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

Continue reading

To read the full Guidance note, register for a free trial of Tolley+™

TAKE A FREE TRIAL

Popular Articles

Owner-Managed Businesses

Definition of a close company

Definition of a close companyThe detailed definition of a close company is set out below, but in summary the rules are targeted at those companies where the owners can manipulate the activities of the company to influence their own tax position. Therefore, broadly speaking, in most cases an

14 Jul 2020 11:24 | Produced by Tolley Read more

Corporation Tax

Carried-forward losses restriction

Carried-forward losses restrictionOverview of the carried-forward loss restrictionAn important restriction in the use of losses carried forward was introduced by Finance (No 2) Act 2017. Subject to a de minimis of £5m (known as the deductions allowance), most carried-forward losses are restricted to

14 Jul 2020 11:09 | Produced by Tolley Read more

Employment Tax

Non-business expenses

Non-business expensesIntroductionIn order for an expense to be tax deductible it must be incurred because of an employee’s employment. Any non-business related expense is, therefore, not relievable except in some very particular circumstances.This guidance note deals with three separate issues. The

14 Jul 2020 12:16 | Produced by Tolley Read more

��Ƶ