Tax For Provision Of Parking Spaces

There are some important rules you must be aware of if your provide parking spaces to your employees. If the parking spaces you provide are at, or near your employee’s workplace, then you are entitled to an exemption. This means there is no requirement to report anything to HMRC and you are not required to pay any additional tax or National Insurance for these spaces. These rules include the provision of parking spaces for cars or motorbikes at, or near the employees place of work. The provision of facilities for parking bicycles is also exempt.

There is no legal definition of the words ‘at or near’ in the relevant act and HMRC say the exemption is available in any case where parking facilities can be said to be within a reasonable distance from the place of work.

However, if you provide parking spaces which aren’t covered by an exemption, you will need to report them on form P11D and pay Class 1A National Insurance.

The exemption does not apply to parking spaces that are not either:

  • at or near the employee’s workplace
  • for use on a busy journey.

Posted by Cassey Nixon on

28th October 2019

Categories

  • Income excluded from property business

    HMRC publishes a list of income streams that are excluded from a UK property businesses’ taxable income. The list includes fishing concerns, hotels and guest houses, tied premises, caravan sites, lodgers and tenants in your own home, extra services to tenants and letting surplus trade accommodation. In most cases the income from these activities will […]

    Andrea L Richards | Accounts Navigator Associates Ltd
  • When National Insurance Credits can be claimed

    National Insurance credits can help qualifying applicants to fill gaps in their National Insurance record. This can assist taxpayers to build up the amount of qualifying years of National Insurance contributions and thus increase the amount of benefits a person is entitled to receive, for example, the State Pension. National Insurance credits are available in […]

    Andrea L Richards | Accounts Navigator Associates Ltd