The introduction of the NWSSP Lease Car scheme was support to those individuals required to drive as part of their role. Therefore, if you have Business Mileage of 1000 miles or more per year, then the NWSSP Lease Car scheme would be more advantageous over the NWSSP Salary Sacrifice Scheme. This is because with the Lease Car scheme, all business miles are paid by the Health Board/ Trust, whereas the NWSSP Salary Sacrifice scheme, all miles completed are classed as personal and the driver is fully accountable for any costs.
NHS Lease Car Scheme
- The NHS Lease Car scheme is available to all permanent staff within the Health Board travelling in excess of 1,000 business miles.
- NHS Lease Car cost is broken down, so there’s no hidden cost.
- Car’s are priced via Car GPS framework , cheapest price is always passed to the driver.
- HMRC Company Car rates are reimbursed so therefore – no tax to pay on mileage payment received.
- Term of NHS Lease Car contract is 3 years.
- Service, Maintenance, Breakdown road side assistance, Insurance, mechanical relief vehicle, Tax and MOT are all included.
- The NHS Lease Car team are always on hand to answer any questions.
- Change of base during 3 year contract – any additional mileage will be picked up by Health Board as notional mileage which will be included as business mileage and not private as there would be a tax implication to the employee if claiming excess.
- Having a NHS Lease Car doesn’t have any impact of your Pension.
Personal Salary Sacrifice Car Scheme
- Car’s quoted on salary sacrifice lease tend to be more expensive.
- Contributions towards Pension are being reduced by having a Salary Sacrifice car so future pension implications will apply.
- If you are doing business mileage on behalf of the health board you will be giving up part of your pay and pension to subsidise Health Board for doing this business mileage.
- There are additional taxes applied on mileage as the salary sacrifice scheme pays at 0.45p which is above the approved HMRC company rates, the difference between the 0.45p private vehicle rates and HMRC Advisory fuel rates for company car’s will be TAXED.
- Change of Base due to reorganisation change may result in additional mileage being incurred; this may NOT be paid by HB as excess travel as this will incur additional fuel scale charges as any excess mileage paid is treated the same way as a company lease car therefore additional taxes will apply.
- If change of base is during the duration of the salary sacrifice car contract the HB will not recognise any excess due because of the fuel scale charges or it will not count as notional mileage as this scheme is a personal choice, therefore there could be additional charges.