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Smarter Parking Can Save Your Small Business Money

Sir Richard Branson recently urged the government to get behind small businesses, highlighting that they are the way to 'get growth in the economy and to create more jobs'. 'And so say all of us', I hear the nation's small employers say. Small enterprises are, indeed, vital to Britain's economy; they currently employ some 13.8 million people and contribute £1.5 billion to the nation's GDP.

Small enterprises are, indeed, vital to Britain's economy.

Most small businesses comprise just a handful of employees and an owner working closely alongside his or her staff. But whilst small firms are subject to most of the same legislative burden as larger companies, they do not have the same in-house specialist resources to handle it. But, for once, there is some very good news for small businesses from HMRC. Something you can access right now which will save money for both you and your employees.

Workplace Parking Scheme

The work place parking scheme is an HMRC-approved arrangement to help employers and their staff with the cost of parking. Under a 'salary sacrifice' agreement the employee pays for the cost of a car park season ticket through monthly payroll deductions.

This arrangement saves the employee money because the amount deducted is not subject to tax or NI. You, as the small business owner, save money too because the portion of salary deducted at source is not subject to employers' NI either. Individual staff can save hundreds of pounds a year and you, depending on how many of your staff opt into the scheme, can potentially save even more.

How Does This Help My Small Business?

A lot of larger firms have already embraced the scheme and have begun to enjoy its benefits; but there's no reason why smaller firms shouldn't get involved too. When you're running a small business, you work hard and put in long hours. You also work very closely with your employees and know all about them and their families and, indeed, feel some responsibility for seeing that all is well with them.

The workplace parking scheme provides you with another way of putting a little extra money in the pockets of your workers.

In the present economic climate, you've probably not been able to give your staff a pay rise for some time. The workplace parking scheme provides you with another way of putting a little extra money in the pockets of your workers. It also helps both you and your staff with budgeting; they have a fixed deduction each month and you have a fixed amount you save in employers' NI.

Many small businesses do not have on-site parking so staff have to park elsewhere, often paying hefty charges for the privilege. This is particularly relevant to small firms located in our inner cities and town centres, the very people who are driving Britain's urban regeneration initiative. This scheme plays its part in helping because it offsets some of the cost of city centre parking.

What About All the Paperwork?

Naturally, there is some paperwork you will need to complete, but only the type of payroll records you would normally keep. You will work with an employee benefits specialist partner company to help you set up the scheme in your firm and to advise both you and your staff.

Author: Eoin Olivers photo

Author: Eoin Oliver

Eoin Oliver is a web designer and blogger with six years of experience writing content and designing graphics for clients large and small. For the past three years Eoin has been focused on researching and writing about the childcare voucher scheme. When not hard at work, Eoin can be found in the company of his 4-legged companion Layla.

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