For many people, travel expenses are a substantial cost, but also a potential tax-deductible expenditure – something our Manchester accountants can help you to determine.
And in light of figures published by Sainsbury’s Bank, there may be the opportunity to save hundreds of pounds on your annual travel costs, with significant implications for your personal finances overall.
The financial services provider looked at several common commuter journeys from up and down the country, including a number that connect Manchester with the towns and cities that surround it.
For instance, if you commute from Leeds to Manchester, a monthly train ticket will cost you £286.10, at an annual cost of £3,433.20 – but by a year pass and the price is £2,980.00, a saving of £453.20.
Compared with the weekly ticket price of £74.50 over 52 weeks – equivalent to £3,874.00 over the course of a full year – you can save £894.00 by investing in the annual pass upfront.
Smaller savings can also be made even on the relatively short journey from Stockport to central Manchester, a commute with a weekly ticket price of £21.70.
This equates to £1,128.40 over a year, while the monthly price of £83.40 works out at £1,000.80 – but an annual ticket is priced at £868.00, a saving of £132.80 on the monthly price and £260.40 on the weekly ticket.
If your travel expenses form a core part of your personal finances – either as a cost you need to bear, or as a tax-deductible expense – it may be worth speaking to our Manchester accountants about how any change in your ticket price could affect your income after tax.
Remember too that the new year typically comes with increasing train fares in its wake, so if your commute is costing more than it used to, this could be one way to cut your costs.