Guide Frequently Asked Questions
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Frequently Asked Questions Guide
Introduction
Q
to The TCH Salsa
Salary Sacrifice Is there any deposit payable?
Car Scheme
A
TCH Salsa is a unique benefit for No, you will not be required
our employees which allows them to
to pay any deposit towards
sacrifice an element of their salary for
your vehicle.
a fully expensed, leased car, taking
advantage of large manufacturer
fleet discounts on cars, low cost
servicing and parts, VAT savings
(where applicable) and substantial
tax and national insurance savings,
depending on the type of vehicle
chosen.
Under the arrangement the vehicle
will be provided by a company
called TCH Leasing and will be fully
maintained and insured for the whole
of the lease period. Participation in
the scheme will however require you
to agree to a variation in your terms
and conditions of employment. This
document provides further details
on the way that the salary sacrifice
scheme works and addresses
questions that you will need to
consider should you wish to take
advantage of the scheme.
Please note that participation is
completely voluntary.
The Scheme
5: Why is this arrangement more advantageous than a personal lease
from a local dealership or online?
And How It Works
This table shows a comparison:
Example: Hyundai Ioniq 5 Electric Hatchback 125kW SE Connect 58 kWh 5dr
Auto based on 3 years, 8,000 miles per annum for a 40-year-old driver and 40%
1: Why is this car scheme has been taken into account). Usually taxpayer.
being introduced? the sacrifice is made in return for some
TCH Salsa Scheme Personal Lease
We are keen to introduce flexible form of non-cash benefit, which in this
benefits to your overall case is a car and is equivalent to the Deposit required NO YES (3 Months)
reward package. monthly lease cost. In the UK, many
tax efficient benefits are provided via Credit check required NO YES
2: Who is TCH Leasing? salary sacrifice such as childcare, INCLUDED £507.78 per month*
Finance cost
TCH Leasing are one of the leading pensions, cycle to work etc. The
car leasing companies in the UK. sacrifice is achieved by varying your Service, maintenance,
unlimited tyres?
INCLUDED £56.47 per month
Their scheme has been running since terms and conditions of employment
INCLUDED
2012 so they have vast experience of for the term which you choose to Car Insurance and fixed for 3 years, £38 per month
providing this benefit and run many receive the benefit. For this scheme it regardless of claims
successful schemes. is either 2 or 3 years.
Breakdown cover INCLUDED £14 per month
3: What is a salary sacrifice? 4: What are the benefits of a TOTAL Monthly amount £423 per month £616.25 per month
This type of arrangement enables Salary Sacrifice Scheme? including running costs and
taking in to account BIK tax
after income tax and NI
savings
(from net salary)
you to acquire a new car of your The benefits of sacrificing some of
*source – www.comparecontracthire.com - Jan 2022
choice with everything included. your gross salary for a company
If you choose to be provided with car are reduced employee tax and
a vehicle you agree to a reduction National Insurance contributions Many quotes from dealerships or by electric power with petrol or diesel
in your monthly basic salary (your depending on the type of vehicle online will include a large deposit, engine combinations)
salary before taking into account any chosen, access to large fleet be ‘finance only’ with nothing
salary sacrifice arrangement) by an discounts, possible VAT savings, included and come with an additional • On NON ULEV’s company car tax
amount equivalent to the monthly no credit checks to undergo, no ‘document fee’ payable at the start of payable will be either the amount
vehicle rental outlined when ordering deposit to find and the use of a fully the agreement. of income tax saved on the gross
your car. This vehicle value will not maintained and insured new vehicle amount of salary sacrificed OR
usually change over the course of the for the period of the lease. As the cost HMRC Income Tax Rules for Ultra the actual ‘benefit in kind’ (BIK or
agreed period that you keep the car. of the car is taken from gross salary, Low Emission (ULEV) vehicles and ‘company car’ tax) – whichever figure
By entering into this arrangement, you may pay less income tax and NON-ULEV Vehicles is the greater amount. The TCH Salsa
you will typically save on Income tax NI on your remaining salary. Under website illustrates and explains this
and National Insurance Contributions HMRC rules, the benefit (i.e. the car) is The key elements are as follows: calculation when generating your
(NlC) the amount of which will vary classed as a ‘benefit in kind’ (BIK) and • Ultra-Low Emission Vehicles quotes.
