Not so green

Citation

(1999), "Not so green", Work Study, Vol. 48 No. 3. https://doi.org/10.1108/ws.1999.07948cab.005

Not so green

Not so green

A subsidised employee bus service provided by office equipment giant Ricoh for 340 of its workers has been put under threat by a tax bill of £30,000 p.a. and a back tax bill of £75,000 which may force an increase in employee car use. Ricoh UK Products Limited received the £75,000 retrospective tax bill because the Inland Revenue view the bus service as a benefit in kind and tax it accordingly. The Revenue's demands seem to fly in the face of the Government's Integrated Transport Policy and John Prescott's environmentally friendly campaign to get people out of their cars and onto buses and trains. Ricoh have provided a bus service for employees based at their Telford site since the factory's opening in 1984. The service cost £118,000 last year and involves seven buses in the morning and evening for around 340 employees from Wolverhampton, Shrewsbury and Greater Telford. The service is available for all employees at 15p per journey whatever the distance. Because of the Transport Secretary's plans to reduce car dependence revenue officials have been asked to reconsider tax laws covering travel to work. Although subsidies for rail and bus travel are treated as a benefit in kind liable to tax, free parking spaces remain untaxed. Ricoh was disappointed with the response they received through correspondence with the Minister at the Treasury, Dawn Primarolo MP: "I appreciate Dr Hargreaves feelings about promoting 'green' public transport to cut down on private car use, but the provision by an employer of free or subsidised home to work transport can confer a real benefit to an employee compared to other employees who have to meet their own travel costs."