Season Ticket Loans

speegs Registered Posts: 854 Epic contributor 🐘

My bosses are offering us employees interest free season ticket loans for our travel expenses when we move to our new offices in June 09. What I want to know is will I be liable to an income tax charge as my loan will be more than £5000? I seem to remember something from my college days about having to pay tax on the element of underpaid interest when compared to the official interest (set by HMRC currently 6.1% I think) on loans of more than £5000. But employers seem to think that season ticket loans are exempt from income tax. The HMRC website is somewhat unclear on this matter. What do you all think?




  • deanshepherd
    deanshepherd Registered Posts: 1,809 Beyond epic contributor 🧙‍♂️
    There is no exemption for season ticket loans.

    The £5,000 limit is all or nothing so if your loan is £5,001 then you will be assessable on the entire loan, not just the amount over £5,000.

    Incidentally, how far away from work will you be living? £5,000 is a lot for a train ticket!

    Further guidance here.
  • speegs
    speegs Registered Posts: 854 Epic contributor 🐘
    Well for me the travel fare will be just £1472 and I will be able to save up most of that by the time we move office, but many other staff live a lot further and they require larger loans, some of which will be more than £5000.

    I am glad I was correct though. I thought I was going mad.

    Thanks for the help.

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