dependent on the type of vehicle you you will become liable for company (ULEV’s) will be exempt from the
choose. Under the arrangement you car tax but for low emission cars this is changes. These are vehicles with CO2 • Employee National Insurance
will receive an Adjusted Salary (i.e. often much lower than the tax and NIC emissions of 75g/km or less. This savings will remain (13.25% in the
your salary after the salary sacrifice saving you make on your lower salary. includes all purely electric vehicles case of a 20% tax payer and 3.25%
and many hybrids (vehicles powered for a 40% tax payer)
6: What is included in the Car 8: Could I get a similar deal by 11: Will quotations vary over time? salary sacrifice arrangement to reflect
Salary Sacrifice arrangement? visiting my local franchised motor Yes. Changes can occur in the the additional net cost of VAT that
The package is extremely dealer? amount of discount offered by they are incurring or are unable to
comprehensive and includes the No, the tax, NlC and fleet discount manufacturers and quotes will take recover, in providing the car.
following for the life of the contract; savings are only available via a salary account of the changing cost of
sacrifice arrangement through us, particular cars together with changes 15: When will my car be ready for
• All servicing and maintenance your employer. to finance rates. delivery?
costs. This varies greatly depending on the
9: On what basis is the car 12: How long is the quote valid for? car chosen. The waiting time can,
• The cost of unlimited Tyre provided? All quotes will be valid for a on average, vary anywhere between
replacements and repair. We have entered into an agreement period of 30 days but in order to 2 and 20 weeks. Some very popular
with TCH Leasing - one of the UK’s accommodate our order sign off vehicles which are in demand can be
• Fixed cost, fully comprehensive leading leasing and vehicle process, the leasing company will even longer. An estimated delivery
motor insurance for the Contract management companies to supply refresh all quotations at the point date will be available once the order
period with two extra named drivers the cars ordered under the Salary of order if the above time limit has is placed. If you need to obtain a
allowed. Sacrifice car scheme. Once you have been exceeded. You will then have car quickly just let TCH know and
chosen your car, we will enter into a the opportunity to amend your car they will search for stock or pipeline
• Road tax for your vehicle for the Contract Hire agreement for that car selection if the price has increased. vehicles that are being shipped and
term of your contract (at the and will then provide it to you under if you are prepared to be flexible on
prevailing rate). the salary sacrifice arrangement. The 13: Is there a minimum or colours and extras TCH may be able
car is classed as a “company car” maximum term for the car to find a vehicle quicker than normal.
• Full vehicle roadside breakdown for tax purposes and will be treated scheme?
and recovery service. as a “benefit in kind”. At the end of Yes, the scheme is restricted to either 16: I placed an order recently but
the agreement employees will have 2, 3 or 4 year contracts. have now changed my mind.
The only extra cost you have is for the choice to hand the car back or What can I do?
the fuel or the cost of charging it to request a price to purchase the 14: Once I have chosen a vehicle, You may cancel the order but there
up! car at the market value based on the is the level of sacrifice may be a dealer cancellation charge
vehicle’s age and mileage. guaranteed? payable, this would be a maximum
7: What will be the net cost to me? Once your order has been of £500 unless otherwise advised.
Depending on the vehicle you 10: Can I have more than one car authorised the sacrifice will be TCH Leasing will always endeavour
choose you will save tax, NI and under the car scheme? honoured excluding manufacturer on your behalf to avoid such charges,
possibly VAT (that your company Yes, providing the overall amount of price increases or exceptional however, this cannot be guaranteed.
reclaims and passes on to you in salary sacrificed does not take you circumstances. If the rate of VAT
the form of a lower rental) pension below National Living Wage and increases or VAT rules change during
contributions (subject to the type of subject to authorisation from us. the period that the car is provided,
pension scheme your employer TCH reserve the right to adjust the
operates) on the salary sacrificed,
the amount that you save depends
upon your personal tax and national
insurance position.
Eligibility
On pay and Benefits
1: Who will be eligible to join the 2: Do I have to be in full time 5: Is there any impact on other pay 7: What is the effect on state
car scheme? employment to be eligible for and conditions? pension?
