Employment Tax

Work bus service

Produced by Tolley in association with Philip Rutherford
  • 19 Oct 2021 23:15

The following Employment Tax guidance note Produced 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

Work bus service


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.

The conditions that must be satisfied are:

  1. the bus service must relate to qualifying journeys, and the main use of the bus service must be for qualifying journeys. These are journeys between the employee’s permanent place of work and their home. The entire journey need not be completed by the bus service. For example if the employee has to drive to a centr

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