Providing employee with monthly bus pass.

Providing employee with monthly bus pass.

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We have an employee who lives close enough to our office to walk into work each day. We would like to buy him a monthly bus pass to enable him to carry out his duties visiting our clients in their own home.

My assumption is that, especially given there is no commuting, any benefit he takes from using the bus pass outside of work hours is incidental, and there would be no tax implications for the employee (not that the tax would amount to much anyway). However I can find no direct information on HMRC site to confirm this or to show that I'm wrong.

Any thoughts would be much appreciated.

Paul

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By neiltonks
31st Oct 2011 21:28

No benefit

So long as the business journeys made using the pass would at least match the cost of the pass if they were paid for separately, there is no taxable/NICable benefit arising from personal use. This would be the case even if the employee used the pass for commuting.

If you want an HMRC reference for this, have a look at http://www.hmrc.gov.uk/manuals/eimanual/EIM16066.htm

Neil.

 

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