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About the Staff Parking Scheme
Under current Government legislation, employers are able to provide car parking for their employees at or near to their workplace, without the employee paying any Tax or National Insurance on the cost of the parking.
The Scheme works well where employees are purchasing season tickets or parking permits. The Scheme can also be used where employees are required to pay their employer a contribution for use of an on-site parking space.
Benefits
- Employees can save up to 50% on their parking costs and pay for their parking monthly.
- The company saves the Employer National Insurance Contributions on the cost of the parking.
How the Staff Parking Scheme Works
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The company purchases the Season Ticket of Parking Permit
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The cost is recovered from the employee via a deduction from their gross pay (Salary Sacrifice) over 6 or 12 months
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This provides the employee with a Tax efficient method for paying for parking and spreads the cost
Illustration of Employee Savings
|
Basic Rate Tax Payer |
Higher Rate Tax Payer |
|
|
Annual Parking Costs |
£1000 |
£1000 |
|
Cost to Employee* |
£575 |
£502 |
|
Net Saving |
£428 |
£498 |
* Assumes VAT is reclaimed by the company