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11 Mar 2008 8:56AMRate this!
Alan Lowrey
Member - 1 post
Kevin, the good news is that the provision of car parking at, or near to, the normal workplace is exempt from a charge to tax by reason of section 237, Income Tax (Earnings and Pensions) Act 2003. The exemption also applies to the reimbursement of employees' parking costs by the employer.
The sensible approach where employees have to pay for parking is to invite them to sacrifice salary to the value of their annual parking charges so that they receive the benefit of tax-exempt parking and save tax and NICs on the amount of salary forgone.
If the annual parking costs are, say, £500, a Higher Rate (40%) taxpayer will save over £200 per year in tax.
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