Generally, where all qualifying conditions are met, the provision of a travel pass by an employer will not give rise to a charge to tax. This exemption does not extend to the parking element of travel passes when purchased as a combined ticket for travel and parking.
Revenue is prepared to accept that an approved salary sacrifice arrangement will be in place where all of the following conditions are satisfied:
There must be a bona fide and enforceable alteration to the terms and conditions of employment (exercising a choice of benefit instead of salary) with the consent of the employer.
- The alteration must not be retrospective and must be evidenced in writing, and
- There must be no entitlement to exchange the benefit for cash.
Where salary sacrifice arrangements are used, they must be completed over a maximum period of 12 months from the date of provision of the travel pass (i.e. the full cost must be recovered within this period).
If employee leaves: Page 7 attached.
Record keeping: Page 8 attached.