Expenses and benefits: public transport
What's exempt
You do not have to report anything to HM Revenue and Customs (HMRC) if you’re contributing to subsidised or free public bus transport. You do not have to pay any tax or National Insurance on these costs.
An example would be when you help finance a bus route that gives your employees free or reduced-rate transport between their homes and work or between workplaces.
Salary sacrifice arrangements
You do have to report your employees’ public transport costs if they are a part of a salary sacrifice arrangement.