Inland Revenue to help reduce environmental impact of travel

Leaflet IR 176, Tax, National Insurance Contributions and Green Travel provides guidance on the tax and National Insurance treatment for both employers and employees on a package of measures aimed at encouraging green commuting. The measures were introduced in April last year (see related story), and were designed to encourage employers to establish travel plans and help employees travel to work without using their own cars.

“It is clear that the tax reliefs the Chancellor introduced in the Finance Act 1999 have struck a chord with many employers who are developing their own Travel Plans,” said Dawn Primarolo, Paymaster General. “Leaflet IR 176 will assist them in this task.”

The green travel measures include tax exemptions for employee benefits such as works buses, subsidies to public bus services, bicycle and cycling safety equipment, and workplace parking for bicycles and motorbikes. Employers are also allowed to avoid paying tax on alternative transport when car sharing arrangements temporarily break down.

Copies of leaflet IR 176 are available, free of charge, from Inland Revenue Enquiry Centres, or Tax Offices, or from the Inland Revenue Information Centre, SW Bush House, Strand, London WC2B 4RD, or by telephoning the Employers Orderline on 0845 764 6646, Fax number 08702 406406. The leaflet is also available on the internet.