Supporting Guidance: employer compliance: guidance by subject: working rule agreements (WRA): free transport provided
As part of daily travel payments described at COG930590 where an employer provides free transport from
- an employee’s home, or
- a WRA defined centre which is within the initial threshold distance
any fares allowance payment should be included in gross pay
Where employees travel by their own means to pick-up points, which are more than the initial threshold distance away, a tax and NIC free payment may be made, using the WRA rates, for that part of the journey to the pick-up point which exceeds the initial threshold distance.
Where an employee receives a lift to site in a fellow employee’s vehicle no travel costs are incurred by the employee provided with a lift and consequently no tax and NIC free payment of travelling allowance is due. Any payment made by the employer should be included in gross pay.
If an employer provides the employee with either the benefit of a van or a car this is outside the terms of a WRA, and the strict statutory procedures apply.
For season tickets see COG930620.