The idea behind salary sacrifice is quite simple. You give up part of your salary and, in return, your employer gives you a non-cash benefit, in this case a car.
Once you accept a salary sacrifice, your overall pay is lower, so you pay less tax, National Insurance and if you’re a member of your employers pension scheme, possibly less in pension contributions.
In addition, your employer will not have to pay their Employers’ National Insurance contributions and possibly pension contributions on the amount you sacrifice
The Salary Sacrifice will last for an agreed period, specified in your Variation of Contract. At the end of the agreed period, the Variation of Contract will come to an end and you will return to your original terms and conditions.
For information on how a salary sacrifice will affect your Maternity pay, please contact your Organisation's HR or payroll department.
Approval is required from your employer prior to ordering your car as we need to confirm the details you have provided are correct – any discrepancies may result in a delay with the ordering process.
As the car will be leased by your employer, they also need to agree to the contract terms.
A driver entitlement check form needs to be completed by everyone wanting to drive the car. This allows us to check all licences both at the start, and periodically throughout the lease, to make sure all drivers continue to be entitled to drive.
If you have a high annual salary level (typically in excess of £100k), you are at increased risk of pension taxes such as ‘Annual Allowance (AA)’ and ‘Lifetime Allowance (LA)’. You may find that the rise in your pensionable salary at the end of your salary sacrifice causes pension growth which could create an AA or LA charge. You are advised to seek independent financial advice about this before proceeding with any salary sacrifice.
There is a legal requirement to be paid above the National Minimum Wage after any salary sacrifice has been taken into account, which means for some colleagues, a salary sacrifice for a ‘big ticket’ item such as a car isn’t possible. An alternative solution in these circumstances is a Salary Deduction.
The car is provided in exactly the same way as it would be via a salary sacrifice; however the payment is taken from net pay.
This scheme will work out more expensive as savings in tax, National Insurance and pension contributions cannot be made.
Please note that this scheme is not offered by all employers – please contact a member of our team to discuss further.
This is a difficult question to answer – most cars are built to order and therefore should take between 10-16 weeks to arrive. Certain models may be quicker and some will almost certainly be longer.
The leasing company own your vehicle, your leasing company details can be located in the My Account section of our website under the ‘vehicle details’ or in your Driver Handbook. NHS Fleet Solutions are the fleet administrator and will manage all day to day aspects and operate on your behalf.
Your car will be serviced at a main dealer (Ford service Fords, VW service VW’s, but Ford don’t service VW’s!) For advice and support, please contact your leasing company who can process the booking for you. If you want to book the car in with the main dealer yourself, just give them a call and tell them it’s leased via ‘XYZ’ Leasing Company. Your leasing company details can be located in the My Account section of our website under ‘vehicle details’ or in your Driver Handbook.
If you require a courtesy car, you will probably need to show proof of insurance to the dealership; a copy of your insurance certificate can be downloaded (via a PDF file) in the My Account section of our website.
Please refer to your Driver Handbook for information on how to have your windscreen repaired/replaced. A copy can be downloaded from the My Account section of our website.
If your windscreen needs to be replaced, there is a £50 insurance excess payable – repairs are included in the lease costs.
Replacement tyres are included in the cost of the lease, you’re already paying for them, so don’t delay having them replaced!
The tyre supplier will vary from leasing company to leasing company (it will normally be ATS or Kwik-Fit), therefore please contact your leasing company who will advise you where you need to go. Some suppliers offer a mobile service, but before they’ll make a booking, they will need the tyre size and speed rating (found on the sidewall of the tyre).
Your leasing company details can be located in the My Account section of our website under ‘vehicle details’ or in your Driver Handbook.
An early termination fee is a financial penalty contractually due should your car contract not be completed for any reason. The value of the penalty depends upon a number of factors which include; the original contract length, the cost of the lease and how far into the lease you are when the contract is ended. It does reduce every year on the anniversary of the date you took delivery of your car.
The exact value is outlined on your original ‘Order Form’ (a copy of which can be found in the My Account section of our website).
In order to terminate the agreement, the penalty must be paid in advance of arranging collection of the car.
Yes, please contact your lease company who will issue the necessary travel documents and offer advice for driving abroad. They will need to know the dates of your trip and what countries you intend visiting.
Your leasing company details can be located in the My Account section of our website under the ‘vehicle details’ or in your Driver Handbook.
The majority of organisations operate a one month in arrears policy, so your first payment will be in the month following the delivery of your lease vehicle, for example if you take delivery of your car in June, your first payment will be from your July salary.
