Nottingham City Council launches tax-free bus travel

Nottingham City Council is to launch tax-free bus travel through salary sacrifice for its 12,800 employees.

Through the Greentravel2work scheme, provided by Motivcom, employees can pay for an annual bus pass on a monthly basis through salary sacrifice. This payment is exempt from income tax and will offer savings of up to 41% saving for employees and up to 12.8% on national insurance for employers.

When setting up such a scheme, Motivcom will arrange and implement it for employers, which includes holding negotiations with the local bus companies and HM Revenue & Customs.

David Lebond, executive director for Motivcom, responsible for the P&MM employee benefits division, said: "It will be a highly attractive benefit to both staff and employers who will find that it not only reduces their NI costs but helps with recruitment and retention. By supporting and encouraging more employees to change to public transport, the employer will also be able to demonstrate the organisation's commitment to corporate social responsibility."

Two other organisation are set to launch the scheme in the next month.