Betekintés: Salary Sacrafice, Car Scheme

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SALARY SACRIFICE CAR SCHEME www.knowlesfleet.com 01206 255420 ABOUT THE SCHEME SALARY SACRIFICE PROVIDES THE OPPORTUNITY FOR ALL ELIGIBLE EMPLOYEES TO HAVE ACCESS TO A BRAND NEW CAR. Salary sacrifice allows you to pay for a car by reducing the amount you earn before tax and national insurance is applied. The main benefit is that you will save Income Tax, National Insurance and Pension Contributions once the salary sacrifice has been applied. To qualify you must be a permanent employee and be paid above the national minimum wage after your salary has been reduced. HOW TO OBTAIN QUOTES You can use our online service or contact our office for assistance. We need to know your salary and tax code to calculate accurate savings. Signing up to www.knowlesfleet.com is quick and simple. You will have a personal welcome page where you can request new quotes and view all previous requests. Your quotes will normally be available to view within 24 hours of submission. WHAT VEHICLE CAN I

CHOOSE You can choose any car that is available in the UK with your employers approval. The Public Sector gets some of the largest discounts available and we choose the best price from 8 leasing companies to ensure that you get the best deal. Low CO² & low list price = Greatest savings IS THERE A LIMIT TO HOW MANY QUOTES I Knowles Associates if you have a problem CAN HAVE during the life of the contract. There is no limit to the number of quotes that WHO IS INSURED TO DRIVE THE CAR you can request. However, we have a limit of five cars per session to enable us to turn The car is insured for you and your partner. round the quotes quickly. Additional drivers may be added at an increased cost. We suggest you initially request quotes for the basic model of different vehicles without too WILL I NEED TO PAY A DEPOSIT many extras for comparative purposes. Once you have decided which car you would like, There is no deposit and no credit checks. you can then enhance the specification

and CONTRACTED MILEAGE add extras. If you need advice, please contact our The annual mileage will be agreed before the dedicated team on 01206 255420. car is ordered. You must submit a mileage claim each month for any business mileage HOW DO I PROCEED WITH A CAR travelled. If you are happy with the quote, complete your An excess mileage charge will apply if the application online and follow the progress of contracted mileage is exceeded. the car from order through to delivery. END OF CONTRACT ARRANGEMENTS PROGRESS OF MY ORDER At the end of the contract you can: We will automatically inform you weekly of  Replace your car with a brand new one progress or changes to the estimated delivery  Purchase it date. It will not be necessary for you to contact  Return the car us. You will be required to return the car in a clean and tidy condition. If the car is returned with previously un-notified damage beyond The standard term is 36 months, but other normal fair wear and tear you may

be periods can be arranged. responsible for any additional charges. A fair wear and tear guide is available on our WHAT IS INCLUDED IN THE CONTRACT website. CONTRACT TERM You will be provided with a new car including CAR BENEFIT TAX insurance, maintenance and servicing. It also includes road fund licence, accident A salary sacrifice car is a company car and all management, and breakdown and recovery cars provided under this type of arrangement services. will attract car benefit tax and will affect your tax code. An estimate of your tax liability will All replacement parts such as tyres, batteries be provided in each quote you receive. You and exhausts are included in the contract will receive a P11D form at the end of each (subject to being a result of ‘fair wear and tax year which will confirm your taxable tear’). You will also have the full support of benefit. Sign up at www.knowlesfleet.com or call us on 01206 255420 HOW WILL THE SCHEME AFFECT ME? It is crucial to

understand what a sacrifice will mean in practical terms before entering any arrangement. You should consider the effect that a reduction in pay may have. Salary Sacrifice may also affect your entitlement to the following:  Statutory Sick Pay (SSP)  Statutory Maternity Pay (SMP)  Ordinary Statutory Paternity Pay (OSPP) NATIONAL MINIMUM WAGE  Additional Statutory Paternity Pay (ASPP) The minimum wage is a key factor when  Statutory Adoption Pay (SAP) considering salary sacrifice. This is because  State Pension current legislation does not allow you to be  Any means-tested benefits paid below this amount.  Tax Credits If you have a salary sacrifice arrangement SALARY SACRIFICE AND CONTRIBUTIONthat takes you below this limit you must give BASED BENEFITS up the item you sacrificed. STATE PENSION, CREDITS BENEFITS AND TAX Salary Sacrifice could have an effect on your entitlement to state benefits and tax credits and so should be carefully considered before you

