Season ticket loan

[sc0tt]

Safe to say the contractor to perm role went sufficiently well.

Can anyone help with the cost of a season ticket loan showing the workings please?

Salary for example if £50k. Season ticket is £2500.

Unsure on how much of a saving it will offer me.

Thank you for your assistance.

[GT03ROB]

sc0tt said:

Safe to say the contractor to perm role went sufficiently well.

Can anyone help with the cost of a season ticket loan showing the workings please?

Salary for example if £50k. Season ticket is £2500.

Unsure on how much of a saving it will offer me.

Thank you for your assistance.

A season ticket loan, is just an advance that is deducted from your salary. It allows you to buy an annual season ticket without having to stump the cash up front. It's the cost of borrowing that amount over the year or if you would otherwise buy a season ticket monthly the difference in cost between 12 monthly tickets & an annual ticket.

Your salary has nothing to do with it.

[Eric Mc]

It's a loan so it's not income

Loans to employees can generate a taxable benefit in kind but only if the loan exceeds £10,000 per annum..

[Collectingbrass]

It's not what tax it saves you, it's what it saves you in the train fare. The rules on my local line to London are:

Weekly season ticket: 7 days, pay for just 5 days

Monthly season ticket: a calendar month, pay for just 21 days

Annual season ticket: 52 weeks, pay for just 40 weekly seasons

So it can be advantageous. But if it was me (and it wouldn't be, no one can pay me enough to commute by train) I would be looking at how many weekly tickets I was actually going to use v the cost of the annual ticket. Also, in London I would check what prices the season ticket includes TFL travel at. The last time I did commute by train *shudder* the National Rail + zone 1 travel card was far more expensive than the equivalent National Rail to Terminus + Oyster.

[Countdown]

sc0tt said:

Safe to say the contractor to perm role went sufficiently well.

Can anyone help with the cost of a season ticket loan showing the workings please?

Salary for example if £50k. Season ticket is £2500.

Unsure on how much of a saving it will offer me.

Thank you for your assistance.

I think you might be confusing this with Cyclescheme, CCV and other salary sacrifice schemes. Normally (as others have said) STL's are just a cash advance. It's just an interest free loan.

[sc0tt]

Ah OK so it isn't taken out of your salary prior to tax etc?

Understood.

Thanks gents