Travel passes or air miles

Travel passes

You may provide a monthly or annual travel pass to your employees. Travel passes can include bus, train, Luas and ferry services. This is generally not a benefit in kind where you actually purchase the travel pass.

The bus, train, Luas or ferry pass must be issued by public or private operators who hold valid licences.

Car parking charges may be included in travel passes. In such cases these parking charges are a benefit in kind and you should apportion the cost so the parking element is included in pay. Your employee is chargeable on the benefit under the Pay As You Earn (PAYE) system to:

For further details on conditions for benefit in kind exemption for travel passes, please see TDM Part 05-01-01f.

Salary sacrifice arrangements

A benefit in kind exemption also applies to travel passes obtained under a Revenue approved salary sacrifice arrangement. It does not apply where you purchase the relevant travel pass and recoup the expense from your employee.

For further details on conditions on salary sacrifice arrangements please see TDM Part 05-01-01k.

Air miles

Your employee may receive air miles because of frequent air travel for work. This is not a benefit in kind. Your employee will not have to pay tax on it.