Salary sacrifice for staff car parking ceases April 2018
February 19, 2018
The Government announced in the 2016 autumn statement that the tax and employer national insurance advantages of salary sacrifice schemes for car parking would be removed for new applications from April 2017 and for all employees from April 2018.
Therefore all colleagues who currently pay for their car park pass via the salary sacrifice scheme will automatically revert to paying by standard deduction from their April 2018 salary.
Although the amount of the car park charge on your payslips will not appear to change, because of the change in rules, you will no longer benefit from the reduced tax and national insurance and this will therefore have an adverse effect on your take home pay from April 2018.
If the car park charge appeared on the left hand side of your payslip in February 2018 you are currently paying for your parking permit by salary sacrifice. From April 2018 the approximate reduction in your take home pay will be as follows:
| Current monthly payment | Equivalent annual charge | Approximate reduction in monthly take home pay from April 2018 | Parking Permit Type |
| £21.25 | £255.00 | £8.70 | City/Sandwell full time higher rate tax payer |
| £17.00 | £204.00 | £5.60 | City/Sandwell full time lower rate tax payer |
| £10.63 | £127.50 | £4.40 | City/Sandwell part time higher rate tax payer
Rowley full time higher rate tax payer |
| £8.50 | £102.00 | £2.80 | City/Sandwell part time lower rate tax payer
Rowley full time lower rate tax payer |
| £5.32 | £63.75 | £2.20 | Rowley part time higher rate tax payer |
| £4.25 | £51.00 | £1.40 | Rowley part time lower rate tax payer |