For insurance purposes you must the car scheme? From a pension perspective, your There are two elements to the state
have a full* driving licence and No, however, you will be unable to pensionable salary will reduce pension, the basic element and
be aged 18 or above. If you are participate in the car scheme if the and therefore your own and any the second element. The basic is
under the age of 18 or have a poor amount sacrificed results in your contributions by us may reduce not affected by salary sacrifice as
driving history, you may be refused salary falling below the National accordingly. If you are close to earnings will not be reduced low
insurance cover and cannot therefore Living Wage limit. retirement, participation in the enough.
participate unless authorised by us scheme may affect your salary for
and without the insurance provision. 3: Can I take a car for anyone pension calculation purposes and you The second element is an adjusted
You also cannot participate if the else? should therefore consider avoiding amount depending on what you earn
amount of the salary sacrifice is Yes, you can take a car for yourself or any salary sacrifice in the calculation above the minimum wage, known
considered to be unaffordable, you another member of your household period. Please seek advice from your as the Additional State Pension or
must be sure that you can afford the as long as they too have a full valid pension administrator. the State Second Pension. A salary
vehicle you have chosen and commit driving licence and meet the sacrifice may reduce contributions
for the term of the agreement. insurance criteria previously outlined. Other payments or benefits that for this element for the duration
you receive from employment are of the time that you participate in
We offer this employee benefit as a 4: I am on a fixed term contract - unlikely to be impacted by the salary the salary sacrifice, although the
way of rewarding loyal staff therefore can I participate in the Car Salary sacrifice. If you are unsure, please impact on your final state pension
you must consider carefully whether Sacrifice Scheme? check with the HR department. is likely to be negligible. You should
you are planning to remain in our If you are on a fixed term contract seek professional advice if you are
employment for the period of the you can participate provided that the 6: Does the salary sacrifice have unsure of the impact on your pension
chosen contract length. You will agreement ends prior to the end date any impact on state benefits? benefits.
not be able to voluntarily exit the of your fixed term employment Most state benefits will not be
scheme without incurring termination contract. A minimum 2 year Car affected by participation in salary 8: What is a benefit in kind?
costs. Salary Sacrifice Scheme contract sacrifice, unless participation in the The provision of a car under a salary
applies. car scheme means that your salary sacrifice arrangement constitutes
You also cannot participate in the after the sacrifice is brought below a Company Car arrangement and
scheme should the amount sacrificed the NlC Lower Earnings Limit. To therefore triggers a benefit in kind
take your gross pay below the protect your entitlement to certain charge. The benefit is calculated by
National Living Wage. future state benefits you cannot reference to a percentage related
participate in the salary sacrifice to the CO2 emissions and list price
* Issued in the UK, EU, South Africa, USA, arrangement if your Adjusted Salary of the vehicle. This CO2 related
New Zealand, Canada or Australia were to fall below the NlC Lower percentage determines the level of
Earnings Limit. taxable benefit in kind an employee
is charged by HMRC, i.e. the lower
the emissions the lower the effective
tax rate.9: Will my benefit in kind charge the end of the tax year there may 14: I already participate in a salary where your gross earnings before
change in the future? be some adjustments regarding the sacrifice scheme. Can I participate the salary sacrifice are above the
HM Revenue & Customs (HMRC) collection of tax following the tax in the car scheme as well? earnings threshold. If, after taking
is keen to encourage drivers to year end. Yes. You will be able to participate into account the salary sacrifice
choose vehicles with as low Co2 in the car scheme providing your arrangements your gross earnings
emissions as possible and generally We strongly recommend that you advise Adjusted Salary (post sacrifice salary) fall below £19,895 no deductions
HMRC by phone or online, once your
the set thresholds reduce annually, is not reduced below one of the for student loans will be made.
vehicle has been delivered and advise
the appropriate benefit in kind them that you now have a company car.
following:
percentage related to your vehicle They will need you to provide them with 17: Will it affect my ability to get
can be found at the end of this your national insurance number the • National Living Wage, or; finance?
guide. vehicle description, P11d value and • The NlC Primary Earnings As your taxable gross salary will be
g/km CO2 emissions TCH will provide Threshold reduced, payslips and end of year
10: Will the amount I pay increase a letter on delivery of your car which P60 forms will show a lower amount.
if the company car tax percentage can be sent to our tax office and Eligibility is subject to the combined This may affect your ability to get
is increased? contains all the information they amount of all salary sacrifice credit, for example it may affect a
need to amend your tax code.
