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.
Read more detailed information on exemption for works buses.