Car Maintenance

Salary Sacrifice is where an employee agrees to forego part of their pre-tax salary in exchange for a benefit from their employer, in this case for the purposes of car maintenance. Since a portion of the salary is foregone, the employee does not pay National Insurance on the amount sacrificed.

You can determine a set period of time up to 12 months for the deductions to be taken from the employees’ salary.

The employee will make savings through National Insurance, a basic rate taxpayer will save 8% and a higher rate taxpayer 2%.

On all of the marketing and on the benefits portal, it will direct employees to the Halfords Autocentre website where they will be able to enter in their car vehicle registration where it will then detail all the costs involved for such things as servicing, mot and tyre replacement.

Employees will have access to hundreds of Halfords Autocentres and stores throughout the UK. On both the Halfords Autocentre website and the benefits portal employees will have access to a garage and store locator whereby they are able to enter their postcode to see garages within their local area.

Absolutely, we want your employees to get the best value meaning they can take advantage of any promotional prices on offer.

Once the employee has submitted their application all we require from the employer is for the eligibility checks to be carried out, this is to ensure they have met the criteria stipulated by the employer to enrol onto the benefit. Once we are in receipt of the approval, we will issue the Letter of Redemption the employee electronically within one working hour.

Here at Halfords, we want to get the Letters of Redemption out to employees as soon as possible and will offer you retrospective invoicing on a 30-day account basis (subject to credit check). See below a working example of how an invoice will be raised: – 5 employees joined in the month of September each selecting £200 meaning one invoice will be raised at the end of the month for £1000 and sent to the employer for payment.

Yes, the provision of car maintenance is a taxable Benefit In Kind (BIK) that needs to be reported to HMRC on a P11D benefits form at the end of the tax year.

Yes, if initial outlay is of concern, then we do offer scheme funding options meaning the payments can be spread aligned with the deductions taken from employees. Please note that there will be a small charge if employer’s wish to take out scheme funding. If this is of interest, please contact your consultant for more information.

The Car Maintenance Scheme can be facilitated through a net deduction arrangement. Employees will not be able to avail of any NI savings, but the key benefit is that the payments can be spread over a 12-month period making them manageable and more affordable for employees.