The process of getting to work is a private expense and not usually the subject of tax exemptions or deductions. However, for various policy reasons the following commuting benefits provided by employers do not give rise to an employment income tax charge on the employee.
Works buses
No liability to income tax or NIC arises on the provision of works buses (seating at least 12) or minibuses with a minimum seating capacity of nine which are used to transport employees (and their children) to and from work1.
The government was concerned that safety might be compromised if additional seats were added to vehicles with a seating capacity of less than nine in order to bring them within the relief. Therefore, any seats beyond those specified in the relevant construction and use requirements of the Road Traffic Act 1988 or corresponding Northern Ireland provision are ignored in determining seating capacity2.
Use of a works bus for a journey of not more than ten miles between the workplace and shops or other amenities that is made on a working
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Web page updated on 17 Mar 2025 16:39