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Railway to Welwyn

24 April 2012
Issue: 4350 / Categories: Forum & Feedback , Employees , Income Tax
To save on the costs of rail fares incurred for business purposes, a company purchases rail cards for its employees. These railcards allow the empoloyees to also purchase discounted tickets for the private purposes

My client is a reasonably sized company which is based in central London but which has ‘satellite’ offices on the outskirts and in the Home Counties.

Most of the offices are located near railway stations. Employees have to attend meetings at the various offices and virtually all inter-office business travelling is done by rail.

With increasing costs of rail travel the company has recently started to pay for network railcards for its employees.

The railcard costs £28 for a year and gives a one-third discount on ticket prices above a minimum price and after 10am on weekdays (as well as anytime at the weekends).

Most meetings are scheduled for lunchtime so the company envisages that it will be able to make a substantial saving in its travel costs over a year far in excess of the initial costs of the railcards.

This sounds reasonable and...

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