Bus to Work

About the Bus to Work Scheme
As part of the green initiative companies are being encouraged to offer this Scheme. The scheme will help solve a lack of parking facilities, help reduce traffic congestion near the workplace and contribute to the company's green travel plan and environmental policies.

Employers can subsidise certain types of bus travel to and from work allowing the employees to benefit from savings on both Tax and National Insurance. Certain bus service operators will also offer corporate discounts for bus season tickets. When operated as a salary sacrifice scheme this also allows the employee to spread the cost of the Bus Season Ticket.

Benefits

• Employees can save up to 42% on the price of an annual bus pass and spread the cost.
• Travelling by bus can be significantly cheaper than commuting by car.
• The company saves the Employer National Insurance Contribution on the cost of the bus pass.

How the Bus to Work Scheme Operates

• The company purchases an Annual Bus Pass
• The cost is recovered from the employee via a deducation from their gross pay (Salary Sacrifice) over 6 or 12 months
• This provides the employee with a Tax efficient method for paying for their bus fares

Illustration of Employee Savings