This is a new page. Your feedback will help us improve it.

Car salary sacrifice scheme

If you would like a brand new, fully insured and maintained car, then you may be able to take advantage of our car salary sacrifice scheme.

As you are sacrificing gross salary, you can save between 32 and 47 per cent in Income Tax and National Insurance.

The scheme is run in partnership with Tusker Direct Limited who are market leaders for car salary sacrifice schemes to large corporate and public sector organisations in the UK. They work with hundreds of organisations including the NHS, Airbus and HSS Hire.

About the scheme

Who can apply

You can join this scheme if you:

  • are aged 17 or over
  • have a permanent contract of employment with the council
  • are on a temporary or fixed term contract that is longer than the duration of the agreement
  • receive more than the national minimum wage, after the salary sacrifice has been taken off your gross salary
  • are not part of the lease car or assisted lease car scheme
  • are a non-teaching member of staff in maintained schools subject to the approval of the head teacher (teaching staff and all school staff for academies are not able to access the scheme).

If you are a new employee, you can request to transfer an existing salary sacrifice car when you start your role with us. If the council agree to your request, you will be liable for the early termination fee if you do not pass your probationary period.

How the scheme works

The scheme lasts for 3 years with a fixed amount coming out of your salary each month. No deposit is required. Each car comes complete with:

  • fully comprehensive insurance
  • servicing
  • maintenance and repairs including batteries, exhausts and tyres
  • road tax
  • breakdown assistance.

All you need to get driving is fuel or electricity and to keep your car's fluids topped up.

There are a wide range of makes and models of car to choose from including electric and hybrid vehicles to meet your needs. Prices vary depending on the type of car you choose. The Tusker team can help you choose the best car for your needs if you're not sure what you want.

You'll also benefit from savings made in relation to reduced tax and National Insurance contributions. This will be different for each type of car.

What you need to consider

Local Government Pension Scheme (LGPS) - East Riding Pension Fund

You will need to consider the impact on your future pension if you contribute to the East Riding Pension Fund. Neither you or the council pay pension contributions on the money you sacrifice in exchange for the benefit of a car so your pension benefits will be affected. The effect will be different for everyone and depend on your own circumstances.

Pension benefits accrued before 31 March 2014

Your pension will be based on your final salary in your final year of work. So, if your salary has been reduced by a car salary sacrifice in your final year, your pension benefits will be less.

Pension benefits accrued after 31 March 2014

In April 2014 pension benefits were changed and are now based on a career average. Each year you put 1/49th of your salary into your pension fund. Your career average pension benefits are a total of the fund you build up, plus inflation. If you sacrifice your salary, you will put less in to your fund for the years you do this and the overall benefits you draw will be less.

Calculating the effect on your pension

You can calculate the effect on your own personal circumstances using the calculation below.

Annual salary sacrificed/49 = Annual reduction in pension x Number of years of the sacrifice

Example

If you were sacrificing £3,600 of your salary per year for the car.

£3,600/49 = £73 per year less x 3 (minimum years a scheme can be taken out for) = £219 per year less in pension benefits.

The £219 reduction is for every year you draw your pension.

If you require more information about how a salary sacrifice might affect your LGPS pension benefits, email the East Riding Pension Fund or call 01482 394158.

State pension

If you are entitled to a state pension, provided you pay the minimum requirement for National Insurance contributions this scheme shouldn't affect you. However, if you have a second state pension it may have a small effect on this.

Benefit in Kind (BiK)

As we are providing a car as a benefit to you, this is classed as a Benefit in Kind by HMRC and therefore you need to pay company car tax as it is available for private use. This will be calculated and included within any quote you receive from Tusker and is deducted from your salary by a change in your tax code.

Visit the Tusker FAQs page and check the company car tax questions to find out more

Student loan

Student loan repayments are calculated on your earnings. If you pay back an amount of your student loan each month this will reduce for the duration of the agreement and therefore your repayment period may increase.

How to apply

Step 1 - Create an account

You can buy directly through the Tusker website.

