Nationwide Employment Lawyers
Legal enquiries and clients : 0333 242 3851
Get in Touch
Service Rating: Damian McCarthy 5 starts - Service Rate
  • About Us
    • Contact
    • Howell John
    • Damian McCarthy
    • Simon Armstrong
    • Case Studies
    • Employment Law News
  • Employee Services
    • Questionnaire
    • Contact
    • Locations
    • Dismissal
    • Whistleblowing Law
    • Discrimination
      • Sex discrimination
        • Maternity rights in employment
        • Pregnancy or maternity discrimination
        • Returning to work and flexible working
        • Health and safety for pregnant women in the workplace
        • Sexual Harassment
      • Disability discrimination
      • Race discrimination
    • Equal Pay
    • Bullying and Harassment
    • Family Friendly Rights
    • Disciplinary and grievance hearings
    • Contracts
    • Transfer of Undertakings
    • Agency workers and part time workers
    • Privacy at work
    • Constructive dismissal
    • Resignation letter templates
      • Constructive dismissal letter template
      • Standard notice resignation letter template:
      • Short or long notice request template
    • Health and Safety at Work
  • Locations
    • London – Berkeley Square
    • London – Canary Wharf
    • London – Croydon
    • London – Hammersmith
    • London – High Holborn
    • London – King’s Cross
    • London – Liverpool Street
    • London – London Bridge
    • London – Richmond
  • Case Studies
    • A v PWC
    • P v S (confidential)
    • Moira Stuart quits, reigniting BBC ageism row
    • Married HBOS bank manager propositioned by colleagues
  • News
  • FAQ
  • Contact



Free Employee Bus Pass a Taxable Benefit, Tribunal Rules

Fringe benefits provided to employees are usually taxable, but there are exceptions, and one of them came under detailed scrutiny in a case involving a free bus pass issued to a local authority worker.

 

The council had in the past operated a scheme whereby its employees were given the opportunity to sacrifice part of their salaries in return for a free pass on local bus services. That arrangement was accepted by HM Revenue and Customs (HMRC) but was subsequently abandoned following a change in the law.

 

With a view to establishing the correct legal position, the council subsequently issued a bus pass, worth £427, to one of its employees. HMRC levied Income Tax on the worker and required the council to make National Insurance contributions. The council challenged the decision before the First-tier Tribunal (FTT).

 

It was submitted that, by paying for the bus pass, the council was providing financial support to a local, privatised, bus company and that the tax exemption in respect of public transport road services, contained within Section 243 of the Income Tax (Earnings and Pensions) Act 2003, therefore applied.

 

Rejecting the appeal, however, the FTT found that provision of the bus pass was a taxable benefit in kind. Had the council’s arguments been correct, all bus passes provided by an employer to an employee would be tax free so long as they were only valid on local services. Had Parliament intended such a result, it would have said so in terms.




Social Share
  • google-share

Our specialist areas of law

  • Employment Tribunals
    • Employment Tribunals London
  • Dismissal
    • Unfair Dismissal
    • Constructive Dismissal & Resignation Advice
    • Compromise agreements
    • Executive Dismissal
    • Whistleblowing Law
    • Redundancy claims
    • Age Discrimination & Redundancy – Protection for all Ages In Redundancy
    • Collective redundancy
  • Whistleblowing
    • Whistleblowing Law
  • Discrimination (overview)
    • Discrimination at work – overview
  • –– Sex Discrimination
    • Maternity rights in employment
    • Pregnancy or maternity discrimination
    • Returning to work and flexible working
    • Health and safety issues for pregnant women in the workplace
  • –– Disability discrimination
    • Disability discrimination
  • –– Race discrimination
    • Race discrimination
  • –– Age discrimination
    • Age discrimination in recruitment and selection
    • Age discrimination – your rights at retirement
    • Age discrimination and redundancy – protection for all ages in redundancy
    • Age discrimination and pensions
    • Age discrimination and benefits
  • –– Sexual-orientation discrimination
    • Sexual-orientation discrimination in goods and services
  • –– Religious discrimination
    • Religious discrimination
  • –– Gender reassignment discrimination
    • Gender reassignment discrimination
  • Equal pay
    • Equal pay
  • Bullying and Harassment
    • Bullying and harrasment at work
  • Family-friendly rights
    • Family leave
    • Maternity rights in employment
    • Pregnancy and maternity discrimination
    • Return to work and flexible working
    • Health and safety for pregnant women in the workplace
    • Paternity rights
    • Maternity
    • Part-time workers
  • Disciplinary and Grievance Hearings
    • Disciplinary Hearings & Procedures
    • Grievance procedures
  • Contracts
    • Bonus disputes and discrimination
    • Bonus disputes
    • Bonus discrimination & The Risks Associated With It
    • Contract disputes and permanent health insurance
    • Employment contract disputes – restrictive covenants
  • Transfer of Undertakings
    • Transfer of undertakings (TUPE)
  • Agency Workers and Part Time Workers
    • Agency workers
    • Part-time workers
  • Privacy at Work
    • Privacy at work
  • Letter Templates
    • Constructive dismissal letter template
    • Standard notice resignation letter template:
    • Short or long notice request template

Join our Newsletter!

Twitter

Damian McCarthy
  • I worked with Martin a few years ago on a lengthy case. Always seemed a man of integrity. https://t.co/CwTnxNq5QZ 08:49:06 PM May 19, 2023 from Twitter for iPhone ReplyRetweetFavorite
  • @NationCymru When I was a kid 1970’s - ‘80s always called “chip alley” … I think sometimes Caroline St. 08:47:37 PM May 19, 2023 from Twitter for iPhone in reply to NationCymru ReplyRetweetFavorite
  • @PhilipProudfoot What are you talking about ? King Charles unplugged my sink this morning and Camilla did my ironin… https://t.co/GawUMSYVH1 01:51:10 PM May 08, 2023 from Twitter for iPhone in reply to PhilipProudfoot ReplyRetweetFavorite
@dam_mccarthy

Contact Us

  • We will be able to help you quickly if you leave us a contact phone number. We keep this strictly confidential.
  • This field is for validation purposes and should be left unchanged.
Copyright Notice | Disclaimer | Website Terms & Conditions | Privacy Statement
ACAS | EHRC
Nationwide Employment Lawyers Ltd is Authorised and Regulated by the Financial Conduct Authority. For peace of mind you can find information about our authorisation by checking the Registration number 838365 on the Financial Services Register : register.fca.org.uk. Please note all telephone calls are recorded, as required by the regulator. Nationwide Employment Lawyers Ltd is not a firm of solicitors. Instead we offer an exceptional level of service using specialist employment law Solicitors, Barristers and a Senior Advocate.
Please contact us using either the questionnaire, quick contact form (above) or telephoning us on 0333 242 3851.