Parking provision and expenses

Produced by a Tolley Employment Tax expert

Employment Tax

Guidance

Car parking facilities at or near to the employee’s workplace

There is an exemption from tax and NIC where an employer provides parking, or pays for or reimburses an employee for the costs associated with car parking at or near the place of work; there are no reporting requirements. The exemption covers parking for all cars, vans, motorcycles and bicycles.

This exemption applies regardless of how the benefit is provided. Whether the employer provides a car park, reimburses costs, or provides a voucher or tokens for parking.

See Simon’s Taxes E4.715A and E8.1119. HMRC’s guidance is at EIM21685 and EIM01030.

Definition of ‘at or near’ the workplace

There is no legislative definition for what ‘at or near’ the workplace means. HMRC’s guidance at EIM21685 encourages a flexible approach as long as parking is within ‘a reasonable distance’.

Where an employer uses an external car park, there is no requirement for it to be the closest one to the workplace. The employer may also choose car parks using a number of factors including cost. The nearest one might

Access this article and thousands of others like it
free for 7 days with a trial of Tolley+™ Guidance.

TAKE A FREE TRIAL

Popular Articles

Owner-Managed Businesses

Residential property and capital allowances

Residential property and capital allowancesResidential property ― plant and machinery allowancesOrdinary residential property does not, and never has, qualified for capital allowances. as CAA 2001, s 35 denies plant allowances for expenditure incurred in providing plant or machinery for use in a

14 Jul 2020 17:14 | Produced by Tolley in association with Martin Wilson and Steven Bone Read more

Owner-Managed Businesses

Sales, advertising and marketing

Sales, advertising and marketingExpenditure on sales, advertising and marketing activities may include amounts which are disallowable for the purposes of calculating trading profits. This may be because the expenditure is:•capital in nature (see the Capital vs revenue expenditure guidance note)•not

14 Jul 2020 13:28 | Produced by Tolley Read more

Corporation Tax

Indexation allowance and rebasing

Indexation allowance and rebasingThis guidance note explains the general rules surrounding the availability of indexation allowance (which was frozen at December 2017) on the disposal of company assets and provides information on the rebasing rules for assets held on 31 March 1982. For an overview

14 Jul 2020 11:59 | Produced by Tolley in association with Jackie Barker of Wells Associates Read more

��˾��ҹ��