Tax Free Travel

1
Tax Free Travel Through a Salary Sacrifice Scheme
Presented by Helen Martin Marketing
Manager Stagecoach South
2
BACKGROUND
A system and procedure to help employers offer a
new Employee Benefit Scheme to their employees
around the UK. i.e. Bus travel as a tax and NI
free benefit

3
SALARY SACRIFICE
Employee agrees to give up part of their pay for
a benefit from their employee in this case bus
travel. The employee enters into a variation to
contract with their employer for a minimum 12
months.
4
THE SCHEME
Introduced in 1999 as part of the Finance Act
under the Governments Green Travel Initiative the
scheme offers employees the opportunity to elect
bus travel as a tax and NI free benefit.

• Supports the Governments Green Travel Plan
• Encourages employees to use local bus services
  for travel to and from work
• Suitable for all employers

5
EMPLOYER BENEFITS

• Self funding scheme cost could be covered by
  employer NI savings
• Simple and quick process on-line application
  and fulfilment process is already in place with
  Stagecoach
• Limited employer administration Single monthly
  invoice and deductions taken from salary
• Easy to Implement
• Assists in improving staff retention
• Supports green travel plans
• Helps support businesses where there is a
  shortage of car parking spaces

6
EMPLOYEE BENEFITS

• Saving a minimum of 31 on the cost of an annual
  Stagecoach megarider or megarider gold ticket
• Unlimited travel 7 days a week not just for
  travel to work
• 12 month scheme not subject to price increase
  during the term
• Convenient payment direct from salary monthly
  easy to budget
• Can apply at any time of the year scheme is
  open continually
• Easy to apply for e.g. Stagecoach offers
  on-line portal and telephone support line

7
THE PRODUCT
Stagecoach offer is an annual megarider or
megarider gold ticket priced as the publicly
available equivalent ticket.

• Tickets are issued calendar monthly reducing
  the exposure and risk
• The ticket will offer unrestricted use - the
  same terms and conditions as the commercially
  available ticket
• Unlike the traditional megarider, the tickets
  are not transferable and can only be used by the
  employee

8
IMPLEMENTING THE SCHEME

• Her Majestys Revenue and Customs approval is
  required

• Tax advice employ a consultancy to help
  achieve the criteria required by HMRC

• Marketing the scheme is key to its success

9
THE PROCESS

• Through the employer website - follow the links
  through to the Stagecoach portal or call the
  Stagecoach call centre

• Complete the following information Name,
  address, telephone number, date of birth,
  employee number and e-mail address (if available)

• This information will then be sent to the
  employer to qualify the request. Once
  qualification has been made, tickets will be
  issued on a monthly basis straight to the
  employees chosen address

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SAVING OPPORTUNITES
Example based on annual bus pass costing 500.00
BEFORE SALARY SARIFICE
AFTER SALARY SARIFICE
Gross Pay 20,000.00 Minus Tax Allowance
6,030.00 Taxable amount 13,970.00 Minus 31
(tax and NI) 4330.70 9,639.30 Plus Tax
Allowance 6,030.00 Net Pay 15,669.50 Minus
500 Bus Pass 15,169.30
Gross Pay 19,500.00 Minus Tax Allowance
6,030.00 Taxable amount 13,470.00 Minus 31
(tax and NI) 4175.70 9,294.30 Plus Tax
Allowance 6,030.00 Net Pay 15,324.30
Total saving 155.00 12.92 per month
11
Thank you for your time
12
QUESTIONS AND ANSWERS
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Should there be any specific questions that have
not be answered please contact Nikki Jones The
Bus Station, Chichester, West Sussex, PO19
8DG Tel [phone] E-mail nikki.jones_at_stagecoa
chbus.com
14
RECOMMENDED CONSULTANTS
Hewitt Associates 6 More London Place London SE1
2DA e enquiries_at_hewittassociates.com w
www.hewittassociates.com t 020 7939 4000 f 020
7939 4411
Authoritas - RSM Bentley Jennison 26 Pall
Mall Manchester M2 1JR e duncan.groves_at_rsmbentley
jennison.com w www.rsmbentleyjennison.com t
0870 855 4952
P MM Limited Rockingham Drive Linford
Wood Milton Keynes MK14 6LY e
steven.guthrie_at_p-mm.co.uk w www.p-mm.co.uk t
01908 608000 f 01908 665597
15
FREQUENTLY ASKED QUESTIONS

• Who is eligible to join?
• In order to receive the benefits employees must
  meet the following criteria
• Be a UK Tax payer, who can benefit from the
  scheme
• Be earning above the national minimum wage
• Be in a fixed term (minimum of 12 months) or
  permanent contract of employment on a full or
  part time basis paid directly by your employer
  with an intended 12 month period of employment
  left to run. Employees due to retire within 12
  months of joining the scheme are not eligible

What if I go on unpaid/maternity/long term sick
leave? If you are entering a period of leave as
described above your HR department may allow you
to suspend the salary sacrifice until you return
How do I elect a ticket? Ticket elections can
be completed on-line through the Stagecoach
website or by telephoning the Stagecoach helpline
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FREQUENTLY ASKED QUESTIONS
How long will it take to elect a ticket? An
election needs only to be completed once a year.
This will take no more than a few minutes to
complete on-line or by telephoning the helpline
How do I find out what bus service Stagecoach
offer in my area? Bus information can be
obtained through www.stagecoachbus.com.
Alternatively you can contact Traveline at
www.traveline.org or by calling 0871 200 22 33
Stagecoach does not offer services in my area,
what should I do? Other bus operators may be
participating in the scheme, contact your HR
department for more information
What will I be issued with? Stagecoach will issue
you with a monthly megarider bus pass. This will
automatically be renewed each month for the 12
month period of election
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FREQUENTLY ASKED QUESTIONS
What information will I need to provide? You will
be asked to provide your name, address, date of
birth, telephone number, employee number and
e-mail address (if available).
Is my information secure? Yes Stagecoach
adopt a strict control over security of all its
websites. Our sites are regularly checked by
independent security experts
Will I have to provide a photograph? No
however, Stagecoach do require that you are able
to provide photographic proof of identity on
request of any Stagecoach employee. A valid
proof of identity would include an employee
cards, driving licence or passport
What happens if I cannot provide photographic ID?
You must carry photographic identity with you.
In the event that an employee of Stagecoach
suspects that the ticket is being used
fraudulently, the ticket will be confiscated and
the traveller required to pay the appropriate
fare for the journey. Any such incident will be
reported to the employer
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FREQUENTLY ASKED QUESTIONS
How will I receive my ticket? Stagecoach will
post your ticket to the address provided when you
elect.
My ticket has not been delivered, what should I
do? Undelivered ticket should be reported to the
Stagecoach helpline on 0871 8340010.
What do I do if I lose my ticket? Lost ticket
should be reported to the Stagecoach helpline on
0871 8340010. Stagecoach reserve the right to
choose NOT to issue replacement tickets dependant
on specific circumstances
I have elected and my details have changed, what
should I do? Log in to My Tickets on Stagecoach
website and here you can update your details.
The new details will be used on all future
tickets. If you initially registered by
telephone then contact the helpline on 0871
8340010