Expenses and benefits: works bus services

As an employer, you don’t have to report the cost of providing a bus to bring your employees to work. You don’t pay tax or National Insurance on these costs.

The bus must be for journeys:

  • between home and work
  • from one workplace to another
  • from work to shops or other local amenities (no more than 10 miles away)

The service must be:

  • available to all your employees, whether or not they use it
  • used almost entirely by employees and their children
  • a bus that can carry 12 or more passengers, or a minibus that can carry 9 or more passengers

Salary sacrifice arrangements

If you provide the bus service as part of a salary sacrifice arrangement it won’t be exempt. You’ll need to report on form P11D whichever amount is higher:

  • the salary given up
  • how much you paid for the bus service

These rules don’t apply to arrangements made before 6 April 2017 - check when the rules will change.

Technical guidance

Read more detailed information on exemption for works buses.

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