Work bus service

By Tolley in association with Philip Rutherford

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

  • Work bus service
  • Introduction
  • Works bus service
  • Subsidised or free public bus services


There are two separate exemptions available for the provision of bus services to employees. The first relates to works buses and the second to subsidised or free transport arising by way of an employer’s subsidies of public bus services.

Works bus service

Provided a number of conditions are met, the provision of a works bus service is exempted from tax, NIC and reporting obligations.

ITEPA 2003, s 242

The conditions that must be satisfied are:

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