You'll need to create an account using:

  • your work email address
  • ERYC as our company code
  • your payroll number (this can be found on your payslip)
  • a password.
Step 2 - Find a car and get a quote

Browse the Tusker website for a car you'd like and receive a quote based on any customisations you'd like, length of agreement and expected mileage.

Step 3 - Order your car

Tusker will confirm approval of your order with the relevant details. They will send you a hire agreement for you to sign online.

The council will also approve the document and confirm you:

  • are hiring the car from them for the duration of the agreement
  • meet the criteria for the scheme.

If you are a non-teaching school employee, your headteacher will also need to approve the agreement.

Step 4 - Delivery

Your chosen car will be built to your requirements and delivered to your local dealer. The dealer will get in touch with you to arrange delivery.

Step 5 - Payment

Your first payment will be taken from your salary the month after you signed the hire agreement.

Have questions?

Here are some ways you may be able to find the answer:

FAQs

Apply and order

I am only commuting some days due to changes in working patterns, can I still place an order?

Yes. When generating a quote, you will add your expected mileage. So, if you are not commuting to work every day you can adjust your mileage count and therefore the price you pay will be lower.

Can I amend my order once I have placed it?

There is no guarantee you will be able to amend it. Tusker will do their best to accommodate any changes, but you will be liable for any extra costs. You need to contact Tusker on 0333 400 2020 as soon as possible.

How long will my car take to arrive?

On average vehicles are taking around 12 weeks from approval to be delivered. When you order your car, you will be given an estimated delivery time as this can differ slightly depending on the manufacturer and model you have chosen.

Can I apply to the Tusker car salary sacrifice scheme more than once?

Yes, if you are still eligible for the scheme and you have completed your previous hire agreement with the council.

Hire agreement

What happens if I no longer want the car?

When you sign the agreement, you are committing to a term of 3 years. You can request an early termination quote at any time, but you are responsible for paying the whole charge. The calculated charge considers:

  • the sum of the monthly payments you have left
  • any discount deducted for early termination
  • the original estimated value of the vehicle at the end of the scheme
  • the value of the vehicle at the time of termination.
What happens if I leave the council before the end of the hire agreement?

You will be liable for an early termination charge to leave the scheme if you:

  • notify the council you are leaving during the first 6 months of your agreement (from the delivery date of your vehicle)
  • leave within the first 6 months without giving prior notice.

Please note: it is your leaving date that is used to work out if there will be an early termination charge and not the date you notify the council.

If you leave after the 6 months after your agreement starts (from the delivery date of your vehicle), we have an arrangement with Tusker to cover the early termination charge.

What happens at the end of the hire agreement?

Tusker will contact you 6 months before the end of your agreement and offer you 3 options.

Option 1 - Upgrade to a new car

If you'd like to upgrade to a new car, you can sign up to another agreement following the same process you did the first time. Tusker will pick up the old car when they deliver your new one.

Option 2 - Buy the car

You can request a price to purchase the vehicle. This will be at the market value of the car based on its age and mileage. Tusker will only be able to provide an accurate purchase price at the end of your agreement.

Option 3 - Return the car

Tusker will make arrangements to collect the car at the end of the hire agreement.

What happens at the end of the agreement if I am over the agreed mileage?

You have the option to increase the mileage after the first year. If you are over the agreed limit at the end of the agreement Tusker will charge the council an excess mileage cost for each mile you are over, as detailed in the vehicle quote. The council will recharge this cost to you.

What mileage rate will I receive if I do any business miles?

Your mileage rate will match the council's mileage rate of 45p per mile. However, as the car is classed as a company car for tax purposes, you will pay tax and National Insurance on the amount above HMRC's advisory rate for company cars.

Visit the GOV.UK - advisory fuel rates page

Contact

I would like to speak to someone about the scheme, who can I contact?

You can call Tusker on 0333 400 2020 to learn more about the scheme and the cars available to you.

I have an issue with my car, who do I contact?

You can contact Tusker on 0333 400 2020 to report a breakdown, arrange a service or speak to one of the customer services team.

.

Share your views

Whether you like this new page or there's something not quite right - please let us know!