The Mayor of London, Boris Johnson, has proposed that season tickets for commuters be considered as a salary sacrifice to give tax relief to those who have to travel to work. He has suggested that they be treated the same as the current Child Care Voucher or Cycle to Work Scheme. The employer would buy the season ticket and deduct the cost from the employee’s pay before tax is deducted. Therefore the employee would have the benefit of the ticket but pay tax on a lesser amount.
At the moment this is only a proposal and has been forwarded to the Chancellor for consultation.