dataplan payroll services

Save up to 44% with Workplace Car Parking Schemes

Save up to 44% with Workplace Car Parking Schemes
Richard Rowell
Written by
Tuesday, 19 January 2010 14:42

The provision of parking to an employee for a car or motorcycle is exempt from Income Tax and National Insurance Contributions.

This concession covers situations where the employer pays directly for the parking or reimburses the employee for parking charges. This affords employers with an excellent opportunity to pass on a tax saving benefit to employees.

A tax efficient route is for employers to pay for the parking costs and deduct through a Salary Sacrifice from the employee.  This provides for a tax and NIC saving for the basic rate tax payer of 31% thereby reducing the cost of the car parking by this amount.

Employers also benefit with a saving of 12.8% in respect of NIC.

The parking does not need to be on the employers premises and can include parking at a public car park or other facility provided it is near to the place of work. There is no strict definition of 'near to the place of work'.
 


 

Richard Rowell

Richard is the managing director of Dataplan Payroll Limited and is also responsible for the ideas and development of Dataplan's innovative technology solutions such as ePaysafe.

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