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Taxable benefits

If an employee does a salary sacrifice to cover home to work travel costs, paid for by the employer direct with the travel provider, is PAYE and NIC due on the travel cost?

Before the salary sacrifice the employee is over 8,500 pa, after less than 8,500
Sue Bloy

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In passing:
Home to work travel:
Can also be allowed tax free if employee is using a works van, and that is the only bit of private motoring he is doing. Other than that works buses as Neil says.

Can be allowed for tax (so no sacrifice needed, as employer may reimburse) if:
home to temp workplace, or
home is a workplace (home is not a workplace unless it is by necessity).

For practical advice see www.rossmartin.co.uk

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Probably not
There is no taxable benefit arising on subsidised public bus travel. For this reason, salary sacrifice schemes only cover this type of travel. They are pointless for rail, long distance bus or indeed any other type of travel because, as Phil points out, they would trigger tax & NI liabilities.

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