The amount you sacrifice will remain arrangements not resulting in your mortgage application if the lender
the same but if the company car Adjusted Salary falling below the uses income multiples. We would
tax rate increases, the additional tax 12: When will the salary sacrifice above thresholds. be willing to provide confirmation of
will become payable and normally take effect? your pre-sacrifice salary for borrowing
collected via a change to your You may see the reduction in your 15: What about maternity/ purposes.
tax code. On the TCH Salsa website salary within the month your car is paternity and sick leave?
the company car tax figures shown delivered dependent on the date You can continue to have use of your Importantly, as there is no credit
on the quotation pages are usually delivered and payroll cut-off dates, vehicle. We will cover payments check involved in joining the scheme
based on an average of the tax alternatively the reduction will take for the vehicle if your pay falls to there will be no record of any search
percentages in each financial year place in the following month. statutory minimum amounts. Any on your credit history.
which your contract covers. financial assistance is discretionary
13: Is this a change to my terms and may be subject to repayment on
11: How will the tax on the benefit and conditions of employment? your return.
in kind charged be taken from me? Yes. For the car scheme to be
We will notify the Tax Office when effective we will need to make 16: Is there any impact on
you take delivery of a car however it amendments to your Terms student loans?
is ultimately YOUR responsibility to and Conditions of employment in If you have a student loan it is
ensure they are notified. The Tax accordance with the provisions of recovered at a rate of 9% on gross
Office will issue a tax code change Section 4 of the Employment Rights annual earnings above £19,895 per
which payroll will apply in order that Act 1996. You will be agreeing to annum (for Loan Plan 1, 2022/23)
the benefit in kind tax can be these changes when you sign the the earnings threshold. Under a
collected monthly from your salary. vehicle order form and employee salary sacrifice arrangement you are
In some instances where HMRC agreement. agreeing to reduce your gross salary.
cannot process the car details for This will result in a reduction in the
new cars within the tax coding before amount of your student loan recoveryOrdering A Vehicle
1: Can I arrange to test drive 3: What makes and models 4: How does mileage affect the 6: What paperwork is required?
vehicles? are available? cost? To complete the order for your
Test drives can often be arranged You can obtain quotes on any make When requesting a quote you will be vehicle you will need to:
direct with the vehicle manufacturer or model of vehicle, but it should be required to enter your anticipated • Sign a salary sacrifice agreement,
via their website or through a noted that vehicles with higher CO2 annual mileage. The higher the agreeing for your salary to be
local franchised dealer. If this is emissions will be less attractive. mileage, the higher the cost will reduced.
not available TCH may be able to be to take into account additional • Agree to the terms of the
arrange a test drive vehicle directly ULTRA LOW EMISSION VEHICLES depreciation and higher servicing agreement for proper use and care
with the manufacturer. You must If a vehicle is in the ULEV category costs etc. You should set your of the vehicle
arrange your own insurance for test they are usually either electric or mileage level to cover the amount • Examine and sign the order form
drives unless this is provided by the petrol/diesel hybrid. This type of you expect to drive. If at the end for the vehicle which outlines the full
dealer. vehicle works extremely well on of the contract you have exceeded specification including extras and
the scheme as the BIK payable the agreed mileage level, you will be external and internal colours
2: How do I get quotes and place (Company Car Tax) is lowest of all. required to pay an excess mileage
an order for a car? charge which will usually range The above documents will be emailed
You need to log onto www.tchsalsa. For full details of this type of vehicle between 5p and 10p per to you once you have completed an
co.uk using the pin number provided please consult the TCH Salsa ‘Guide mile depending upon the value online order. It will also need to be
by us. Once you have logged on for to Electric Vehicles’ accessible by of the car you choose. On the first countersigned by us.
the first time you will need to set up clicking HERE and second anniversary of your
your own username and password vehicle contract it may be possible 7: Is there any deposit payable?
for future access to the quotation You should also consider the location to revise the contract mileage up No, one of the main advantages of
portal. On the website you can of the nearest service agents for or down to take in to account the scheme is that you will not be
obtain a quotation for the car and your vehicle. All vehicle warranty changes in the amount of driving required to pay any deposit towards
insurance package. There is also a conditions must be adhered to you do. The monthly rental can your vehicle.
