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NEWPORT’S CITY COUNCIL’S CAR BENEFIT SCHEME – QUICK GUIDE
If you’re interested in driving a brand new car but don’t have the deposit, maybe a lease car
could be the solution. To help you decide, here is a quick guide to get you started.
What is the Scheme all about?
An opportunity for employees to lease a brand new car for a set monthly fee. There is no deposit
or credit check. You agree to exchange some of your salary for a new car through “salary
sacrifice”.
What is salary sacrifice?
A salary sacrifice happens when an employee gives up the right to receive part of the cash pay
due under his or her contract of employment in return for the employer’s agreement to provide
the employee with some form of non-cash benefit, in this case, a new car.
Why are we doing it?
Whenever possible it is our intention to develop the benefits available to staff to help you save
money on everyday costs.
Who is supporting the scheme?
We have joined up with Tusker who are the UK’s leading car benefit company. Tusker are on the
NPS framework and supply cars to the public sector throughout the UK.
What is a car benefit scheme?
A car benefit scheme is a lease arrangement (not purchase). The car will be on lease for a period
upto 4 years. You do not own the car. At the end of the lease period, you hand the car back.
What’s included?
For a monthly fee, you will be able to have a new car with fully comprehensive insurance cover
(including business use), roadside assistance, car tax, servicing and maintenance.
How much does it cost?
This will depend on the car you choose, the number of miles you drive every year and the
number of drivers you wish to put on your insurance policy. Typically, a basic model car will start
at approx.. £190 per month. You can get a quote from the Tusker website (see later).
Are there any restrictions on the type of car I can choose?
Yes, cars are capped with carbon emissions of less than 120g/km to ensure that we run a green
scheme. However, there are over 2,000 cars available that have a CO2 limit of 120g/km or
below, so there is plenty of choice.
Am I eligible?
You will be eligible for the car salary sacrifice scheme if you meet the following criteria:
You hold a substantive post with a contract that exceeds the duration of the lease
You have completed your probationary period
You have an hourly rate above the National Living Wage after all salary sacrifice and
other deductions have been made
You are not at risk of redundancy
You are not at risk of dismissal
You are not in scope for a TUPE transfer
Unfortunately councillors and teachers are not eligible to join the scheme.
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Do I have to earn a certain amount to qualify?
Yes, to participate in a salary sacrifice scheme (as per HMRC regulations) your hourly rate of pay
must not go below the national minimum wage (NMW). The NMW is currently £7.50 per hour
(plus 10% for any in year increase).This takes the current NMW threshold for a car benefit salary
sacrifice scheme to £8.25. Don’t be surprised if your hourly rate means that you will not have
sufficient earnings to keep you above the NMW and will, therefore, be unable to participate in the
car benefit scheme. Most employees on scp 18 or below are unlikely to qualify.
Can part-timers participate in the scheme?
Yes, part-time staff can participate in the scheme but part-time earnings will limit the choice of
car that an employee can afford. However, the principles of remaining over the NMW threshold
still apply.
Is this scheme only for staff who undertake official mileage on behalf of their job?
No. This is a car for you and your family to use. Whether you do any miles or not for your job you
can still apply for a salary sacrifice car.
Is there an impact on my pay?
Yes, salary sacrifice will save you some money on your national insurance contributions.
However, in some cases, there could be a slight increase in your tax as leasing a car is like
having a “company car” and there will be a benefit in kind. The Benefit in Kind tax will be
payable on a monthly basis, through your tax code and will be dependent upon:
the car’s P11d value (i.e. list price including any accessories, delivery and number plates)
the car’s CO2 emissions
the type of fuel that the car uses
Will it affect my pension?
Yes, by using some of your salary to lease a car, your pensionable pay will be reduced. Less
pay means less contributions to your pension pot.
Will it affect my travel and subsistence claims?
Yes, under HMRC regulations, your lease car will be considered a “company vehicle and subject
to reduced mileage rates.
What happens at the end of the lease period?
You simply hand the car back. You have the option to purchase the car for fair market value or
you could take out another lease.
What happens if I leave the Council during the lease period?
In most cases, you simply hand back the car. However, there could be termination charges for
excess mileage and any damage to the vehicle which you will be required to pay.
What happens if I decide I don't want the vehicle any longer?
You are committing to the term of the scheme. If you do decide you no longer want the vehicle
you can obtain an early termination quotation at any time but you will be responsible for the cost
which will be taken out of your salary.
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If I’m interested, what should I do?
You can find all about the scheme by visiting our rewards hub.
Be sensible. Car leasing is a great way to get a new car but it is important you have a thorough
knowledge of the scheme and how it works so please read through the scheme policy and FAQs
carefully. If you order a vehicle, you must also read through the salary sacrifice agreement which
is generated once you have requested your vehicle choice and you will be asked to sign to show
you have read the document and understood the scheme.
Who should I contact if I have any more questions about the scheme?
You can email payroll@newport.gov.uk with any queries around your salary and scheme
provisions. You should contact the Tusker Helpline on for queries about car choice.
