Now drivers face parking bill of £500 ... with VAT
SCOTS workers are facing a £500 parking bill under the SNP’s controversial workplace tax after it emerged they will also be charged VAT.
The hidden cost will see the price of each space soar by £83 – if employers decide to pass on the levy to staff.
HM Revenue & Customs (HMRC) confirmed VAT would apply if employees are forced to pay the levy, which senior SNP figures have claimed should happen.
However, VAT is not payable by companies who decide to take on the charge themselves.
Nottingham is the only city in the UK with a workplace parking tax, with the levy set at £415 for employers. But many businesses pass this cost on to staff, who face paying an additional £83 per space – pushing the charge up to nearly £500.
This is because there is ‘no relief’ for car parking charges, with all spaces then subject to VAT at 20 per cent.
The revelation comes amid a growing backlash against the SNP’s proposals, with one senior Nationalist admitting it is a ‘dreadful’ plan.
Finance Secretary Derek Mackay has pledged to devolve powers to councils, allowing them to introduce a car parking levy following a last-minute Budget deal with the Scottish Greens.
Writing at the weekend, Mr Mackay claimed that the tax was the fault of all of Holyrood’s parties – as Labour, the Lib Dems and Conservatives had failed to conduct talks with him over the financial year.
But the Tories launched a fresh attack on the plans yesterday.
Finance spokesman Murdo Fraser, said: ‘The SNP’s car park tax is simply another punitive tax on hard-working Scottish taxpayers.
‘Cobbled together to keep the Greens happy, without any consultation, this tax has been unravelling from the beginning.
‘Every day we are finding another negative aspect to this tax – now we know that if it is handed to employees, it will be subject to VAT and another 20 per cent increase.’
He continued: ‘This tax on employment is yet more evidence of the SNP’s anti-business agenda. This just demonstrates the shambles the car park tax has become.
‘Surely the SNP must now see sense and abandon this disastrous tax.’
City of Edinburgh Council leader Adam McVey has said employees should foot the £415 annual bill simply for driving to work.
But according to HMRC, with staff paying VAT, this cost would soar to £498.
In Nottingham, the local authority states: ‘VAT is not payable by employers to Nottingham City Council on the WPL charge. If, however, an employer decides to introduce parking charges for its employees, this would be subject to VAT.’
Last week, the Scottish Daily Mail launched a campaign against the workplace parking levy, calling on the SNP Government to scrap its plans.
Since then, Scotland’s main opposition parties have united against the SNP/Green tax, and a number of Nationalist MSPs have also spoken out against it.
Richard Lyle has said: ‘I am not for your parking charge levy, and I speak on behalf of thousands of motorists who have been taxed enough.’
His party colleague Joan McAlpine, representing South Scotland, has said she does not want to see the charge imposed in her area.
A Scottish Government spokesman said: ‘Any charge would be at the discretion of local authorities, based on local circumstances, so any predicted costs to businesses or individual workers are speculation at this point.’