Oyster travel card question - again

[Optimus Prime]

5 days/week PAYG to-from client office is going to be quite a bit more expensive than a monthly travel card.

So I bought a travel card. But if I now use it on some weekends for personal travel - what are my tax obligations?

And do I need to save travel records from TFL in this case?

[wim121]

I assume you just pay one flat rate for the month and no extras for each trip?

Therefore, your travelling outside of work hours shouldnt matter. You paid for an unlimited card as an economic option for work, so extra trips arent a concern for HMRC if they dont entail further expense.

You can save the tickets from each work commute if you like, just in case you get audited. One would assume though your home address and client one, with the oyster receipt would suffice, but we all know HMRC are morons.

[mudskipper]

I don't think this advice is correct. Wim121, do you have a link to say that HMRC are OK about personal use on a season ticket?

I believe a seaon ticket has to be declared on the P11D, so the value of personal use should be estimated.

Hopefully someone will have the definitive answer.

[jmo21]

Is this being over cautious?

Are HMRC really going to care about a couple of extra trips for personal reasons?

In reality, how could they ever know or prove it?

I'd be inclined to use a season ticket like this as much as I liked

Edit: link - says a season ticket should count as earnings. Is the true in every case ie when being used for a short term contract as opposed to travelling to temporary place of work?

[mudskipper]

Is this being over cautious?

Well yes, but that wasn't the question!

[malvolio]

You cannot prove a season ticket or an Oyster Card is wholly and exclusively for business use, unless you have a second, personal one. So it has to be a declarable BIK. </hector>

And yes it does matter, if you are investigated, beause not declaring eaned income is not going to impress the inspector...

HTH

[SueEllen]

I presume this is what you want to read - EIM16066 - Vouchers and credit tokens: transport vouchers: travel cards: private use and business use

Travel card provided for business journeys but available for private use

If the travel card is provided for business travel but the employee also uses it for private journeys (e.g. at weekends and/or for ordinary commuting) the provision of the travel card represents a benefit, but the extent to which that benefit is chargeable to tax and Class 1A NICs depends on the particular circumstances of its use.

If the cost of the travel card provided by the employer is matched or exceeded by the individual cost of business travel by the employee, which gives rise to a matching deduction under s362, any additional use for private purposes does not result in any additional cost to the employer. Consequently there is no chargeable benefit for the employee. See Example 2 in EIM16067.

Which links to this - http://www.hmrc.gov.uk/manuals/eimanual/EIM16067.htm

And you also may want to read this - http://www.hmrc.gov.uk/manuals/eimanual/EIM16065.htm and this - http://www.hmrc.gov.uk/manuals/eimanual/EIM16068.htm

Conclusion it isn't a BIK as long as the cost of the business travel equals the cost of the travelcard/ or money on the oyster card.

[Optimus Prime]

You cannot prove a season ticket or an Oyster Card is wholly and exclusively for business use, unless you have a second, personal one. So it has to be a declarable BIK. </hector>

And yes it does matter, if you are investigated, beause not declaring eaned income is not going to impress the inspector...

HTH

So in the most cautious case I can declare a BIK of 2/7 or 1/7 of the cost of the season card? Assuming that on some weekends I use it for personal travel. It would completely suck to not be able to expense anything at all.

[malvolio]

So in the most cautious case I can declare a BIK of 2/7 or 1/7 of the cost of the season card? Assuming that on some weekends I use it for personal travel.

Buy two cards. Expecting YourCo to pay for your personal travel is about as sensible as expecting me to pay for it

It would completely suck to not be able to expense anything at all.

The point is you cannot use company money for personal use without there being an associated BIK. If you haven't figured out that Your Co and You are two entirely differnt "persons" then you're doing something wrong.

[SueEllen]

So in the most cautious case I can declare a BIK of 2/7 or 1/7 of the cost of the season card? Assuming that on some weekends I use it for personal travel. It would completely suck to not be able to expense anything at all.

I suggest you ask your accountant about the links I gave you. (I certainly did when I was in a similar situation.)

However the way you are asking your question indicates you want to take the p*ss.