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  • FIRST POST
    • crism
    • By crism 10th Aug 18, 12:46 AM
    • 59Posts
    • 7Thanks
    crism
    Season ticket loan
    • #1
    • 10th Aug 18, 12:46 AM
    Season ticket loan 10th Aug 18 at 12:46 AM
    Hi all you lovely people!

    I have a chance of getting an interest free loan from my employer to cover my (eye watering) annual cost of train commute, effectively saving a bit of those hard earned money.
    I will be repaying in 12 equal installments over next 12 months.

    Now, I read somewhere online that deductions from my salary to repay the loan are made BEFORE any tax and NI is deducted.
    Can anyone confirm if this is true?
    Because if it is then it may be rather a lifesaver for me as may reduce the tax that I pay and therefore directly translate into a saving off a cost of my annual ticket price.

    Thanks!!

Page 1
    • _shel
    • By _shel 10th Aug 18, 5:10 AM
    • 1,302 Posts
    • 2,217 Thanks
    _shel
    • #2
    • 10th Aug 18, 5:10 AM
    • #2
    • 10th Aug 18, 5:10 AM
    If that's what the policy says that's what they'll do. My hubby has a similar scheme and yes it's taken out before tax.
    • Craig1981
    • By Craig1981 10th Aug 18, 6:03 AM
    • 171 Posts
    • 87 Thanks
    Craig1981
    • #3
    • 10th Aug 18, 6:03 AM
    • #3
    • 10th Aug 18, 6:03 AM
    this will vary with every company
    is there a "travel" or public transport scheme at work regarding this, or is it just a loan?
    when you read online, is that local policies under the intranet, or over the internet and other companies?

    You may be tax exempt form this, that is if employer decides to fill in the paperwork for this, however you will still need to do the NI contributions
    • Sncjw
    • By Sncjw 10th Aug 18, 7:27 AM
    • 1,894 Posts
    • 1,119 Thanks
    Sncjw
    • #4
    • 10th Aug 18, 7:27 AM
    • #4
    • 10th Aug 18, 7:27 AM
    Is it salary sacrifice scheme? Then yes they would likely take it before tax is paid. Why not talk to them.
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