wide range of special offers. The and this includes servicing and therefore increase or decrease for
price quoted on the website is the maintenance in accordance the remainder of the contract but 8: Where do the cars come from?
amount of salary sacrifice that you with manufacturer guidelines. avoids any excess mileage situation Cars are normally factory ordered
will be required to make. When you Manufacturers require that servicing and having to pay a large lump sum via TCH Leasing’s preferred supplier
are happy with the package and and maintenance is undertaken by at the end. network. These are generally
the cost, you can order this online an authorised service agent. All manufacturer franchised dealers.
and then you will be contacted to service agents must be authorised 5: What about accessories? None of the cars are used or are
progress your order. Please note that by TCH Leasing. In general, most You can add any factory fitted grey imports. Factory order will
vehicle prices change on a regular franchised dealers are authorised by options you wish to the vehicle. If often take between 8 and 14 weeks
basis and each quotation will be TCH Leasing and if they are not they these are not available via the online but is dependent upon the type of
subject to ratification against current generally can be. quotation system, please e-mail vehicle being ordered. If you have any
prices at the time you place an order. salarysacrifice@tchleasing.co.uk questions with regard to lead times for
for assistance. a particular vehicle, please e-mail
salarysacrifice@tchleasing.co.uk9: What about servicing, repairs 11: Who provides the insurance? 13: Are the insurance premiums • have no more than 2 ‘Category
and breakdown? Insurance is provided via Lloyd competitive? A’ convictions in the last 3 years
All vehicles will come with a Latchford, a motor insurance broker As with any insurance policy, (Category A convictions start with
maintenance package which which specialises in policies suited to competitiveness can depend upon a codes SP, CU, LC, MS, MW & PC and
includes: salary sacrifice schemes. At time of number of factors including the car, will be shown on your licence)
writing the policy is underwritten by the postcode where it is kept, the
• All routine servicing and mechanical Aviva or Allianz. ages of the drivers etc. Overall, the • have no convictions starting AC,
repairs insurance premiums should be in line BA, CD, DD, DR, IN, MS, TT, UT in
12: What is included in the with the market. However, as the cost the last 5 years
• Unlimited Replacement tyres due to insurance policy? of the insurance is included within
normal wear and tear The motor insurance policy is fully the salary sacrifice, the net cost to • do not have any conviction
comprehensive with fixed premiums you after tax and National Insurance resulting in a driving ban
• Puncture repairs,‘Roadside’ and ‘at for the whole of the primary contract should always be competitive. Don’t
home’ breakdown cover, including length including: forget as well, the insurance premium • have no more than six penalty
at least a 48 hour emergency is fixed for the life of the contract points on your licence
replacement vehicle should it be • Fixed premiums for up to three period so you do not have to go
required. European cover can be years* looking for renewal quotes every If you do not meet the above criteria,
added by contacting TCH Leasing year! unfortunately you may not be eligible
by email at • Guaranteed courtesy car to participate in the scheme, in which
salarysacrifice@tchleasing.co.uk 14: What conditions must be met case please contact Lloyd Latchford
or call TCH Assist on • Unlimited cover for business use for the insurance? on 01844 276197 or e-mail them at
0333 800 1451 You will be able to obtain a quote for salarysacrifice@lloydlatchford.co.uk
• Legal expenses and uninsured insurance if you: for confirmation. For young drivers
• A service booking facility loss cover aged 18-24, cover is only available
• are aged between 18 and 68 on cars up to insurance group 21.
10: What about road tax? • Cover for European travel years old (a maximum age of 71 For drivers aged 25 and 26, cover is
Road tax is included within the at end of contract) only available on cars up to insurance
scheme for the full term at the • Free windscreen repair group 29. Please note that insurance
prevailing rate at the time of delivery. • are UK resident terms may change from time to time
If there is any fault claim you will be and you should check the website for
TCH Leasing will automatically renew required to pay an excess. Current • hold a full licence from one of the the latest information.
your Road tax on line. As the driver excess rates will be shown with your following countries; UK/EU, South
of the vehicle it is your responsibility insurance quote on the website. The Africa, USA, New Zealand, Canada 15: Can the vehicle be used for
to ensure that your vehicle has valid excess is usually less than typical or Australia (any other licences are tuition?
