Putting travel cards through the company?

[TheMonkey]

I run a Limited - whats the deal on putting Travelcards (not Oyster!) through the company account? Is it dodgy?

I've not had to do this yet as a friend of mine worked for the tube and gave me his family member free card . But he's quit now

I'm not paying for them through my own pocket - there's enough bloody taken through corp tax, NI and PAYE tax.

[malvolio]

Thud, thud, thud... Can't anybody think for themselves any more?

Is it purely a business related expense? Probably no - because you can use it at any time for any tube/bus/DLR journey for any purpose.

Have you tripped over the 24-month rule yet? Probably yes, if you are London resident and have been using the Tube to get to work for any length of time, and given Hector's ideas on the subject.

So probably not then.

Mind you, what is dodgy is using a friend's family card illegally. Interesting morality at work somewhere.

[TheMonkey]

Yes purely business. I drive everywhere else privately, even in the city. I've not tripped the 24-month rule as I work all over the place on "non-contract" stuff between contracts (which are usually 3-9 months only - I don't like sitting still for too long) and haven't worked in the city for a number of months now.

I could probably get away with it looking at it.

My company is operated as a standard IT services company (bespoke software and shrinkwrapped products), rather than a contracting outfit. I do the contract stuff to fill in the dead bits while building business.

The family card was perfectly legal - it doesn't state family despite being a family card thingy - says "individual" as it can cover girlfriends/boyfriends etc as well apparently.

[Judge Fred]

Doh. No brainer.

[TheMonkey]

It's Sunday, it's late and I'm pissed on cider again! Lay off!

[Mordac]

Is it purely a business related expense? Probably no - because you can use it at any time for any tube/bus/DLR journey for any purpose.

I buy travelcards if I'm doing 3 or more days a week in London, as it's £12.40 a day or £41 a week - so it's a question of economics. I don't use the card for non-business travel (does Hector seriously think I'd commute up to London for fun?) but I suppose if you did, and declared it, they'd be OK with it. Wouldn't they?

[malvolio]

What people tend to forget is that you can charge anything to the company you want to, as long as there is a vaguely business-related reason for doing so. The question is whether or not it becomes a BIK as a result: if you only use it for work, it won't and no problem, if it does, treat it as earned income, declare it on your P11d and ay the tax on it. There are no other "rules"

[ASB]

What people tend to forget is that you can charge anything to the company you want to, as long as there is a vaguely business-related reason for doing so. The question is whether or not it becomes a BIK as a result: if you only use it for work, it won't and no problem, if it does, treat it as earned income, declare it on your P11d and ay the tax on it. There are no other "rules"

It's also worth checking if Class 1 or 1A NI becomes due on the BIK. It can still be cheaper than paying it personally though.