NIM02335 - Class 1 NICs : Earnings of employees and office holders : Season tickets

If an employer :

• buys a season ticket for an employee’s normal home to office journey, include the payment in gross pay for Class 1 NICs purposes.
• reimburses an employee the cost of a season ticket, include the payment in gross pay for Class 1 NICs purposes.
• gives the employee money to buy a season ticket, include the payment in gross pay for Class 1 NICs purposes.
• gives the employee a loan to buy a season ticket, no Class 1 NIC liability arises. If, however, the employee does not repay any part of the loan, that part becomes earnings for the purposes of Class 1 NICs at the time it is written-off.
• buys a rail warrant for the use of employees, include the payment in gross pay for Class 1 NICs purposes.
• gives a season ticket to an employee of certain passenger transport undertakings, no liability to either Class 1 or Class 1A NICs will arise. See EIM16070 (SE16070) and EIM16075 (SE16075) for guidance regarding the passenger transport undertakings covered by this exclusion.
• provides leave travel facilities for members of Her Majesty’s Forces, no liability for either Class 1 or Class 1A NICs will arise.