A few organisations will take payment within the month that your vehicle is delivered.
Yes, your vehicle includes breakdown cover for the duration of the lease. The contact number relevant to your lease can be located in the My Account section of our website under the ‘vehicle details’ or in your Driver Handbook. Please be aware that in some circumstances there may be a charge for breakdown services, for example - mis-fuelling, keys locked in vehicle and other non-mechanical call-outs.
At the end of the agreement, your car will be returned to the leasing company. There are industry standards for what condition a car can be returned in without incurring ‘damage’ charges. The industry body is the British Vehicle Rental and Leasing Association (BVRLA) who produce ‘fair wear and tear’ guidelines.
Should your car be returned with damage over and above what is considered ‘fair wear and tear’, a damage invoice will be raised by the leasing company. We understand this can be an emotive issue with drivers and will always act in the best interests of our customer and will negotiate with the leasing company on their behalf. However it is not always possible to argue that damage is within the industry guidelines.
Please contact our team on 0344 811 8228 to arrange the collection of your lease vehicle. We will require a minimum of five working days’ notice to have your car collected. Vehicles can only be collected Monday to Friday, excluding bank holidays.
Prior to collection, your vehicle needs a valid MOT certificate, be free of dashboard warning lights and the tyres need to be legal. If you require any help or advice please contact us on 0344 811 8228 or firstname.lastname@example.org.
If your lease is for 36 months, your car will require an MOT before it can be collected and returned. The cost is covered by the lease agreement.
Please contact your lease company who can make the arrangements for you or simply book your car into the dealership who carries out your routine servicing. Your leasing company details can be located in the My Account section of our website under the ‘vehicle details’ or in your Driver Handbook.
If you drive more miles than you have set the contract for, an excess mileage charge will apply. The rates will vary depending on the vehicle and when this was ordered. Charges for vehicles ordered after 18th May 2019 are as follows:
Petrol - 5p per mile
Diesel - 5p per mile
Electric - 10p per mile
Hybrid (Petrol & Diesel) – 10p per mile
PHEV - 15p per mile
If your order was placed prior to the 18th May 2019 please contact the team on 0344 8118228 for further information.
Please note these rates are subject to VAT.
If you early terminate your contract, the allowed mileage will be pro-rata over the period you actually paid for the car. If you extend the lease, additional mileage will be allocated also on a pro-rata basis.
All routine servicing is included within the cost of the lease.
There is no hard and fast rule as to when cars need servicing, it varies from manufacturer to manufacturer and also model to model. The service interval for your car will be outlined within the vehicle handbook (normally found within the glove box) - if you are unsure please contact a main dealer for advice.
It is very important that you are familiar with the service interval for your car, as should you neglect to adhere to the manufacturers’ guidelines for servicing, the warranty on the vehicle will be voided and all subsequent defects will not be covered by the manufacturer and will be your financial responsibility.
If you are moving to a public sector organisation that Fleet Solutions also provides the lease car scheme to, then it is likely that your car can go with you (subject to approval and a minimum of six months remaining on your current lease car contract).
If you move to a public sector organisation that Fleet Solutions does not provide a scheme to, we will approach your new employer and offer a transfer subject to the new employer meeting our contractual terms and conditions. This tends to be 50:50 whether they’ll accept the transfer or not. If it’s a no, the early termination penalty needs to be paid and the car will be returned.
If you leave the public sector, your car will almost certainly need to be returned.
For further information please contact us on 0344 811 8228.
Yes, please contact us and tell us the exact mileage and we can request a price for you from the leasing company. Unfortunately we have no input or influence on the price offered.
Once your vehicle has been ordered you will receive automated weekly progress emails. Alternatively, log into your account on our website and track progress in the My Quotes / My Order page.
Once your vehicle is in stock, we will contact you to arrange a convenient delivery date.
We try our best, but we are in the hands of vehicle manufacturers when it comes to building the car and keeping us informed of its progress.
From time to time, we get it wrong, but we will always endeavour to be as accurate as possible and should a delivery timescale slip, we’ll let you know as soon as we find out.
When your new vehicle arrives is in stock you will be contacted to arrange delivery on a date that best suits you. If you currently have a Fleet Solutions lease vehicle, the collection will also be arranged.
Once an order has been placed with the manufacturer it is not always possible to make any amendments, however we will always try. The rule here is, ‘the earlier the better’!
If you wish to cancel your order prior to delivery, a cancellation charge of £500 is payable.
Quotations are available 24/7 online via our website.
Create an account and simply select ‘Get a Quote’ - if you know what car you want, use the ‘I know what I want’ feature or to browse available cars within your budget, select ‘Help me choose.’
