Pre-tax methods of paying for travel to work

[308mate]

I need ideas or experiences of this from anyone who has done it before.

I understand the NHS may have a system similar but in short, I want my annual travel costs to and from work via public transport, to be paid pre-tax from my wages.

Ideas?

[paddyhasneeds]

I'm curious why?

Maybe it's a normal thing to do in certain sectors just not something I'm familiar with.

[308mate]

paddyhasneeds said:

I'm curious why?

Maybe it's a normal thing to do in certain sectors just not something I'm familiar with.

Because my potential annual commute is via public transport and is considerably cheaper if I buy a 12mth ticket, but it costs circa £6000.

[purplepolarbear]

Not sure if this is legal but here's a suggestion:

Get your contact changed so you work from home and earn £6K a year less.
Then you are asked to work at a temporary workplace for a short time. Claim the cost of travel through expenses.

[Eric Mc]

I'm pretty sure HMRC would dispute the "temporary" nature of the workplace.

The basic rule is that the cost of the normal commute is not claimable against tax - or cannot be paid by an employer without the employee paying tax on any amounts paid by the employer on behalf of the employee.

[308mate]

Eric Mc said:

I'm pretty sure HMRC would dispute the "temporary" nature of the workplace.

The basic rule is that the cost of the normal commute is not claimable against tax - or cannot be paid by an employer without the employee paying tax on any amounts paid by the employer on behalf of the employee.

But that wouldnt be so bad would it?

Theoretically then, how would I pay the tax on a 6k "loan" to pay for my travel costs up front?

[308mate]

inkiboo said:

308mate said:

Eric Mc said:

I'm pretty sure HMRC would dispute the "temporary" nature of the workplace.

The basic rule is that the cost of the normal commute is not claimable against tax - or cannot be paid by an employer without the employee paying tax on any amounts paid by the employer on behalf of the employee.

But that wouldnt be so bad would it?

Theoretically then, how would I pay the tax on a 6k "loan" to pay for my travel costs up front?

Because the company can't just lose 6k (and if it can, I wouldn't want to work for that company).

No, obviously. Im saying would it be so bad if I had the loan but paid tax on it?

[tubbystu]

As it is part of your income how can it be paid tax free ? Even if the employer purchased your ticket it would still be taxed as benefit in kind.

Most govt based bodies will offer an interest free loan to cover the season ticket cost, paid back in 12 monthly installments.

£6k net is circa £8 or 9k before deductions.

[sidicks]

tubbystu said:

As it is part of your income how can it be paid tax free ? Even if the employer purchased your ticket it would still be taxed as benefit in kind.

Most govt based bodies will offer an interest free loan to cover the season ticket cost, paid back in 12 monthly installments.

£6k net is circa £8 or 9k before deductions.

I think the maximum loan is £5k or else there is a tax issue.

Sidicks

[Caruso]

inkiboo said:

You can get a bicycle pre-tax (google ride 2 work); anything else will need a creative accounting.

Not anymore. One of my team has just been asked for an extra £170 for tax at the end of his scheme as they've changed the rules.

[BlueEyedBoy]

So you just want a Season Ticket loan. If they give you this, surely it will have to be after tax, or else you are getting 6K tax free. If this lark existed everyone would be doing it!