Loughborough University
Leicestershire, UK
LE11 3TU
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Loughborough University

Sustainability

Car parking salary sacrifice changes

In April 2018 the Government will change some of the salary sacrifice arrangements currently available to employees in the UK. Salary sacrifice is when you exchange part of your salary, on which you would pay tax and National Insurance contributions, for a benefit, thereby saving you money.

CarParkingMax is one of the salary sacrifice schemes that the University currently operates that will be impacted by the changes being introduced by the Government.

When the salary sacrifice scheme is withdrawn in April, the car parking charges will be taken from your ‘after tax’ income so the cost to you will be higher. However, to mitigate the impact on staff the University has decided to subsidise 50% of the increased costs for one year – from April 2018 to March 2019.

Car parking charges for 2018-19

The price you pay for your car parking permit depends on three things:

• your job grade
• your car’s CO2 emissions, and
• whether you are paying through the CarParkingMax scheme.

The charges below are for April 2018 to March 2019.

If you currently pay through CarParkingMax, it shows what you will pay when the Government withdraws the salary sacrifice scheme in April 2018 and the University’s 50% subsidy comes into effect.

If you pay for your parking through the CarParkingMax scheme and your circumstances alter at any point up to 5th April 2018 – ie your job grade changes or you get a different car – you will no longer be able to be part of the CarParkingMax scheme and you will have to pay the standard price for your permit until the subsidy begins.

The standard permit price will remain the same in 2019-2020.

How much will a permit cost?

Grades 1 to 3

CO2 emissions Current price through CarParkingMAx 50% subsidy price (for April 2018 to March 2019) Standard permit price
 Less than
100
 No Charge No Charge
 100-120  £61.04      £74.52 £88
 121-140  £61.04      £74.52 £88
 141-165  £61.04      £74.52 £88
 166-185   £61.04      £74.52 £88
 186-225  £61.04      £74.52 £88
 Over 226  £61.04      £74.52 £88

Grades 4 to 6

CO2 emissions Current price through CarParkingMax 50% subsidy price (for April 2018 to March 2019) Standard permit price
 Less than 
100
 No Charge No Charge
 100-120 £85.19       £103.60 £122
 121-140 £113.59       £138.30 £163
 141-165 £177.48       £216.24 £255
 166-185  £212.98       £259.49 £306
 186-225 £248.47       £302.74 £357
 Over 226 £283.97       £345.99 £408

Grade 7 

CO2 emissions Current price through CarParkingMax 50% subsidy price (for April 2018 to March 2019) Standard permit price
 Less than 
100
 No Charge No Charge
 100-120 £102.31       £124.66 £147
 121-140 £136.30       £166.15 £196
 141-165 £212.98       £259.49 £306
 166-185  £255.57       £311.29 £367
 186-225 £298.17       £363.09 £428
 Over 226 £354.96        £432.48 £510

Grade 8+

CO2 emissions Current price through CarParkingMax 50% subsidy price (for April 2018 to March 2019) Standard permit price 
 Less than 
100
 No Charge No Charge
 100-120 £103.53        £141.27 £179
 121-140 £137.25        £187.13 £237
 141-165 £212.98        £289.99 £367
 166-185  £258.10        £349.55 £441
 186-225 £301.60        £410.80 £520
 Over 226 £354.96        £483.48 £612

Will all the salary sacrifice schemes offered through the University be affected by the Government changes?

No. The CarParkingMax and gym membership schemes will be, but the pension, childcare and cycle to work schemes will not.

 

 

When do the changes come into effect?

From 5th April 2018.

How do I know if I’m paying for car parking through salary sacrifice?

You can see from your payslip. On the left-hand side, under the ‘Payments’ column, you will see your basic gross salary and any salary sacrifice payments you are making.

 

I pay for my car parking through salary sacrifice – how will the changes affect me?

When the Government withdraws the salary sacrifice scheme from April, you will pay the 50% subsidised rate for one year.

I pay for parking through CarParkingMax and I’m getting a new car in March 2018. Will I still be able to pay for my parking through the salary sacrifice scheme?

No. If your circumstances alter at any point up to 5th April 2018 – ie your job grade changes or you get a different car – you will no longer be able to be part of the CarParkingMax scheme and you will have to pay the standard price for your permit until the subsidy starts.

Will I still be able to benefit from the 50% subsidy once I have my new car?

Yes, all staff annual permits will be subject to the 50% subsidy.

Do I need to do anything to ensure that I move on to the 50% subsidised rate from 5th April?

No, it will happen automatically.

I don’t currently pay for my car parking through salary sacrifice but I would like to. Can I sign up now?

No, you can’t opt in to the scheme now.

I don’t pay for car parking through salary sacrifice, so will the changes affect me?

No, you will not be affected by the withdrawal of the CarParkingMax scheme. However, if you have an annual staff permit you will benefit from the 50% subsidised permit rate for one year from April 2018 to March 2019.

How can I apply for a car parking permit?

You will need to do it through the University’s ParkIt website.

How do I amend my details on the car parking system?

You can do it through the University’s ParkIt website.

Where can I find out more about the Government’s planned changes to salary sacrifice schemes?

Further information is available on the Government website.

 

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