road tax, to confirm this you can visit personal insurance policies. not acceptable) No, the insurance policy does not
the following web site www.gov.uk/ cover any driver who does not have a
check-vehicle-tax If road tax rates • have no more than 1 fault claim in full licence and the vehicle may NOT
have increased since you ordered * Premium fixed subject to any additional the last 3 years be used for tuition of a learner driver.
your vehicle, you will be charged the driver requirements in the term.
difference between the new rate and
the rate applicable at the time of order.16: How do I obtain a quotation to Lloyd Latchford about the insurance 19: What documentation will I The TCHSalsa website will estimate
for insurance? policy. You can also email them at receive? how much company car tax you will
Quotations for insurance are tchsalsa@lloydlatchford.co.uk. You will receive a certificate of have to pay for the current tax year.
available via the TCH Salsa website. They may not be able to provide you insurance and policy booklet. This However, you must undertake your
You will need to know: with a quotation if you fall outside of pack will contain details of your own investigations as to the tax
the eligibility criteria outlined above. responsibilities and how to make a impact of the scheme and consider
• Your total annual mileage Please note that neither we nor TCH claim etc. any future increases in company car
Leasing can answer insurance queries tax. The Government generally set
• Your number of years no and Lloyd Latchford will not be able to 20: What about company car tax? company car tax rates three years
claims bonus assist with vehicle related queries. You will be liable for company car tax in advance. Full details of the tax
as the vehicle is classed by HMRC as bandings for this and future financial
• Whether a tracker is fitted (most 18: How is the insurance policy a ‘Benefit in Kind’. years as published by HMRC appear
new cars do not have this unless activated? in Appendix 1 at the end of this
specified as an option) The premium quoted when you The amount of company car tax document.
order is guaranteed until the time payable is calculated by reference
• Who will be driving and their dates your vehicle is delivered. As soon to the list price of the vehicle and 21: What happens at the end of
of birth as you know the delivery date, you its CO2 emissions. The list price the term?
must contact the insurance company is multiplied by a sliding scale At the end of the term you will be
• Whether you have had any claims to activate the policy. Please ensure percentage according to CO2 required to return the vehicle to
or convictions in the last three years. that the policy is activated to start emission levels. This calculation will TCH Leasing. If you are ordering a
on the delivery date of your vehicle, determine the taxable benefit in replacement on the same scheme
Please note that the insurance otherwise there may be a period at kind. To calculate the tax payable then we will try to ensure that this
premium will not be affected by the end of a three year term where you need to multiply the taxable coincides with the delivery of your
areas such as factory accessories the insurance expires and you will benefit in kind by your personal tax new car. To ensure that your new
or the contract mileage on your car. not be insured. Full instructions on rate. The company car tax will be car arrives on time, you should look
This means that even if you need to how to activate the policy will be collected via your tax code. We will into ordering your new car at least
contact TCH Leasing for a specific sent to you. If you do not activate advise the tax office that you have six months in advance. Once your
car quotation, you can still obtain the policy you will not be insured a company car. To ensure that your old vehicle has been returned, any
a valid insurance quote from the and you cannot drive the car until tax code is changed promptly, we damages or excess mileage
TCHSalsa website. You will need it is. recommend that you telephone the charges will be due from you.
to ensure that when ordering the tax office to have your tax code
vehicle, the correct vehicle quotation amended. You will need your
is noted on your order. National Insurance number the
vehicle description, P11d value and
17: What if I have any questions g/km CO2 emissions ready to
about insurance? ensure HMRC can locate your tax
A dedicated helpline is available on record.
01844 276197 if you wish to speakAfter My New Car Is Delivered
1: What happens if I do more 3: If I request a price to buy the Association) guidelines. A copy of you are made redundant, we may
than the mileage I selected when car at the end of the agreement, the guide can be viewed below. cover any early termination costs
choosing my vehicle? how will the value be calculated? http://www.tchsalsa.co.uk/fair- arising dependant on the severance
When you choose your vehicle you The value will be set in line with wear-tear-guide/ package agreed. If after the return of
have the opportunity to choose the CAP book price which is the the vehicle there are any damage or
the annual mileage. If you return industry reference guide for pricing 6: What happens if I decide I don’t excess mileage charges due, these
your vehicle with more than the of used vehicles based on the want the vehicle any longer? will be charged to you.