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decide to proceed. When you sacrifice cash pay in return for a car, you will not pay National Insurance Contributions (NICs) on the value of the pay you sacrificed. Although this means you will save NICs it also cuts the earning on which you pay NICs and may take your earnings for which NICs are due below the Lower Earnings Limit (LEL) (£109 per week in 201415). Entitlement to contribution-based benefits is related to the amount of NICs you pay. Reducing your pay by way of Salary Sacrifice may reduce the amount of earnings that you pay NICs on to below the LEL so that you are no longer paying NICs. Even if your earnings remain above the LEL, the reduction in the amount of NICs you pay could reduce your entitlement to contributionbased benefits. Contribution-based benefits include: INCAPACITY BENEFIT If your deductible earnings fall below the LEL, you may not be entitled to Incapacity Benefit, If this happens, you may be entitled to Income Support based on Incapacity which is

Entitlement to some benefits is based on the a means tested benefit. amount of NICs you pay and others on the amount of your earnings. Entering into a SALARY SACRIFICE AND EARNINGSsalary sacrifice arrangement could affect RELATED BENEFITS current or future entitlement to a range of benefits. Entitlement to earnings-related benefits is based on your level of earnings, not including For most, paying less NICs may not any amount sacrificed. adversely affect your benefit entitlement because you may still be paying enough NICs Earnings-related benefits include: to qualify for benefits, you may be deemed to still be paying enough NICs or if you only MATERNITY ALLOWANCE sacrifice for a short time your contribution history will only be affected for that period If your cash earnings fall below £30 per week therefore the effect on your benefit your will lose your entitlement to Maternity entitlement would be minimal. Allowance (MA). If your cash earnings fall sacrifice schemes. between £30

and £125 per week you will still be entitled to MA but at a variable rate. If your STATUTORY SICK PAY/LONG TERM SICKNESS earnings are £125 a week or more you will If your average weekly earnings fall below the receive the full standard amount of MA. LEL you will lose your right to Statutory Sick SALARY SACRIFICE AND WORK-RELATED Pay (SSP). If this happens you may still be PAYMENTS entitled to Income Support or Incapacity Benefit. Work-related payments paid by your employer are based on your average earnings over a You can stay in the scheme during periods of fixed period of time before you begin receiving sickness provided that your sick pay, after them. The amount sacrificed is not included salary sacrifice, does not fall below the as part of your average earnings for national minimum wage. It is not advisable to calculating these payments, so the amount enter the scheme if you know or suspect that you receive could be reduced as a result of you may need to take extended periods of

the sacrifice. leave, i.e. surgery. Work-related payments include: MATERNITY PAY The Statutory Maternity Pay (SMP) that you are entitled to is calculated based on your earnings during the eight week period leading up to the 15th week before the baby’s due date. If you are sacrificing salary during this period the SMP will be calculated on the lower amount. To ensure that your SMP is not reduced, you can decide to either; stop the salary sacrifice and return the vehicle before the SMP calculation period, or retain the vehicle but transfer the salary sacrifice to a salary deduction arrangement again before the SMP calculation period. If long term sickness develops during the period of the sacrifice, this can be treated as a life style change and the car could be retained under a salary deduction arrangement. PAYMENTS ABOVE BASIC SALARY Payments over and above the basic salary, that are based on an hourly rate, such as overtime, call out etc. will not be affected by the sacrifice.

