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Salary Sacrifice

Falmouth University, Falmouth Exeter Plus and University of Exeter employees who receive a monthly salary are eligible to apply for a car parking permit through the Salary Sacrifice scheme.

University of Exeter staff

Full details of the Salary Sacrifice Scheme and Frequently Asked Questions are available on The University of Exeter website.

If you choose to apply for car parking through The University of Exeter salary sacrifice scheme, please ensure you have read and agree to the changes to your terms and conditions of employment.

Falmouth University and Falmouth Exeter Plus staff - Salary Sacrifice Scheme Conditions

Please note this does not contain information on the car parking policies (Penryn and Falmouth Campus Car Parking Policies). This can be obtained from the car parking policy documents which are located on the Parking on Campus and Falmouth Campus Car Parking Policy pages.

Introduction

Falmouth University and Falmouth Exeter Plus have made some changes to its charging scheme for parking on all campuses.

Please read this content carefully as it contains important information relating to the operation of the Salary Sacrifice scheme which we have introduced. If you decide to participate in the scheme, you will be confirming you have read and understood the scheme rules and agree to be bound by them for the duration of the scheme.

To view the Frequently Asked Questions (FAQs), please scroll to the bottom of this page.

Salary Sacrifice overview

Salary Sacrifice means an employee formally agrees to give up part of their pay and receives some form of non-cash benefit of a similar value. The Salary Sacrifice varies employment terms and conditions and gross pay is reduced by the agreed amount.

Participants in the scheme will receive an annual car parking permit.

The Salary Sacrifice (an amount equal to the value of the parking permit) will be deducted from gross pay before tax and National Insurance is deducted. As the sacrifice reduces your gross pay, you therefore pay less tax and NI, so you will effectively pay less for your parking than if you paid the full amount without using Salary Sacrifice.

Due to the individual nature of the effects of a Salary Sacrifice scheme we are unable to provide specific examples or guidance on the effects of the scheme. Nominally staff may expect to receive a saving of between 25% and 50% depending upon personal tax situations.

Eligibility

Falmouth University and Falmouth Exeter Plus employees who receive a monthly salary are eligible to apply for a car parking permit through the Salary Sacrifice scheme.

Car parking permit charges

The permit cost will be deducted, pro-rata, from your gross pay. Your gross pay is your contractual monthly salary, including market supplements and shift allowances.

Pension implications

Salary Sacrifice schemes may be used by someone in any of the pension schemes at Falmouth University and Falmouth Exeter Plus. Staff in the Local Government Pension Scheme (LGPS) and Universities Superannuation Scheme (USS) will have their pension contributions calculated on their pre-sacrifice pay whereas those in the Teachers’ Pensions Scheme (TPS) will have theirs based on post sacrificed pay, i.e. after the money for car parking charges has been deducted.

So for those in the LGPS and USS schemes, this benefit is treated as pensionable pay and their pension contributions, and hence pension entitlements, will not be affected by entering these arrangements.

For those in the TPS scheme, this benefit is not treated as pensionable pay. Therefore while you will be able to benefit from the Salary Sacrifice scheme you may have slightly reduced pension contributions and entitlements. For further information on how this may affect you personally please contact the TPS direct.

National Insurance contributions, tax and tax credits

Entering into a Salary Sacrifice arrangement means that your gross pay is reduced by an agreed amount in exchange for the car park permit. It is important that you are aware that this may have an effect on the following;

  • entitlement to Working Tax Credit or Child Tax Credit
  • entitlement to state pension or other statutory benefits such as maternity pay, paternity pay or adoption pay
  • any other benefits which depend either on actual income or national insurance contributions

More information on the implications of entering into a Salary Sacrifice scheme can be found on the HMRC website or by seeking personal tax advice.

How to join

To apply for a car parking permit through Salary Sacrifice, please use the online application form available via https://carparking.fxplus.ac.uk/SignIn.aspx.

Withdrawing from the scheme

Withdrawal from the scheme will only be available on an annual basis or in the event of a lifestyle event (see FAQs for the definition of a lifestyle event). You will be given an opportunity to reapply to rejoin this arrangement for the following 12 months in August each year.

Please contact Payroll Services for more information (01326 255815 or payrollservices@falmouth.ac.uk).

Ending employment

The Salary Sacrifice arrangement to pay for an annual permit will automatically cease in the month you leave employment.

Car parking questions

Any queries specifically related to Salary Sacrifice can be directed to Payroll Services (01326 255815 or payrollservices@falmouth.ac.uk).

If you have any questions specific to the car parking policy or about the online application form, please contact: carparking@fxplus.ac.uk.

