Do you get tax free parking? 5

Pool Cars

If you work in town or city  parking costs can be high.

So if your employer gives you a parking space its a big help.

There is a tax exemption (tax and NI) for parking facilities that are within a reasonable distance of where you work and its not restricted to on-site parking.

The parking space can also be used in the evenings and weekends and isn’t restricted to the nearest car park.

You can also use Salary Sacrifice.

See EIM 21685 for further details

So yes its tax free, so why is there any confusion?

Well a few years ago (2009), we had stories like….

Commuters who drive to work face a new ‘parking tax’ of up to £350 a year.

Ministers are backing a ‘workforce parking levy’ which will come into force in Nottingham in 2012 – and is likely to be adopted across the country.

The pilot scheme will see firms with more than ten parking places for staff charged £250 a year for each, rising to £350 in two years.

Employers would be free to pass on the charge to their staff – meaning it would effectively be a tax on driving to work.

This meant that there was some confusion, but its all clear now and free parking is an excellent tax free employee benefit.
steve@bicknells.net

65% of SME’s rejected for a loan want to try alternatives… would you Reply

Bank loan

A government consultation ended last week into whether legislation should force banks to refer rejected loans to alternative sources of finance.

At present the largest four banks account for over 80% of UK SMEs’ main banking relationships. Many SMEs only approach the largest banks when seeking finance. Although a large number of these applications are rejected – in the case of first time SME borrowers the rejection rate is around 50% – a proportion of these are viable and are rejected simply because they don’t meet the risk profiles of the largest banks. There are often challenger banks and alternative finance providers with different business models that may be willing to lend to these SMEs.

Although the largest banks will sometimes refer these SMEs on, in many cases challenger banks and other providers of finance are unable to offer finance as they are not aware of their existence and the SMEs are not aware of the existence of these alternative sources of finance.

SME’s most trusted advisors are Accountants, according to Accountancy Age a fifth of SME’s are more open with their accountant than their bank manager and half believe that their Accountant is the most valuable source of business advice and just under half turn to their Accountant first for advise.

So why aren’t banks working more closely with accountants? I think its because its hard to work with individual accountants and build multiple relationships, its much easier to work with groups of accountants on a national basis such as www.business-accountant.com

Would you ask your accountant if you were looking for finance?

steve@bicknells.net