Splitting commute ticket Hitchin London Kings X

[altre]

I will be commuting from Hitchin to London Kings Cross starting next year. I'm in the lucky situation that my employer will pay 2,600 pounds per year toward commuting costs. Now I need to invest this money before the end of the year and then I can pay the same amount of money next year. I will need to be commuting about 3 times a week on three to four weeks every month.
I was wondering what the best way to go about this? Any help would be greatly appreciated.

 

[Mcr Warrior]

@altre. Welcome to the forum. An 8 days travel in any 28 days flexi season ticket (Hitchin to London Terminals) would currently cost a total of £227.80, or £28.48 per day trip, if all 8 days are used. This compares with the undiscounted Anytime Day Return fare of £32.20.

Are you eligible for a railcard, such as 26-30? That would then reduce the Anytime Day Return fare down to £21.40.

 

[altre]

Thanks for the hint!
My issue is that I need to spend my full budget of 2600 by the end of the year and then will have the same budget next year, because I just started the position. This is why I was looking for some way to split costs part way on some kind of a yearly ticket.

 

[realemil]

You can buy a Flexiticket for travel up to 28-days prior to the start date, meaning you could purchase it for travel in January, and buy it today.

You can also wait until the end of the month and get one as far out as possible so you can cover some of February too, if needed.

Edit: sorry just saw the amount you have the spend, and the amount a Flexiticket costs!

You should be able to obtain a season ticket, starting in January, for a custom time period, and just buy that instead. It’ll cover every day, and probably the best use of the money if you wish to spend it all.

6 months will cost ~£2850 according to https://www.nationalrail.co.uk/tickets-railcards-and-offers/ticket-types/season-ticket-calculator/

 

[FastItinerary]

You might find some benefit in purchasing a Custom Season ticket for that route if you want to maximise usage of the budget in the short term; a Custom Season with a duration of 5 Months and 2 Weeks for Hitchin to London Kings Cross comes in just under the budget you've listed at £2597.70. Purchasing one on this side of the window would last you until the start of June, at which point you could more to more efficient options like Flexi-seasons or Railcard-discounted tickets (if eligible) in the long run.

Depending on your circumstances, you might also find benefit from getting an annual season ticket between eg. Hitchin and Hatfield this year, and 'topping it up' with returns or flexi-seasons for the remaining portion of the commute over the next year - this comes with the added bonus of unlimited travel on the season ticket segment, alongside a Annual Gold Card which can be used for discounts on other travel. Of course, this only really works for this year in maximising the benefit you get from your entitlement, and you'd want to fall back to something else after that.

Do make extra sure that the entitlement isn't pro-rata in your first year though - these things often can be - and that any purchase you do make aligns with their policies.

 

[MotCO]

Don't forget that there may be tax implications - benefit in kind. If you max out on your allowance, your tax liability would be higher than if you went for one of the cheaper options. (I am not a tax expert, but Google suggests there is a tax liability)

 

[jfollows]

https://www.gov.uk/guidance/ordinary-commuting-and-private-travel-490-chapter-3#ordinary-commuting for example.

3.6​

Where someone other than the employee pays or provides for their ordinary commuting (by reimbursing the costs, by paying directly for the travel or by providing travel facilities) and this arises from or by reason of the employment, the payment or provision is taxable.

Reimbursements must be included as gross pay for PAYE purposes. All such payments and benefits should be reported on form P11D or a Full Payment Submission (FPS) if the employer is registered to payroll benefits. The tax charge arises irrespective of whether the payment or provision is made by the employer or by a third party.

 

[Robin Edwards]

https://www.gov.uk/guidance/ordinary-commuting-and-private-travel-490-chapter-3#ordinary-commuting for example.

Coincidentally, many moons ago I used to travel from Hitchin into London and the way my company covered for travel was by virtue of registering my HQ office as local to me or also by registering me as an Agile or Home Worker as that was what I did, worked from home and travelled to anywhere I needed to, yet my company's head office was in the City. This allowed me to claim for my travel in full including into London without incurring tax benefits. Things may have changed over time but this was certainly the practice for many in my company in the past.

 

[altre]

You're amazing! I didn't even know I could get a custom season ticket. And thanks for pointing out the tax implications. I will have to do some calculations to see what is the best in expectation.

 

[Fawkes Cat]

my employer will pay 2,600 pounds per year toward commuting costs

One other point: you have, of course, checked that this is not a loan that you have to pay back.

A lot of employers do offer staff loans to buy season tickets at no/low interest, and while this is obviously cheaper than taking out a commercial loan, it's not as good value as being given the money without having to repay it!

 

[altre]

Yes, it's not a loan and it also is not pro-rata, as strange as it might seem, but I'm not complaining. Since I wont be needing the ticket to Hitchin straight away in the year, I still have to calculate whether this makes sense given the taxes I will have to pay.

 

[Watershed]

Does it all need to be spent on one ticket, or is it acceptable to your employer to buy lots of tickets in advance?

You can buy single/return tickets many months in advance, in fact some retailers will let you do so until the end of the current timetable period (the middle of May).

Others, such as the GTR website (available under the Thameslink, Great Northern and Southern brands) will let you 'favourite' a fare that's in your basket, and then quickly buy it for any chosen date (within the next 12 weeks) on a calendar without needing to manually select a journey each time.

The GTR sites also offer a full refund, with no admin fee, for unused Anytime/Off-Peak/Super Off-Peak tickets. Note that this is only available if you choose collection at a ticket machine and haven't yet collected your ticket, and it isn't available if you choose smartcard or e-ticket fulfilment. This way, there is no disadvantage if you change your mind/plans after booking.

 

[Haywain]

some retailers will let you do so until the end of the current timetable period (the middle of May).

Station ticket offices will (in theory, at least) allow walk-up tickets to be purchased up to 12 months in advance.