 

Salary Sacrifice FAQs
Under current rules, you are not able to start and stop a salary sacrifice arrangement except on an annual basis in August or due to a lifestyle event (definitions defined in the FAQ below). Deductions will therefore take place over the full 12 months. If you do not stop your permit due to a life changing event you will be given an opportunity to rejoin the salary sacrifice arrangement for the following 12 months in August each year.

You will be able to opt out of the new arrangements on an annual basis in August each year.

You also have the option to review your participation in Salary Sacrifice on the event of certain fundamental lifestyle changes. A lifestyle event is an unforeseen event that will impact on your lifestyle. Examples might include marriage, divorce, birth/adoption of a child, death of a family member, moving house or a significant change in salary/hours worked and so on. If you wish to review your participation in Salary Sacrifice please contact Payroll Services (01326 255815 or payrollservices@falmouth.ac.uk) who will provide you with the necessary information.

We are committed to the arrangement. However, if for some unforeseen reason we are no longer able to offer it, we have the right to revert to the current system and tax and NI savings will cease.

In order for Salary Sacrifice to work you will need to agree to a reduction in your salary. You will agree to the amount by which your salary is reduced by agreeing the level of your required car parking permit.

All other terms and conditions of your employment remain unchanged.

 

No. Any future pay increases will be calculated using your notional salary and are therefore based on salary before the reduction is applied.
No. Your overtime rate and any salary related payments (e.g. occupational sick pay, paternity pay, adoption pay and maternity pay) will not be affected as they will be based on your salary before the salary sacrifice adjustment.

If you are paid statutory maternity pay (SMP) only then the salary sacrifice will not continue as statutory payments cannot be sacrificed. However the benefit of car parking will continue to be provided during this period.

If you are paid enhanced maternity pay then salary sacrifice will continue and the benefit of car parking will continue to be provided during this period. The amount sacrificed will not take you below the statutory payment that is due.

Alternatively, you may choose to give up your car park access permit due to a lifestyle change when you start your maternity or adoption leave and the salary reduction will then cease immediately. On your return to work, you may apply for a new car parking permit in the normal way although you will not be able to rejoin the salary sacrifice scheme until the commencement of the new application year.

If you are paid statutory sick pay (SSP) only then the salary sacrifice will not continue as statutory payments cannot be sacrificed. However the benefit of car parking will continue to be provided during this period.

If you are paid enhanced sick pay then salary sacrifice will continue and the benefit of car parking will continue to be provided during this period. The amount sacrificed will not take you below the statutory payment that is due.

If you are paid statutory paternity pay (SPP) only then the salary sacrifice will not continue as statutory payments cannot be sacrificed. However the benefit of car parking will continue to be provided during this period.

If you are paid enhanced paternity pay then salary sacrifice will continue and the benefit of car parking will continue to be provided during this period. The amount sacrificed will not take you below the statutory payment that is due.

If you are on unpaid leave, you will have no salary from which the salary sacrifice can be taken.

Your Salary Sacrifice and car parking benefit will cease during the period of unpaid leave and will recommence when your salary returns to a level at which the salary reduction can resume.

Student loan deductions are made when you receive pay in excess of £21,000 per annum. Where you participate in Salary Sacrifice your gross pay will be reduced, meaning any student loan deductions processed through monthly payroll are likely to decrease. This will affect the amount of time it may take to pay back your loan.
Your notional salary (i.e. salary before the reduction for Salary Sacrifice) will continue to be shown on all of your payslips each week/month. Most lenders are aware of the concept of Salary Sacrifice and many have implemented these arrangements. If required however, we will explain Salary Sacrifice in a separate letter to the lender in support of any new mortgage and loan applications.
You may not reduce your pay below the NMW. We will contact you separately if you may be at risk of sacrificing pay below NMW rates.
It is recommended that personal advice is sought in relation to the impact on tax credits and AEOs.
Under current rules, employees will only lose entitlement to basic state pension if they earn less than the Lower Earnings Limit (LEL) (£112 per week for 2015/16). If this is the case, you will not be invited to join Salary Sacrifice to ensure that your basic state pension entitlement is unaffected.
If you have any questions that are not covered in this fact sheet, please contact Payroll Services (01326 255815 or payrollservices@falmouth.ac.uk).
You may wish to seek independent financial advice on how the changes impact your personal position. We will not pay for any advice that you take which is charged for.
Entitlement to state benefits is a very complex area. If you currently claim any state benefits you should contact the relevant government agency for advice as to how Salary Sacrifice may affect your entitlement to these benefits. Further guidance can be found at www.hmrc.gov.uk or www.dwp.gov.uk.
We are unable to provide financial advice in relation to your future state pension entitlement and, if you would like to discuss this further you should contact your Financial Adviser or visit www.thepensionservice.gov.uk to obtain contact details for your local Pensions Office.