NCP has launched a product that allows employers to offer tax-free parking as a salary sacrifice benefit. The car parking company is offering organisations two ways to offer the perk to car driving staff. They can either offer an employer-paid parking space as an additional benefit, without any additional employee tax liability, or through a salary sacrifice scheme where an employee would pay for the space directly from wages, reducing an employee’s tax liability because workplace car parking is a non-taxable benefit. Peter O’Driscoll, national accounts manager at NCP, said that as the cost of public transport continued to increase, more employees would drive to work and thus need to park. Organisations must be aware that there are rules and regulations from the Inland Revenue that determine the way such a scheme must be set up, such as the distance the car park must be away from the workplace. NCP, which has 600 car parks across the country, has just taken over another five car parks in Croydon, a town that it says is a big centre for office-based staff who would benefit from tax-free parking.
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