Would anyone using their vehicle for business purposes and opting for salary sacrifice be in breach of the salary sacrifice agreement if he/she got reimbursed the car parking fees?
Anyone who opts to pay via salary sacrifice, who uses their vehicle for business purposes, and is subsequently reimbursed car parking fees would be viewed by the Customs and Revenue as breaking the salary sacrifice agreement and would require repayment of the employee’s tax and employee’s and employer’s national insurance. The individual needs to assess the amount of days they would use their car on county council business, the cut off point would likely be where the benefit in tax and national insurance savings for the employee is outweighed by the reimbursement of car parking charges arising from business use, and this works out around 66 journeys for a basic rate tax payer, but varies depending on the employee’s marginal rate of tax.
Related Questions
- Would anyone using their vehicle for business purposes and opting for salary sacrifice be in breach of the salary sacrifice agreement if he/she got reimbursed the car parking fees?
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