We are relocating from Surrey to central London. Staff who drive will now use the train/tube adding 2 hours to their day. We will be paying their travel costs. In a previous business when this happened to me it was not treated as a taxable benefit but I cannot find out how they acheived this.
Can anyone please advise as I am getting conflicting advice.
Apparently The HMRC Employers Advice CD-ROM 2006 offers the following guidance:
Where an employer pays the provider for the cost of transport that an employee has arranged for travel between his or her home and permanent workplace Class 1 NICs is payable but it is not subject to PAYE; it should be entered on the P11D (section B) and on the P9D (section A(2)). Not subject to Class 1A NICs.
Other info says who pays who is irrelevant
JEREMY MORTON