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Benefit in kind on bus travel passes

Query as to whether bus passes are P11d benefits

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I have a client who has recently started paying for an employee's monthly bus travel pass. It relates to transport between home  and a permanent place of work. It's something I've not come across before. I'm sure this looks like a P11d benefit. But I'm usure as to whether there is an exemption, due to it being  public bus transport?

Any advise on this would be appreciated.

Thank you

Replies (10)

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By SXGuy
18th Oct 2021 12:11

I don't know, however I'd probably consider the fact the journey is from work to home, which in itself isn't an allowable expense for anyone, and so id assume it would be a bik.

Happy to be corrected.

Thanks (2)
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By David Ex
18th Oct 2021 12:33

Presumably a payroll item as I’m guessing that the employer isn’t contracting with the bus company.

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Replying to David Ex:
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By Michael Davies
19th Oct 2021 10:16

Agreed.Pecuniary liability.

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Replying to David Ex:
Psycho
By Wilson Philips
20th Oct 2021 23:17

Agreed. Assuming that you meant payroll and P11D

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By David Ex
18th Oct 2021 13:06

For completeness, there is an exception for disabled employees:

https://www.gov.uk/hmrc-internal-manuals/employment-income-manual/eim10080

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Replying to David Ex:
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By Hugo Fair
18th Oct 2021 16:59

True ... but with the ludicrous catch-22 of:

"An employee who is able to carry out normal day-to-day activities at the time an employer is providing the employee with the means of travelling between home and work, or is reimbursing the cost of their home to work travel will not meet the terms of the section 246 definition."
...
"For the purpose of the exemption in Section 246, “disabled employee” means an employee who has a physical or mental impairment that has a substantial and long-term adverse effect on the employee’s ability to carry out normal day to day activities."

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Replying to Hugo Fair:
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By David Ex
18th Oct 2021 17:26

Hugo Fair wrote:

True ... but with the ludicrous catch-22 of:

I hadn’t read the details. Bizarre indeed.

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RLI
By lionofludesch
18th Oct 2021 13:51

"But I'm usure as to whether there is an exemption, due to it being public bus transport?"

So rail transport would be taxable and bus travel exempt ?

Seems unlikely.

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By Hugo Fair
18th Oct 2021 16:53

There are some weird rules when the employer is the provider (or contractor) of a dedicated bus service for use only by employees ... typically from the nearest train station to their factory/campus site.

But there's nothing special about general "public bus transport" ... and the journey between home and workplace is ordinary 'commuting' ... so no relevant special schemes or allowances for OP's scenario.

Employer could assist with a season-ticket loan (which is still a BiK but obviously at a lower value), but I've got no other suggestions.

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Pile of Stones
By Beach Accountancy
20th Oct 2021 21:54

Salary sacrifice?

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