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Frequently asked questions
1. Why is salary exchange being introduced for car parking?
The University Travel Plan 2007–2017 (published in January 2007) sets out a series of initiatives aimed at promoting greener, cleaner travel choices. One specific objective of the Travel Plan is to raise the cost of car parking towards the true value of car parking provision. Salary exchange enables part of the increased cost to be offset by savings in tax and national insurance. By agreeing to obtain a permit, staff also agree that their gross salary will be reduced by the appropriate amount, enabling employees to save on both tax and national insurance and the University to save employer’s national insurance.
2. I’m in the NHS Pension Scheme, why can’t I participate?
The administrators of the NHS Pension scheme have not agreed that an employee’s ‘notional gross salary’ can be used to calculate pension benefits and so employees in the NHS Pension Scheme would therefore be disadvantaged by exchanging salary for car parking. You are, however, still able to pay for your permit by monthly salary deductions and will only be charged the net cost.
3. I earn £6,500 per annum. Why can’t I participate in Salary Exchange?
Because of technical issues arising from the HMRC rules around the lower earnings threshold for National Insurance Contributions, staff earning less than £6,500 may be disadvantaged by ‘Salary Exchange’ arrangements. You are, however, still able to pay for your permit by monthly salary deductions and will only be charged the net cost per annum.
4. I work part time, which is the best option?
Depending on how many days each week and how many weeks a year you work, it may be more cost effective for you to request a staff ‘authority to park’ badge – at no charge - giving you the right to park your vehicle on campus for the reduced pay-and-display rate of £1 per day. For example, if you work for 2 days a week all year (ie approximately 44 weeks of attendance after allowing for holidays) and your salary falls within the Lower or Middle Band, paying for your daily parking would cost you £88 as opposed to £90 or £52 net cost under salary sacrifice (Middle/Lower Band). You will need to calculate the most cost effective choice for you as an individual.
5. My contract is ending, how does salary sacrifice affect me?
You are still able to obtain a car park permit through salary exchange as salary deductions are made on a monthly basis. You will automatically be removed from the scheme on your last day of employment. Payments will cease once your permit and opt out form has been returned to Campus Serives at Streatham Farm Reception. Non university staff will be reimbursed for any fully unused months via the payment method originally used.
The withdrawal form can be found here.
6. I’m expecting a baby
If you will be paid University Maternity Pay (UMP) during your maternity leave, then no action is required. The deductions from your pay for car parking will be suspended in the month you begin your maternity leave. They will be recommenced in the month you return to work. If at that point you no longer need a car park permit or you have changed your vehicle, it is your responsibility to notify the Campus Services Help Desk, who will then notify the Pay and Benefits Team in Human Resources to amend the deductions to your pay. You are advised to do this at the earliest opportunity so that incorrect deductions are not made from your pay.
However, if you will be receiving SMP only during your maternity leave (either because you are not entitled to UMP or because you have elected to defer payment of UMP until you return to work) we advise you to withdraw from any salary sacrifice arrangements 23 weeks before your baby is due. This is because the higher rate of SMP is calculated on salary on which NI is payable, so your SMP for the first six weeks will be reduced if you are partaking in any salary exchange schemes. You will need to opt out of the scheme under the ‘notification of pregnancy’ Lifestyle Change, and you will then be transferred to monthly deductions at the net rate. No deductions will be made while you are on the standard rate of SMP or nil pay.
The withdrawal form can be found here.
7. I don’t normally attend the campus during the long vacation
Under HMRC rules, you are not able to start and stop a salary sacrifice arrangement except for a “life changing event”. Not coming into the campus during the long vacation would not apply. You will therefore be deducted for your permit over the full 12 months.
8. I have more than one car – how will this affect me?
You are able to obtain a staff parking permit for one car through salary exchange. This permit will be for a single vehicle and the registration number will be printed on the permit. It will not be transferable to other vehicles. For your other car you will need to apply for an additional staff ‘authority to park’ badge (which is free of charge) and you will need to pay the reduced pay-and-display rate of £1 per day when you bring this car onto campus.
9. What happens if I change my car?
If you return your old permit to Campus Services Reception (Streatham Farm) with information about your new vehicle then a new permit will be issued to you at no charge.
10. I am over state retirement age, so I do not pay National Insurance Contributions. How does this affect my ability to participate in Car Parking by Salary Exchange?
If you do not pay National Insurance Contributions because you are over state retirement age – 60-65 for women and 65 for men – you will be able to obtain a staff parking permit at the net rate.
11. Does when my car was registered make a difference to the cost of my permit?
We gave staff notice in 2008 that car parking charges would be entirely based on vehicle carbon emissions by 2010. This is part of the University’s Travel Plan to encourage ‘greener’ transport. By giving two years’ notice, staff who were considering changing their vehicle were able to take into account the car parking charges (and the Government’s proposals for Vehicle Excise Duty) in making their choice.
| Band | Criteria | Salary to be exchanged for staff in grades A to G (or earning up to £50,000 gross) | Salary to be exchanged for staff in grades H and above (or earning over £50,000 gross) | Approx. net charge (after the application of Salary Exchange) |
|---|---|---|---|---|
| Top | emissions of 140 and over grams of CO2 per kilometre (or engine size over 1549cc if the vehicle was registered prior to March 2001) | £230 | £275 | £160 |
| Middle | emissions between 121 and 139 grams per kilometre (or engine size up to 1549cc if the vehicle was registered prior to March 2001) | £145 | £173 | £100 |
| Lower | emissions of up to and including 120 grams per kilometre | £79 | £95 | £55 |
To check your vehicles emissions please see DVLA link:
12. What should I do with my permit(s) when I leave?
You will automatically be removed from the scheme on your last day of employment. Payments will cease once your permit and opt out form has been returned to Streatham Farm Reception. Non university staff will be reimbursed for any fully unused months via the payment method originally used.
The withdrawal form can be found here.