Remember, you can change the lease duration of your quote to either 24 or 36 months and can add drivers under the age of 21 on specific cars (for an increased cost).
If you require any help or advice please contact our team on 0344 811 8228 or email email@example.com
Your quotation will show a monthly tax liability which is payable because you will have a ‘company car’. How this amount is recovered depends upon how your employer reports its employee benefits to HMRC. There are essentially two ways of reporting benefits; via p11d or a more recently introduced method referred to as ‘tax at source’.
If your employer reports benefits via a p11d, then we will notify HMRC that you have taken delivery of a car and your tax code will be changed to reflect the fact you have a company car. It normally takes a month or two for HMRC to issue a new coding notice. If your employer’s benefits are ‘taxed at source’, you will not see a change to your tax code and the additional tax will be deducted by your employer direct from your salary and handed to HMRC.
If you contact HMRC to discuss your tax code, please confirm you have a ‘company car’ and that you do NOT make a monthly contribution towards it – this is because HMRC does not recognise salary sacrifice reductions as contribution towards the car, but not all of their officers understand this. It has been known for HMRC officers to incorrectly change tax codes taking salary sacrifice reductions into account only for their error to be discovered at year end, thus resulting in a significant underpayment. This can hopefully be avoided by confirming the above during any discussions with HMRC.
The ability to autoquote on Teslas has been removed from our website - this is due to Tesla operating differently from all other manufacturers. For example, Teslas are not 'built to order' but instead orders are matched to the next available vehicle and this makes it very difficult for us to provide accurate lead times (and vehicle updates). Tesla do not deliver vehicles and once a car becomes available, they only provide a window of 7 days in which you must collect; if this is missed, the ‘matching’ process starts again.
This does not mean we cannot order a Tesla, we just feel it appropriate to talk prospective customers through these challenges. Please call our Liaison Team if you wish to discuss options: 0344 811 8228.
Everyone who has a company car is subject to a ‘benefit in kind (BIK)’ tax charge. This amount is determined by the value of the car and the vehicles exhaust emissions. The tax applicable to your car is shown on your quotation as ‘Monthly Car Tax Liability.’
In order to get a salary sacrifice lease car via NHS Fleet Solutions, your employer needs to be satisfied that their qualifying criteria are met. Normally this means you are a permanent employee, however some organisations will have other rules. Check with our team if you have any queries.
The exact amount will depend on your personal circumstances, and will vary due to your salary level and whether you are in your employers pension scheme.
To find out how much you can save, create an account on our website and obtain a free no obligation quote www.nhsfleetsolutions.co.uk.
We can offer new car contracts for either 24 or 36 months. Occasionally we will make available selected used cars with different length contracts. Check our website for the latest offers and availability.
A number of state benefits are dependent on paying a minimum level of NIC, for instance Statutory Sick Pay and Job Seekers Allowance. You should consider the impact on such future benefits if the Salary Sacrifice means that your Revised Basic Salary falls below the starting level for paying NIC. For further information on the current starting level for NIC please contact your payroll department.
You should also be aware that a reduction in taxable salary may affect other company and state benefits such as statutory maternity pay, sick pay, and their level of entitlement in the event of death. A reduction in taxable salary might also affect more general financial matters such as mortgage applications.
From April 2003 the government introduced Credits, WTC and CTC and in 2013 UC. It should be noted that quotations do not take into account the impact on WTC, CTC or UC which may mean that it may not be appropriate for some employees to participate in the scheme. WTC and UC are means tested and WTC affects the amount of CTC an employee may receive. These credits consider the earnings and savings of the employee and their spouse/ partner. If participating in the scheme were to alter the amount of credits an employee could claim, any loss of credits may be greater than the tax and NIC savings that may be generated. In principle a company car Benefit in Kind is considered earnings for the purposes of these credits. Consequently each employee’s situation is different and it is necessary to take the spouse/partner’s salary and savings into account in order to estimate the most realistic impact of participating in the scheme. If you qualify for state benefits such as the Disabled Persons Tax Credit (DPTC) you may qualify for a higher level of credit.
If you are currently claiming WTC, CTC or UC you should consider very carefully the likely impact on your income before committing to any salary sacrifice.
Your car will be insured for social, domestic and pleasure purposes including commuting to a single place of work, and business use for your public sector organisation only.
If you want to use your vehicle for any other business purpose, please call us on 0344 811 8228 to discuss your requirements in more detail.
We’re happy if your employer is happy!
If you want another car, contact our team to find out if it’s possible.