Company annual travel card loans

Diddums · 8 Jan 2018 at 12:13

Does your company do this? Ours does but depending on who I ask I get different a different answer every time. From what I understand this is effectively a bit of a tax dodge for the company, but how do they pay out? Some say it's a cheque to the train company, some say it's cash in your bank account.

As it's effectively a 0% APR loan, I could put this money to good use.

Is this fraud? Anyone done this? How would the money be paid out? Bank account or cheque?

Cheers

VincentHanna · 8 Jan 2018 at 12:15

https://www.moneysavingexpert.com/travel/train-season-tickets#employer

I'm pretty sure it would be fraud if you didn't use it towards travel.

Diddums · 8 Jan 2018 at 12:21

VincentHanna said:
https://www.moneysavingexpert.com/travel/train-season-tickets#employer

I'm pretty sure it would be fraud if you didn't use it towards travel.

My thoughts were to actually use the money towards a new motorcycle as I'm fed up of lining the pockets of TFL and getting stiffed by them year in year out. Dunno if that would count towards travel however.

VincentHanna · 8 Jan 2018 at 12:26

Maybe justified if your company is happy to pay it in to your bank account.

Though normally that would be some sort of cash allowance in lieu of providing a company car.

blairw · 8 Jan 2018 at 12:28

It's tied to your cost for travelcard and you could be asked to produce proof at any point that its been used as such. If your company wanted you to obtain a vehicle you would have a car allowance

krooton · 8 Jan 2018 at 12:40

I get a cheque made out to the train company, which sucks as I can't use the loan process for my oystercard as well as TFL only take card payments

I could be saving an additional few hundred a year if I could get my oyster done as well.

robfosters · 8 Jan 2018 at 12:52

my Memories a bit hazy but when I worked in the FCO the HR department issued us with a stamped form that we could take to the ticket office to buy a yearly ticket. The rail company would then invoice the FCO for the amount, they would pay and divide the amount into 10 monthly interest free payments deducted from my monthly pay.

Tunney · 8 Jan 2018 at 13:11

When I’ve used it in the past, it has either been a cheque made out to the train company or paid to a third-party supplier who purchases the ticket on your behalf.

Rids · 8 Jan 2018 at 13:13

Friend of mine used my old companies travel loan as a 0% loan to pay down his credit card.

If the company had found out he would have been in trouble, but I guess its up to you if you want to take the chance.

Diddums · 8 Jan 2018 at 13:13

Yeah I suspected as much, thanks all. I'll just have to save a bit longer or pay the APR on a loan (rather not ofc).

memyselfandi · 8 Jan 2018 at 13:15

Get a season ticket loan from work every year.

I fill a form sometime around the start of February
Amount comes through in the March pay run
I pay it back monthly over the year at 0% APR

With my company they can ask to see a copy of the ticket/receipt at any time to show that you are using it for that reason.

Adam · 8 Jan 2018 at 13:18

I complete a form with proof of my ticket and within a few days I get the payment with my expenses.

My preference is to pay it back over 10 months rather than 12 so it feels like I'm not paying for a couple of months, typically around Christmas. I get an extra £400 in my pay for those 2 months

Maccy · 8 Jan 2018 at 13:21

Diddums said:
Yeah I suspected as much, thanks all. I'll just have to save a bit longer or pay the APR on a loan (rather not ofc).

0% credit card not an option?

Diddums · 8 Jan 2018 at 13:51

Maccy said:
0% credit card not an option?

Nah, I'm looking at getting a mortgage in the next couple of years and sadly my credit file took one hell of a hammering when I first moved to London so I'm trying to avoid putting anything on credit if possible, and this purchase would be more of a quality of life change than a necessity, it can wait, no problem

dl8860 · 8 Jan 2018 at 14:21

You either use it for it's intended purpose (to buy a yearly travelcard) and provide your company with a receipt as proof and your company pays no tax as per the scheme, or your company can do it informally and not care about your proof, but in that situation your company will have tax liabilities.

Scam · 8 Jan 2018 at 15:08

I just open a new 0% interest credit card every year and use that to spread the cost a bit. Less faff.

Adam · 8 Jan 2018 at 15:17

Scam said:
I just open a new 0% interest credit card every year and use that to spread the cost a bit. Less faff.

How is that "less faff" than filling out a form and it being paid out straight from your pay? :confused:

SilverTongue · 8 Jan 2018 at 15:19

My company offers it and it is considered gross misconduct if used for anything else. Have to provide receipt within 7 days of purchase and can also be asked to show the ticket at any time as well. If you don't have it on you that day you have 7 days to show it or they will assume you have cashed it back in and the remaining balance becomes payable immediately

ubern00b · 8 Jan 2018 at 15:38

Adam said:
How is that "less faff" than filling out a form and it being paid out straight from your pay?

Haha, indeed. If I recall correctly too it comes out of pre-tax earnings so you really end up saving quite a bit.

Adam · 8 Jan 2018 at 15:43

ubern00b said:
Haha, indeed. If I recall correctly too it comes out of pre-tax earnings so you really end up saving quite a bit.

I don't think that's correct. It's just designed to be more convenient and save you from having to stump up the cost at the start of the ticket/taking advantage of an annual ticket.