Car parking costs

Car parking costs

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Has anyone claimed for the costs of car parking in relation to the fact that an employee has no choice other than to use car parking facilities, due to the nature of their work or the unsociable hours.

In this case it is a nurse who, due to where the hospital is, has to use her car for work because she works shifts and there is no public transport available after a certain time.

They have no allocated parking and therefore need to use the main hospital car parks and are charged, a discounted rate of £ 2.40 per day.

According to the Inland Revenue, if this was paid by the Employer, it would not be chargeable to tax and therefore, why can the employee not claim this as a necessary employment expense and claim tax relief accordingly?

Your thoughts and comments would be appreciated 

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By Steve Kesby
22nd Nov 2011 16:10

Salary sacrifice

It is correct that if the employer paid for the employee to park, the BIK arising would be exempt from tax, because there is a specific exemption in this respect in the legislation.

However, the employee is unable to claim a corresponding relief as the expense deductions are less generous and travel expenses relating to "ordinary commuting" are expressly denied deduction.

The way around this would be for the employee to enter into a salary sacrifice arrangement with the employer, such that in exchange for an agreed reduction in gross salary, the employer provides the employee with or reimburses the employee for the parking.  NMW concerns may apply, however.

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