Expenses and benefits: parking spaces
What to report and pay
If the parking spaces you provide aren’t exempt, you may have to report them to HM Revenue and Customs (HMRC), and you may have to pay National Insurance on the cost.
Spaces you provide for use on business journeys
If you provide parking spaces for business journeys, you can get exemptions (which have replaced dispensations). This means you won’t have to include them in your end-of-year reports.
If you don’t have an exemption, you must report the cost to you of providing the parking space on form P11D.
You don’t have to pay tax or National Insurance on these parking spaces.
Other parking spaces you provide
This covers parking spaces you provide that aren’t either:
- at or near the employee’s workplace
- for use on a business journey
You must:
- report the cost on form P11D
- pay Class 1A National Insurance on the cost to you of providing the parking space
Salary sacrifice arrangements
If the cost of the parking spaces is less than the amount of salary given up, report the salary amount instead.
These rules don’t apply to arrangements made before 6 April 2017 - check when the rules will change.