[UK] Workplace parking levy for Scottish employees?

The Scottish Parliament’s Transport Bill passed Stage 3 on the 10th of October 2019.  An amendments to its original intention was made by the Scottish Greens in exchange for supporting the Scottish Budget earlier in the year.

Part 4A of the Bill established “workplace parking licensing schemes” under which certain local authorities may require a person provided with a workplace parking space to hold a permit.  Whilst the employer can meet the cost of this themselves, they may choose to pass this cost onto the employee.  Yet the individuals bought into scope of the “Workplace Parking Levy” applies not only to workers of the business but also visitors such as suppliers and clients.

Global Payroll Association Comment

We strongly advise Scottish employers to be aware of the passage of the Transport Bill through to enactment.  Then, once it has Royal Assent, look out for whether the employer’s local authority will introduce a workplace parking licensing scheme.

This will have wide implications for businesses and retailers.  Yet the intention of the licensing scheme is admirable given the fact that a charge will incentivise the employer to offer environmentally-friendly schemes such as cycle to work.

The Scottish Parliament’s Transport Bill passed Stage 3 on the 10th of October 2019.  An amendments to its original intention was made by the Scottish Greens in exchange for supporting the Scottish Budget earlier in the year.

Part 4A of the Bill established “workplace parking licensing schemes” under which certain local authorities may require a person provided with a workplace parking space to hold a permit.  Whilst the employer can meet the cost of this themselves, they may choose to pass this cost onto the employee.  Yet the individuals bought into scope of the “Workplace Parking Levy” applies not only to workers of the business but also visitors such as suppliers and clients.

Global Payroll Association Comment

We strongly advise Scottish employers to be aware of the passage of the Transport Bill through to enactment.  Then, once it has Royal Assent, look out for whether the employer’s local authority will introduce a workplace parking licensing scheme.

This will have wide implications for businesses and retailers.  Yet the intention of the licensing scheme is admirable given the fact that a charge will incentivise the employer to offer environmentally-friendly schemes such as cycle to work.