Employment income: travelling and subsistence payments: assisted travel schemes
Sections 62, 87 and 242 ITEPA 2003 Some employees of certain government establishments receive assistance with their travelling expenses from home to work.
If an employee is reimbursed home to work travelling expenses, or paid a mileage allowance in respect of home to work travel, the payments are earnings within Section 62 ITEPA 2003 and subject to PAYE (see generally EIM00520 onwards).
If employees are provided with free or subsidised travel tickets, including season tickets or vouchers, the cost to their employer of providing them is treated as earnings by Section 87 (see EIM16060 and EIM16140).
### Works buses
For 1999/2000 onwards, Section 242 ITEPA 2003 (previously, Section 197AA ICTA 1988) exempts from tax the benefit of a works bus service, provided that certain conditions are met. See EIM21850.