Public transport

3 mins

Our experts at DSR Tax Refunds know how hard it is to find good, quality information about HMRC’s tax regulations that is easy to understand, and that’s why we have created these handy guides to tell you everything you need to know. Our aim is to make life easier for our clients and that is why we want to share our expertise with you. You can also call our friendly team on 0330 122 9972 – we’re the tax experts you can trust.
What is included in public transport costs?
If you are an employer who covers your employees’ public transport costs, this might be classed as a taxable benefit to your employees. This means that you might have to report these costs to HMRC and there might be additional PAYE tax and National Insurance to deduct and pay as a result.
When referring to public transport costs, HMRC includes all the following:

Are there any exemptions?
If you are contributing to subsidised or free public bus transport, you don’t need to report these costs to HMRC and there would be no additional tax or National Insurance to pay as a result of these expenses. For example, if your company provides the finance to a local bus company to set up a free or reduced rate bus service to provide transport to your employees in their travel to and from work, this would be classed as an exemption and you wouldn’t need to report these costs on your P11D form. This allows you to provide transport for your employees without needing to operate a works bus service yourself.
If these costs form part of a salary sacrifice arrangement, you will need to report these expenses to HMRC.
How do you report to HMRC and pay?
If the public transport costs aren’t covered by an exemption, you need to report them to HMRC and there might be additional tax and National Insurance to pay depending on circumstances surrounding the transport costs. You need to report these in the following ways:

How can DSR Tax Refunds help?
We aim to make life as simple as possible for our clients and that includes giving you the information you need to make your taxes (and your life) simpler and less stressful.  Our team of experts at DSR Tax Refunds are always on hand to help our clients and our excellent standing with HMRC means that we can make sure you don’t fall foul of their regulations, while claiming your maximum tax relief. We can even take care of all that paperwork and deal with HMRC on your behalf too. Call our friendly team on 0330 122 9972 – we’re the tax experts you can trust.
This page was last updated on 07/11/2018.

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