Tax / BIK Question

11
Posted 20th Feb
Hi,

Wondered if anyone could help.

I work for the NHS and as part of my job am expected to travel between sites.

As such, I need access to the various hospital car parks.

I have paid for this via salary sacrifice for years at a rate of £22 per month.

A couple of days ago I get a tax bill saying I had received a BIK from my employer and had therefore underpaid on tax for last tax period and this. My tax code has been updated and the money will start been taken off me to repay.

As I understood it, car parking was not a taxable BIK if you started paying it pre 2017?

Is anyone up on this? I am thinking either there is a mistake, or there is no point in paying via salary sacrifice now due to affect on my pension!

This is my only salary sacrifice so I have little/no understanding of BIK.

Many thanks
Rob
Community Updates
Ask
11 Comments
car parking at the other sites (on this basis) should be a non-taxable expense.. looks like BIK is being applied as a consequence of £22/month. You might be better off just claiming through expenses but you need to work out if the tax / monthly payment outweigh your actual car parking costs?
I don't know if this adds to the complexity, but the policy states that I am not paying for a car parking space, I am paying for the administration of the car parks (as a space isn't guaranteed).
I don't get it, if the employer sends you somewhere to do your job, he has to reimburse you for the parking costs.
your employer has probably notify the tax man that you had p11d benefits for the last year. did your employer issue you with a p11d certificate?
Buckyball20/02/2020 19:17

I don't get it, if the employer sends you somewhere to do your job, he has …I don't get it, if the employer sends you somewhere to do your job, he has to reimburse you for the parking costs.


not necessarily. i was speaking to someone who worked for the council and who assesses people for care assistance from the council. she goes to visit people in their homes to do the assessment and annual reviews and she says that she has to pay for the car parking herself.

i also spoke to carers and they also have to pay for their own parking costs. if it is part of your contract that you would have to use your own car and pay for your own parking then you will have to pay that apparently.
Buckyball20/02/2020 19:17

I don't get it, if the employer sends you somewhere to do your job, he has …I don't get it, if the employer sends you somewhere to do your job, he has to reimburse you for the parking costs.


It is in my contract that I must be prepared to work 'Cross site' the car parks I use are staff only car parks with no access to non 'fob' holders.

An intersite bus is also available, running half hourly. I don't use this as my meetings are often back to back and 10 min drive between sites reduces missed time in meetings.

So to perform my role, a car is a must, parking on site is a must.

Paid patient/visitor parking is available at £3.20 per visit, but known staff using the paid parking will (quite rightly) be asked to remove their car - the parking is difficult for patients too!
mutley120/02/2020 19:59

your employer has probably notify the tax man that you had p11d benefits …your employer has probably notify the tax man that you had p11d benefits for the last year. did your employer issue you with a p11d certificate?


No P11D that I have had sight of.
Robj120/02/2020 20:10

No P11D that I have had sight of.


this link seems to state that from 06.04.2017 it will be considered benefit in kind and is taxable but for existing salary sacrifice it will be come into effect a year later, so from tax year 2018/19.

this is why you have been asked to pay tax for the last tax year.

icaew.com/arc…faq
mutley120/02/2020 20:18

this link seems to state that from 06.04.2017 it will be considered …this link seems to state that from 06.04.2017 it will be considered benefit in kind and is taxable but for existing salary sacrifice it will be come into effect a year later, so from tax year 2018/19. this is why you have been asked to pay tax for the last tax year.https://www.icaew.com/archive/membership/support-throughout-your-career/technical-and-ethics-support/icaew-tax-and-vat-helpline-provided-by-abbey-tax/income-tax-and-nic/august-2017-faq


Thank you - so looks like I might be better off not using salary sacrifice then?
Robj120/02/2020 20:23

Thank you - so looks like I might be better off not using salary sacrifice …Thank you - so looks like I might be better off not using salary sacrifice then?


this article will give you the information on salary sacrifice and in particular the car parking scheme

moneyadviceservice.org.uk/en/…mes
mutley120/02/2020 20:38

this article will give you the information on salary sacrifice and in …this article will give you the information on salary sacrifice and in particular the car parking schemehttps://www.moneyadviceservice.org.uk/en/articles/salary-sacrifice-schemes


Perfect, thank you!
Post a comment
Avatar
@
    Text

    Discussions

    Discussions

    Top Merchants