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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.

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