Travel passes or air miles
Travel passes
An employer may provide a monthly or annual travel pass to their employees. Travel passes can include bus, train, Luas and ferry services. This is generally not a benefit in kind where the employer actually purchases the travel pass.
The bus, train, Luas or ferry pass must be issued by public or private operators who hold valid licences.
Where travel passes include car parking charges, these parking charges are a benefit in kind. The employer should apportion the cost so the parking element is included in pay. The 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.
For further details on conditions on salary sacrifice arrangements please see TDM Part 05-01-01k.
Air miles
An employee may receive air miles because of frequent air travel for work. This is not a benefit in kind. The employee will not have to pay tax on it.