Stagecoach Yorkshire have introduced a new travel scheme which aims to cut the amount of tax employees pay on their earnings. The new Corporate Travel Plan enables staff to agree to a reduction in pay, equal to the cost of an annual season ticket for bus travel. The employer then provides the ticket, with Stagecoach responsible for the administration. A new travel scheme and cut the amount of tax employees pay on their earnings.
 
It means employees do not pay income tax or National Insurance contributions (NIC) on the “sacrificed” amount of pay used to buy the ticket, which is in the form of a Stagecoach monthly Megarider, automatically renewed every month for the 12-month period of the contract.
 
A basic rate taxpayer entering into an arrangement to sacrifice £500 of salary in exchange for a £500 season ticket would save £155 a year in income tax and NIC savings, and the employer would also save £64 per year in NIC.
 
Alternatively, as part of the Corporate Travel Plan, businesses and organisations can also purchase discounted travel vouchers for a range of Stagecoach Megarider tickets to offer employees, either to buy at a discounted rate or as staff incentives.
 
For the tax exemption to apply, the bus journeys made have to be “qualifiying journeys” such as a journey from home to work, a journey between workplaces, a journey on a working day between the workplace and shops/amenities which are no more than ten miles away, a journey between home and work or between workplaces which is partly carried out on a bus, such as use of a park and ride service. Occasional private use does not invalidate the exemption but more frequent use would.

For further information, please visit the Stagecoach Yorkshire website.

Thanks,
Staff at South Yorkshire Transport