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NIM02335 | Class 1 NICs: Earnings of employees and office holders: Season tickets

From HM Revenue & Customs · National Insurance Manual

If an employer:

  • buys a season ticket for an employee’s normal home to office journey, include the payment in gross pay for Class 1 NICs purposes.

  • reimburses an employee the cost of a season ticket, include the payment in gross pay for Class 1 NICs purposes.

  • gives the employee money to buy a season ticket, include the payment in gross pay for Class 1 NICs purposes.

  • gives the employee a loan to buy a season ticket, no Class 1 NIC liability arises. If, however, the employee does not repay any part of the loan, that part becomes earnings for the purposes of Class 1 NICs at the time it is written-off.

  • buys a rail warrant for the use of employees, include the payment in gross pay for Class 1 NICs purposes.

  • gives a season ticket to an employee of certain passenger transport undertakings, no liability to either Class 1 or Class 1A NICs will arise. See EIM16070 and EIM16075 for guidance regarding the passenger transport undertakings covered by this exclusion.

  • provides leave travel facilities for members of Her Majesty’s Forces, no liability for either Class 1 or Class 1A NICs will arise.