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<p dir="ltr"><strong>Season tickets and loans for public transport</strong></p>
<p dir="ltr">Offering discounted season tickets and loans for public transport can help to encourage employees to look at options for sustainable travel and commuting. Where a loan is provided to an employee to purchase a season ticket, there are no tax or National Insurance Consequences (NIC) as long as the total loan is below &pound;10,000. Details below explain how subsidised travel and loans can be put into place and the implications. Note they can be done in combination of each other.</p>
<p dir="ltr">Note - If employees are provided with a season ticket or vouchers to purchase a season ticket this will, however, be treated as a taxable benefit (same as paying more salary) and reporting obligations will apply.&nbsp;</p>
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<p dir="ltr" role="presentation"><strong>Subsidised Public Transport</strong></p>
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<p dir="ltr">If the company decides to partially subsidise public transport for example, contributing to subsidised or free public bus transport. You don&rsquo;t have to pay any tax or National Insurance on these costs or report anything to HMRC. So this is a staff incentive not taxed to support the move to public transport.</p>
<p dir="ltr">An example would be when you help finance a bus route that gives your employees free or reduced-rate transport between their homes and work or between workplaces.</p>
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<p dir="ltr" role="presentation"><strong>Loans made to employees to buy season tickets</strong></p>
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<p dir="ltr">Commuting costs can become a significant burden for many employees. Help retain your employees by enabling their access to affordable transport. Subsidising travel will either require your company to pay upfront for season tickets or various companies offer financial arrangements that can be underwritten by the company.</p>
<p dir="ltr">Interest free loans can help to enable cheaper annual passes which will encourage employees to continually choose public transport.&nbsp;</p>
<p dir="ltr">Loans can be provided at interest free rates if the company wishes to help subsidise the real cost of travel for staff, or with an interest rate determined by HMRC. Each approach results in a different tax implication for the company which can be explored in further depth with the Zerofy team.&nbsp;</p>
<p dir="ltr">There are a variety options available when selecting a staff travel subsidy. The Zerofy team recommend arranging a meeting to discuss and narrow the scope on how your company would wish to set up their staff travel subsidy.&nbsp;</p>
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<p dir="ltr"><strong>Benefits Overview</strong></p>
<p dir="ltr">a) Increased public transport usage.</p>
<p dir="ltr">b) Reduction in carbon emissions caused by commuting.&nbsp;</p>
<p dir="ltr">c) Additional value added to being an employee.&nbsp;</p>
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