Workplace Parking Levy 2026: What Employers and Commuters Pay
Nottingham's Workplace Parking Levy charges employers with 11+ workplace parking spaces an annual fee per space, which most pass on to employees who drive to work. Here is how it works in 2026 and where else it could spread.
How the levy works in principle
Under the Transport Act 2000, any local transport authority in England can introduce a Workplace Parking Levy โ a licensing scheme charging employers for the workplace parking spaces they provide, above a set threshold. The stated aim is twofold: reducing car-commuting congestion, and generating a ring-fenced source of funding for local public transport improvements that the levy itself is legally required to help fund.
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Nottingham City Council introduced the UK's only currently operating WPL. Employers providing 11 or more workplace parking spaces must obtain a licence and pay an annual charge for each liable space above the exemption threshold.
| Feature | Detail |
|---|---|
| Threshold for exemption | 10 or fewer liable spaces |
| Who is charged | The employer (licence holder) |
| Charge basis | Per liable parking space, per year |
| Typical exemptions | Disabled badge holder spaces, certain emergency vehicles, some low-emission categories |
| Where revenue goes | Local transport schemes (legally ring-fenced) |
Worked example 1: a business just below the threshold
A logistics firm provides 9 staff parking spaces at its Nottingham depot.
| Item | Outcome |
|---|---|
| Liable spaces | 9 (below the 10-space exemption threshold) |
| WPL liability | None โ exempt |
Worked example 2: a business above the threshold
An office with 40 staff parking spaces in central Nottingham, of which 3 are reserved for disabled badge holders.
| Item | Outcome |
|---|---|
| Total spaces | 40 |
| Exempt (disabled) spaces | 3 |
| Liable spaces | 37 |
| Annual levy cost | 37 ร the current per-space rate |
The employer must budget for this as an ongoing annual cost, and decide whether to absorb it as a business overhead or pass some or all of it on to staff who use the parking.
Worked example 3: reducing liability by cutting spaces
The same office reduces its total parking provision to 25 spaces (still minus 3 disabled spaces = 22 liable), by actively encouraging cycling and public transport commuting and reallocating some of the former car park to other uses.
| Item | Before | After |
|---|---|---|
| Liable spaces | 37 | 22 |
| Annual levy cost | Based on 37 spaces | Based on 22 spaces โ a meaningful reduction |
Reducing genuine demand for on-site parking (rather than simply relabelling spaces) is the most sustainable way for an employer to reduce their WPL exposure over time.
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The legal power to introduce a WPL scheme is available to any local transport authority in England under the Transport Act 2000, and several cities have discussed the idea over the years as a congestion-management and transport-funding tool. As of 2026, Nottingham remains the only UK authority actually running one, but employers with sites in cities actively debating local transport funding options should keep an eye on local consultations, since a new scheme could, in principle, be introduced elsewhere with appropriate notice and consultation.
Use the car running cost calculator and salary calculator to model how a workplace parking charge โ whether absorbed by an employer or passed on to staff โ affects overall commuting costs.
Frequently asked questions
What is the Workplace Parking Levy?
The Workplace Parking Levy (WPL) is a charge that a local authority can impose on employers who provide a certain minimum number of workplace parking spaces for staff or visitors, under powers granted by the Transport Act 2000. It is intended to reduce congestion by discouraging car commuting and to raise funds for local public transport improvements. Nottingham City Council is the only UK authority currently operating a WPL scheme.
How does Nottingham's Workplace Parking Levy work?
Employers in Nottingham providing 11 or more workplace parking spaces must obtain a licence and pay an annual charge per liable space, reviewed and uprated periodically by the council. Employers with 10 or fewer liable spaces are exempt. Revenue raised is required by law to be spent on local transport schemes โ in Nottingham's case, this has funded tram network expansion and other public transport improvements.
Do employees pay the levy directly?
No โ the levy is charged to the employer, who holds the parking space licence, not directly to individual employees. However, many employers choose to pass some or all of the cost on to employees who use a workplace parking space, either as a direct charge for using a space or by factoring it into overall remuneration or benefits decisions.
Are there exemptions from the Workplace Parking Levy?
Yes, specific categories are typically exempt, including spaces for disabled badge holders, certain emergency service vehicles, and some categories of low-emission vehicle in specific schemes, alongside the general threshold exemption for employers with 10 or fewer liable spaces. Exact exemption categories are set by the specific local scheme, so check Nottingham City Council's current WPL guidance for the precise list.
Could a Workplace Parking Levy be introduced in other UK cities?
It is legally possible, since the Transport Act 2000 gives any local transport authority in England the power to introduce a scheme, subject to local consultation and implementation. Several other cities have considered or discussed WPL schemes over the years as a way of funding public transport and managing congestion, though as of 2026, Nottingham remains the only UK authority actually operating one.
Is the Workplace Parking Levy the same as the Congestion Charge or ULEZ?
No โ they are different mechanisms with different purposes. The Congestion Charge and Ultra Low Emission Zone (both operated in London) charge vehicles for driving into a zone, based on the vehicle and time of entry. The Workplace Parking Levy instead charges employers based on the number of parking spaces they provide for staff, regardless of whether or how often those spaces are actually used on any given day.
How much does the Workplace Parking Levy cost per space?
The exact annual charge per liable space in Nottingham is reviewed and uprated periodically by the council โ check Nottingham City Council's current published rate, since it has increased over time since the scheme's introduction. Employers should budget for this as a recurring annual cost per liable space, not a one-off charge.
How can an employer reduce their Workplace Parking Levy liability?
By reducing the number of liable parking spaces below the exemption threshold (10 or fewer), converting spaces to an exempt category where eligible (such as disabled parking), or actively encouraging alternative commuting methods (cycling, public transport, car-sharing) to reduce genuine demand for on-site parking, which can support a case for reducing the total number of spaces provided over time.
Does the levy apply to visitor and customer parking, or only staff parking?
It generally applies specifically to workplace parking provided for staff use โ spaces intended purely for visitors or customers are typically treated differently under most WPL scheme rules, though the precise definitions and how a specific site's parking is categorised should be checked against the local scheme's detailed guidance, since misclassification can create licensing risk for an employer.
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