selected mileage you will be liable vehicle’s age and mileage. You are committing for the term
for an excess mileage charge to you select. If you do decide you 8: If I resign can I buy the car and
cover the expense of the additional 4: What other costs will I be no longer want the vehicle you can if so would I still pay an early
depreciation and servicing costs liable for? obtain an early termination quotation termination charge?
that will have been incurred You will need to pay any costs at any time during the term of It may be possible to agree a value
because of the additional mileage. arising due to: the agreement but you will be to purchase the car which negates
The excess mileage rate at which responsible for any charges arising. the need for any early termination
you will be charged will be • Damage or misuse of the vehicle, fee but you will need to discuss this
included on the quotations. TCH including any damage on the 7: What if I resign? with TCH Leasing.
Leasing will endeavour to help you vehicle at the end of the contract If you leave employment for any
prepare for any potential charge and any insurance excesses. reason you must return your car to 9. What happens if I retire on the
by projecting the end of contract TCH Leasing. The only exception grounds of ill health during the
mileage and likely charge so that • Motoring fines. is if your new employer is prepared period of the agreement?
you can accrue a fund to cover this. to novate the lease into their name If you are forced to retire due to Ill
• Increases in road tax as this is only and operate a salary sacrifice health, providing the vehicle was not
2: What if the mileage is below the included at the prevailing rate when arrangement for you. damaged or exceeded its contractual
selected mileage? you order your vehicle mileage (pro-rata) there would be
There will be no change to the If you leave voluntarily or are no termination charge. However,
salary sacrifice amount, however 5: What if the car is damaged? dismissed for disciplinary reasons dismissal resulting from incapability
at the end of the agreement, any As with a private vehicle, if the car before the end of the term, you will would result in an early termination
price provided to you to purchase the is damaged by you and no claim is be required to pay a fee for early charge being levied against you.
car will be based on the made under the motor insurance termination from your final full salary.
selected mileage at the start of the policy, you must repair the vehicle The amount of the fee will depend 10: What happens if I lose my
agreement rather than the actual at your own cost. Any repairs not upon how much your vehicle costs to driving licence on medical
mileage. It may be possible to undertaken will be charged to you lease and the remaining term on your grounds?
re-write the contract after the first at the end of the term. All charges contract. If the fee exceeds your final You can simply return the vehicle with
12 months of contract which may are made in accordance with BVRLA salary payment, you may be required no termination penalties.
reduce the monthly rental. (British Vehicle Rental & Leasing to reimburse us for any excess. If11: What happens if I am the manufacturers at no cost to you, 17: Are there any events that could
disqualified from driving whilst in although this cannot be guaranteed. change the insurance premium
the car scheme? 13: What happens if my car needs during the term?
You may continue to participate in new tyres 16: Who is responsible for the No, unless you require additional
the car scheme but you must not The cost of tyres is included. Simply payment of any fines incurred on drivers. If you do require additional
drive the car yourself. You may allow call TCH Assist on 0333 800 1451 the vehicle or any vehicle provided drivers you should contact Lloyd
a named driver to drive the car on and they will either direct you to the whilst the primary vehicle is off Latchford who will provide a
payment of any extra premium (if not nearest nominated Tyre Centre or the road? quotation. As the salary sacrifice is
already on the policy) Alternatively arrange for a nominated mobile unit Any parking, congestion charges fixed, you will be required to pay the
you can opt to terminate the to visit you to replace your tyres. or other fines incurred by you additional in premium via debit or
agreement but you would then be whilst using the vehicle will be your credit card.
liable for any early termination fees. 14: What do I do if I breakdown? responsibility. Any fines paid by TCH
All vehicles include roadside Leasing will be recovered from your
12: Who is responsible for assistance so whether you net salary.
arranging servicing of the breakdown at home, or on the road
vehicle? you are covered. Call TCH Assist
You are responsible for ensuring that on 0333 800 1451 and you will be
the Manufacturer’s recommended directed to our national breakdown
servicing schedule is adhered to provider who will arrange for you
and it is imperative that you do so to be attended.
to ensure that the warranty is not
invalidated and avoid incurring any 15: What happens if my vehicle
additional charges. For insurance is off the road due to mechanical
services to remain valid the first and failure or accident damage?
