Reply to: Oyster card trips

[TheCyclingProgrammer]

Thanks TCP. Applied and awaiting response.

Back to the original discussion.. All the replies are around PAYG Oyster usage.

What about monthly travel card top ups?

If that make sense? I.e. zones 1-3 cost me £140 or something..

Rather than doing PAYG top-ups..

You can apply the same rules to monthly travel cards on your Oyster as normal travel cards, so read the HMRC guidance on this.

IIRC, travel cards can potentially be a BIK however if it's more cost effective to buy a travel card than pay for individual journeys, then there is no BIK charge as far as I'm aware, even though the employee can still use the travel card for personal journeys. If the travel card exceeds the cost of individual journeys then I think there is a BIK charge on the excess.

But don't take my word for it, read the HMRC manual as it's all outlined there.

[zudecke]

If you have a dispensation for business travel expenses, then it won't need to appear on the P11D.

You can apply for a dispensation online. It's easy. I got mine approved in a few weeks.

Thanks TCP. Applied and awaiting response.

Back to the original discussion.. All the replies are around PAYG Oyster usage.

What about monthly travel card top ups?

If that make sense? I.e. zones 1-3 cost me £140 or something..

Rather than doing PAYG top-ups..

[TheCyclingProgrammer]

How would one if they have special dispensation from reporting travel expenses on P11d?
Under what circumstances?

Cheers,

Z

If you have a dispensation for business travel expenses, then it won't need to appear on the P11D.

You can apply for a dispensation online. It's easy. I got mine approved in a few weeks.

[zudecke]

How would one if they have special dispensation from reporting travel expenses on P11d?
Under what circumstances?

Cheers,

Z

[Contreras]

Don't forget it still needs to be reported on your P11D unless you have a dispensation.

Not sure if that's the case if YourCo pays directly but it might still be. I have a dispensation anyway so paying direct from the business account just means less faff for me.

If paying directly from the company account means not having to report on a P11D, then that's probably a good argument in favour if doing it that way, but check with your accountant as it still might be reportable either way.

Source of payment makes no difference to an expense being P11D reportable (or not). The guidelines are quite clear on this point.

[TheCyclingProgrammer]

Yeah, dedicated business Oyster card, but just topped up from my personal account.

Simply because its easier really and I want to keep expenditure from my biz bank account to a minimum. But hardly matters either way tbh.

Thanks for all the advice guys!

Don't forget it still needs to be reported on your P11D unless you have a dispensation.

Not sure if that's the case if YourCo pays directly but it might still be. I have a dispensation anyway so paying direct from the business account just means less faff for me.

If paying directly from the company account means not having to report on a P11D, then that's probably a good argument in favour if doing it that way, but check with your accountant as it still might be reportable either way.

[zudecke]

If you mean paying the topup and getting reimbursed by YourCo, then I don't see why that would be a problem either but I would still get a separate business Oyster card and keep the travel reports so you can show it was only ever used for business journeys and avoid any suggestion of there being a BIK.

Yeah, dedicated business Oyster card, but just topped up from my personal account.

Simply because its easier really and I want to keep expenditure from my biz bank account to a minimum. But hardly matters either way tbh.

Thanks for all the advice guys!

[TheCyclingProgrammer]

Ah that's good news .

Even so, I think one would be ok doing the same thing, but using personal account. I really don't see an issue..

In any case, thanks for getting back! V useful!

If you mean paying the topup and getting reimbursed by YourCo, then I don't see why that would be a problem either but I would still get a separate business Oyster card and keep the travel reports so you can show it was only ever used for business journeys and avoid any suggestion of there being a BIK.

[zudecke]

I ran the idea of the simplified approach (business only Oyster, paid for from business account) past my accountant and not only did he think it was fine, he told me it's what he does himself.

So thats less hassle going forwards!

Ah that's good news .

Even so, I think one would be ok doing the same thing, but using personal account. I really don't see an issue..

In any case, thanks for getting back! V useful!

[TheCyclingProgrammer]

I ran the idea of the simplified approach (business only Oyster, paid for from business account) past my accountant and not only did he think it was fine, he told me it's what he does himself.

So thats less hassle going forwards!

[TheCyclingProgrammer]

Sorry to harp on, but....

I thought travel could be paid for "by the Director personally" i.e. from personal accounts? If I'm ONLY using THIS particular Oyster card for business travel, why would I need to bother linking it to my biz account?

Sorry, excuse the ignorance - It's all new to me!

Just my feedback on other peoples posts here.

The HMRC manual goes into some more detail if you really want to make sure you're doing things by the book.

EIM16068 - Vouchers and credit tokens: transport vouchers: travel cards: Oyster cards

In short, if the cost of the topups doesn't exceed the cost of the business journeys, then there is no taxable benefit.

It may still need reporting on a p11d though, unless you have a dispensation.

[zudecke]

Hmm, if nobody else bothers claiming individual journeys I might just get a separate business oyster and start having it auto topup from the business account. I'll still keep the journey logs to show it's exclusively business trips but it does seem like far less faff.

Sorry to harp on, but....

I thought travel could be paid for "by the Director personally" i.e. from personal accounts? If I'm ONLY using THIS particular Oyster card for business travel, why would I need to bother linking it to my biz account?

Sorry, excuse the ignorance - It's all new to me!

[The Spartan]

I make the same journey 3 times a week as I drive Monday and Friday, the only deviation I make is when I go to the London Test Gathering again for work but someone said earlier it's hardly anything Hector would get excited about if a mistake was made.

[Scruff]

I only ever go into London for business purposes, so claim all Oyster through business. Leisure is not an option in The Smoke.

[TheCyclingProgrammer]

Hmm, if nobody else bothers claiming individual journeys I might just get a separate business oyster and start having it auto topup from the business account. I'll still keep the journey logs to show it's exclusively business trips but it does seem like far less faff.