tax

Public transport

Produced by Tolley in association with Philip Rutherford
  • 22 Mar 2022 12:12

The following Employment Tax guidance note Produced by Tolley in association with Philip Rutherford provides comprehensive and up to date tax information covering:

  • Public transport
  • Introduction
  • Season tickets
  • Employer provides a loan for a season ticket
  • Employer provides a season ticket to the employee
  • Employer reimburses employee’s expenditure on a season ticket
  • Subsidised or free public bus services

Public transport


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. The provision of the majority of these benefits have tax, NIC and reporting requirements which are discussed in turn below.

Season tickets

One of the most common forms of financial assistance that an employer provides to an employee is in relation to season tickets. There are a number of ways in which this assistance is provided and the tax, NIC and reporting consequences change with each of these.

Employer provides a loan for a season ticket

If an employer provides a loan to an employee to purchase a season ticket, there are no tax or NIC consequences, and no reporting obligations as long as the outstanding value of all loans to the employee is less than £10,000.

If the loans outstanding to the employee are greater than £10,000 then there are only tax and NIC consequences, and reporting requirements if the loan is provided at an interest rate lower than HMRC’s official rate of interest.

For further detail on the

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