Originally posted by d000hg
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Reply to: Oyster travel card question - again
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Previously on "Oyster travel card question - again"
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Originally posted by oversteer View PostI do PAYG and just deduct any personal trips. I hope that will be OK !
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Originally posted by Optimus Prime View PostWhy is that crazy? The cheapest choice should be the obvious choice. Did you see the quote and links by SueEllen? Looks like it is crystal clear that it is fine to use it this way.
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I do PAYG and just deduct any personal trips. I hope that will be OK !
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Originally posted by k2p2 View PostWHS. If you for example expense a journey for a business meeting and meet up with a friend whilst you're there, you're supposed to apportion the cost of personal use as a BIK. Not sure whether anyone would actually do this.
Not if you have a travel card and it isn't costing the company extra. See links in SueEllen's post.
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Originally posted by centurian View PostThis may be okay within specific BIK guidelines for Oyster cards, but from a general point of view you cannot assume that because it is "free", there is no BIK.
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WHS. If you for example expense a journey for a business meeting and meet up with a friend whilst you're there, you're supposed to apportion the cost of personal use as a BIK. Not sure whether anyone would actually do this.
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It does seem crazy that you chose the cheapest option and then the fact that coincidentally you can use it personally FOR FREE means there is a taxable cost.
Try to look at it as if it is not your company. If you work for a large consultancy and they provide you with a company car for business use - it's quite common nowadays for company cars to be leased with all costs packaged in. The company say you can use the car for personal use, as long as you pay for the fuel - and the mileage doesn't cause them to go over the limit specified in the lease.
It hasn't cost the company a penny more, but you will still incur a significant BIK.
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Originally posted by d000hg View PostIt does seem crazy that you chose the cheapest option and then the fact that coincidentally you can use it personally FOR FREE means there is a taxable cost.
IF that is the case and they did investigate you, I assume HMRC would have the power to get your travel records though.
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It does seem crazy that you chose the cheapest option and then the fact that coincidentally you can use it personally FOR FREE means there is a taxable cost.
IF that is the case and they did investigate you, I assume HMRC would have the power to get your travel records though.
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Originally posted by SueEllen View PostHowever the way you are asking your question indicates you want to take the p*ss.
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Originally posted by malvolio View PostThe 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.
Like I said, for the company it is the cheaper option. The benefit to me is incidental (though welcome). SueEllens links makes me believe there is no BIK to be declared here.Last edited by Optimus Prime; 17 September 2011, 14:52.
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Originally posted by SueEllen View PostConclusion 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.
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Originally posted by k2p2 View PostI 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.
Originally posted by wim121 View PostI 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.
So lets say I hypothetically buy a unlimited ticket for business use at £60. If I use it for personal use outside of those hours then the cost of the ticket still remains the same at £60, as Ive entailed no further expense. Since each trip isnt audited, then there is no problem.
Example 2 clarifys it quite well, if the multi ticket cost is cheaper than indvidual fares, it is of benefit to the employer/employee.
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Originally posted by Optimus Prime View PostSo 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.
However the way you are asking your question indicates you want to take the p*ss.
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