EARLY RETIREMENT In the event of an early pension due to redundancy etc. the pension may be based on the lower salary (after the sacrifice is applied), for further information contact your payroll department. If you are pregnant or expect to have a period REDUNDANCY PAYMENTS of maternity leave you should carefully consider whether to join the scheme. Redundancy pay may be affected by salary sacrifice, for further information contact your Occupational Maternity Pay (OMP) payroll department. calculations are not affected by salary SALARY SACRIFICE FAQ WHAT HAPPENS IF MY EMPLOYMENT AT THE TRUST ENDS FOR WHATEVER REASON? If you choose to leave the scheme early a termination charge may apply. The charge will depend on the car and when it is returned. An indication of the early termination charge is provided on the quote. If you leave your post with the Trust for whatever reason, the agreement will also terminate. Under the terms and conditions of the agreement any outstanding amounts

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can be taken from your final salary as a net payment. If your final salary does not cover the outstanding balance we will send you an invoice requesting payment. Please note that if the invoice is not paid the Trust will request the services of a debt collection agency to recover the outstanding balance. This also applies if you terminate your contracted post and you only work on the bank. WILL JOINING THE SCHEME AFFECT MY ABILITY TO CLAIM WORKING FAMILY TAX CREDIT? It might but each working family situation is unique therefore if applicable you should always take advice regarding Working Tax Credits. Tax credit information is available at www.hmrc.gov.uk/calcs/ccin.htm or by calling the helpline on 0845 300 3900. WILL THE SCHEME AFFECT MY APPLICATION FOR LOANS AND MORTGAGES? The lender will write to the Trust for a reference. We will give the lender details of your pre sacrifice salary (which is your salary before the salary sacrifice reduction), which the majority of lenders will

accept. For the benefit of other lenders we will also show separately the annual amount of each salary sacrifice scheme you may have. For example if your pre salary sacrifice salary is £20,000.00 per year and you have 2 salary sacrifice schemes, one for the Car and one for the Voucher Scheme, the information will look as follows: Annual Salary £20,000.00 per year Salary Sacrifice Car £3,500.00 per year Salary Sacrifice Voucher Scheme £1,000.00 per year WILL JOINING THE SCHEME AFFECT MY NHS PENSION? 1995 NHS PENSION SCHEME CURRENT ARRANGEMENTS If you are a member of the 1995 NHS Pension Scheme your pension benefits are based on your best year of the last 3 years prior to retirement. This means that should you have the reduced salary in force when you come to retire or receive benefits, these benefits will be affected. You need to decide if this could apply to you. Nearer your chosen retirement date you may consider leaving the salary sacrifice scheme. 2008 NHS PENSION SCHEME

CURRENT ARRANGEMENTS If you are a member of the 2008 NHS Pension Scheme your pension benefits are based on an average of the best three consecutive years in the last 10. WHAT IMPACT WILL THIS HAVE ON MY PENSION UNDER THE PROPOSED PENSION SCHEME BEING INTRODUCED IN 2015?     The new NHS Pension Scheme will be introduced from April 2015 It is a career average scheme rather than a final salary scheme You accrue pensionable earnings for every year you participate in the NHS Pension Scheme Your pension will accumulate in 1/54ths of your pensionable earnings. Further information on the New NHS Pension Scheme can be found on NHS Employers Website. STATE PENSION The State Pension is a contribution-based benefit and the Additional State Pension is an earnings-related benefit and as such one or both of these could be affected by joining the Scheme. The State Second Pension forms part of the State Pension. Salary Sacrifice can affect the State Second Pension as the value is

calculated based on your annual pay after sacrifice. Further information on the State pension can be found on the UK Government website. Please note this booklet is a guide only and provides information about the scheme. It is not the terms and conditions of the scheme or the scheme rule book. Employees should always seek independent advice if unsure about the suitability of the scheme to them. SCHEME BENEFITS: Opportunity of leasing a brand new car No deposit or credit check Significant cost savings over providing a private car Access to public sector discounts Flexible periods of hire Option to purchase at the end of the contract ALL VEHICLES INCLUDE: Fully Comprehensive Insurance Mechanical and electrical repairs Routine Servicing Replacement tyres, exhaust, glass, excise duty Breakdown and Recovery Service Accident Management Courtesy car - Accident Repairs Knowles Associates Total Fleet Management Red Lion House The Green Great Bentley Colchester Essex CO7 8QG Tel: 01206

255420 Fax: 01206 252211 www.knowlesfleet.com quotes@knowlesfleet.com Office hours Mon-Fri 8am - 6pm Sat 9am - 12pm

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