Falkirk Council has signed up with SG Fleet to offer employees access to Novalease - The Green Vehicle Scheme.
Novalease is a Personal Contract Hire based vehicle scheme which also allows you to lease an ultra-low emission vehicle (ULEV) in exchange for a reduction in gross salary while you work for Falkirk Council.
The vehicle will attract company vehicle tax (Benefit in Kind Tax).
When you choose this benefit, you'll need to agree to the terms of a Personal Contract Hire agreement including a credit check, and if you leave Falkirk Council during the term of the lease you will take the vehicle with you and the remaining payments shall be taken via Direct Debit.
How the scheme works
As electric vehicles have zero CO2 emissions they benefit from lower Benefit in Kind Tax rates, which means you get to keep more of the Income Tax and National Insurance savings. They are also better for the environment.
You can choose any lease term from 24 to 48 months and a mileage budget to suit your needs.
You can search for ultra-low emission vehicles by make, model, body style etc on SG Fleets platform and you can also obtain a tailored quote based on your term and mileage requirements.
Costs shown on your quote will include:
- Servicing and full maintenance
- Tyres
- Consumables (ie brake pads/discs, wiper blades, oil, bulbs)
- Roadside assistance
- When novated, preferential contract terms are included to assist you in instances of maternity, paternity, and long-term sick.
You can also add:
- Fully comprehensive insurance (fixed for the duration of your term) with Accident management
There is no contribution to this benefit from Falkirk Council.
Some items are not included in the lease such as electric charging, fines, road & bridge tolls, and Congestion Charging. Also, things like maintenance due to driver behaviour, excess mileage, vehicle/tyre damages and driving induced faults will be recharged directly to you by SG Fleet and not through Falkirk Council.
SG Fleet are currently unable to provide a home charging solution and it is recommended that you obtain one independently prior to accepting delivery of your new vehicle.
How to access the SG Fleet platform
Please visit the SG Fleet Motorchoice website for full details including range of models available, personalised quotes and frequently asked questions.
- Go to - https://motorchoice.sgfleet.com/register/c/636022
- Complete your details in the register section on the right-hand side
- If prompted, enter your unique referral code – 636022
- Select the register button to submit your details
- A verification email will be sent to your inputted email address
- Follow the links in the email to complete the registration process
- Use your new details to sign in
If you have any questions in regards to accessing the website, contact the consumer team on 0344 85 45 161 or consumer@sgfleet.com.
Things to note
Once you have accepted the quotation for a vehicle, you will complete a short credit application. On acceptance, SG Fleet will approach Falkirk Council for approval for the novation agreement to take place, this includes a check to ensure the deduction will not take you below the National Living Wage.
Once approved, SG Fleet will send you the lease agreements via email for an electronic signature and once they receive the signed copy back, your vehicle will then be ordered. At this point, SG Fleet will advise you of the expected delivery date.
Remember your benefit choice will not become effective until the month after the vehicle has been delivered, as well as your payroll deductions.
You can choose this benefit at any time throughout the year.
What you need to do
- You choose an ultra-low emission vehicle and obtain your personalised quote on the provider's website.
- You can also obtain a quote and find out more information by speaking to one of our experts on 0344 85 45 161 or email consumer@sgfleet.com.
- You complete a Credit and National Living Wage Check.
- You sign a personal lease for the vehicle.
- You will have a 14-day cooling off period after signing the lease agreement, should you change your mind.
- Falkirk Council to novate the lease so that Falkirk Council pay SG Fleet for the vehicle during the Novated period.
- Once the vehicle is delivered, your gross salary is reduced by the vehicle costs, which is known as Salary Sacrifice. This allows you to make your Income Tax and National Insurance savings, this also reduces your pension contributions (if you are a member of the scheme).
- Company vehicle tax is paid via your tax code for the vehicle.
- If you leave Falkirk Council or your salary reduces below the point where the cost of the vehicle cannot be recovered, the novation ends, and you will continue to pay the full personal lease cost via Direct Debit from your bank account to SG Fleet.
Tax facts
The novated costs attract Income Tax and National Insurance savings from the reduction in gross salary, this is known as Salary Sacrifice.
Getting a car through the salary sacrifice scheme will reduce your gross pensionable salary. Although generating a saving on tax, this reduction in salary will affect your pension contributions because the salary you sacrifice will not be included in your pensionable pay. The result of this is you build up less money for your retirement. If you have pensionable service before 01 April 2015 (final salary service), the salary sacrifice doesn't just affect your future savings but can reduce the final salary linked benefits you've already built up because the pension from this service is linked to your pensionable pay. As a result, you might want to continue to work for at least a year after your salary sacrifice ends to ensure the pensionable pay used in the calculation of this pension returns to its full value.
Company vehicle tax will be payable on all leases being paid for via gross salary.
Company vehicle tax (Benefit in Kind Tax) is calculated via:
- P11d value of the vehicle x Company vehicle tax rate x employee Income Tax rate
The P11d value is the basic list price, plus fixed delivery cost, plus any options, plus VAT.
Current company vehicle tax rates on zero emission vehicles are below (please check HMRC website for any updates or changes):
- Tax Year 2023/2024 = 2%
- Tax Year 2024/2025 = 2%
- Tax Year 2025/2026 = 3%
- Tax Year 2026/2027 = 4%
- Tax Year 2027/2028 = 5%
Please note SG Fleet and Falkirk Council are not in control of HMRC decisions and any future HMRC changes are outside of our control, you should review HMRC rates at the time you order.
The SG Fleet system will provide an estimation of the net cost for you, ie after the effects of both any estimated Income Tax savings and company vehicle tax payable. These estimates are intended to be for illustration purposes only and are calculated based on basic assumptions. They are not tailored to your specific circumstances. SG Fleet recommend that you obtain professional financial advice before entering into any agreement.
HMRC will adjust your PAYE tax code with the vehicle benefit value in order for them to collect the tax due from your pay month by month. Your employer may not register this with HMRC until the following April. Please contact HMRC directly to register your vehicle as a benefit as soon as it is delivered as this is ultimately your responsibility.
Any information you need for the submission will be included in your delivery confirmation email.