subsequent service of the vehicle Roadside assistance is included to
must not be exceeded by more ensure you are never stranded and
than 500 miles or 14 days. a 48 hour relief vehicle is provided
under the Breakdown cover should
The cost of maintenance is included your vehicle be irreparable at the
in the car scheme. Simply call TCH roadside. In the event of your car
Assist on 0333 800 1451 and they being off the road due to accident,
will arrange for the service to be your motor insurance includes a
completed at a dealer convenient courtesy car if the insured vehicle
to you. It may be possible (given a is being repaired by an approved
sufficient lead time) to arrange to repairer of the insurer. ‘At Fault’
have the vehicle collected from your accidents must be reported within
place of work or your home, serviced 48 hours to ensure full cover
and returned to you. applies. Should your vehicle be off
the road due to mechanical failure
TCHAssist will also endeavour to
provide a replacement vehicle via18: What if the car is involved in 22: What happens to my no 23: Is there an excess on the 25: Will the number of drivers on
an accident? claims bonus? insurance? the policy affect the overall cost?
If the car is involved in an accident As with any other insurance policy, The Key Facts documents from Possibly, the insurance premium
with a third party or you need to you will be required to provide proof the insurance provider, sets out may be affected by the number of
claim for any other reason, you must of your no claims bonus. As this is a the detail of cover under each drivers on the policy.
notify the insurance company Lloyd commercial policy you will not accrue policy together with any excess.
Latchford on 01844 276197 or email normal private car no claims bonus. You need to ensure that you 26: I have been given a courtesy
them at However, at the end of the policy carefully read these before placing car whilst my car is being
tchsalsa@lloydlatchford.co.uk. you may request a letter to confirm an order. They are available on the serviced/repaired. What do I
If the car needs to be recovered or your driving history (also known summary screen on the website need to do about insurance?
a courtesy car is required then the as a claims experience). A claims when an insurance quote is The motor insurance under the
insurance company will take care of experience letter is the commercial requested and are also car scheme does not cover a
this. policy equivalent of no claims downloadable from the courtesy car. You will need to ask the
bonus and will be accepted by ‘Registration Page’ of the website garage to insure the car or they may
19: What if I need to make a claim most insurers as an entitlement to or by clicking HERE. offer a cost or damage waiver.
under the insurance policy? the same discount, however it is
You will be provided with all of the your responsibility to check that 24: Can additional drivers be
necessary information on how to your selected provider will added to the insurance policy
make a claim when the policy is acknowledge your driving history during the agreement?
activated. The process is similar to letter as an entitlement to discount Additional drivers can be added
any other personal motor policy. You before you enter into your next but any increase in premium will be
will need to fully cooperate with the private car contract. payable directly by you.
insurance company with regard to
any claims made by you or against
you.
20: What if the car is written off?
If the car is written off then the
arrangement will cease and the
insurance company will deal with the
claim. You will need to order a new
car under the scheme.
21: Are there any tax implications
with regard to insurance?
No, company car tax legislation
incorporates the provision of ancillary
services such as maintenance
and insurance.Company Car Taxation
Here are the Company Car Tax BIK Rates from April 2021 to March 2024:
You will be liable for company car benefit in kind taxation on your
salary sacrifice vehicle. The amount of tax you will pay will depend
upon the CO2 emission (and mileage range from 2022/25 if a plug in,
hybrid engine) of the vehicle you choose. The benefit in kind amount is Cars registered
calculated as follows: Manufacturer’s list price (at the time of delivery) x CO2 from 6th April 2022
scale percentage = BIK charge.
CO2 (g/km) Electric range (miles) 2022-23 (%) 2023/24 (%) 2024/25 (%)
0 N/A 2 2 2
1 to 50 >130 2 2 2
From April 6th 2022, vehicles with zero emissions - Battery Electric
1 to 50 70-129 5 5 5
Vehicles - will incur just 2% COMPANY CAR TAX until April 2025! This
1 to 50 40-69 8 8 8
makes choosing an Electric Vehicle on the TCH Salsa Scheme by far
1 to 50 30-39 12 12 12
the cheapest way of acquiring a new Electric Vehicle! The Co2 scale
1 to 50HAVE YOU
DOWNLOADED
OUR NEW APP?
✓ Vehicle Maintenance
information
✓ “Find my nearest” function
✓ End of lease checklist
AND MUCH MORE!
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