This guide explains your tax and National Insurance contributions (NICs) obligations if you provide an employee with a parking space. The same rules apply for cars and for other vehicles including motorcycles and bicycles.
On this page:
You provide a parking space at or near your employee’s workplace. The same rules apply whether the space is for a car or for another vehicle, such as a motorcycle or bicycle.
You have:
You provide a parking space to an employee while on a business journey. The same rules apply whether the space is for a car or for another vehicle, such as a motorcycle or bicycle.
Only two categories of journey count as business journeys:
For employees earning at a rate of less than £8,500 per year you have:
For company directors or employees earning at a rate of £8,500 or more per year:
How a dispensation can reduce your reporting requirements
The value to use is the cost to you of providing the parking space.
You provide an employee with a parking space that isn’t either:
As above, the same rules apply whether the space is for a car or for another vehicle, such as a motorcycle or bicycle.
For employees earning at a rate of less than £8,500 per year you have:
For company directors or employees earning at a rate of £8,500 or more per year:
The value to use is the cost to you of providing the parking space.
To check what's included in the £8,500 threshold for P11D reporting purposes, follow the link below.
EIM21685: car parking near work
NIM05625: Class 1 NICs - parking fees incurred at the permanent workplace
