Payroll

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Tax changes - impact on Parking Plus and Fitness Plus deductions

Salary sacrifice schemes relating to car parking and STV membership will end for all members of staff from April 2018.

These schemes offer income tax and National Insurance (NI) savings to the employee and NI savings to the employer.

In the 2016 Autumn Statement the UK Government announced that it was to limit the range of salary sacrifice schemes. From April 2017 new members of staff were unable to join either the car parking or STV membership salary sacrifice schemes. From April 2018 these schemes will be withdrawn for all members of staff.

The University will continue to offer salary sacrifice schemes which provide pension contribution, childcare and cycle to work benefits. These are not affected by the changes in UK government policy.

The changes mean that:

  • The salary sacrifice scheme known as ‘Parking Plus’ will end in April 2018 for all members of staff.  This scheme was established in 2009 and at this point in time the University increased parking charges by around 33%.  With the ending of the scheme the University has decided to reduce parking charges to the level they were in 2009 allowing for an annual increase at CPI for the subsequent years.  The cost of a standard permit will fall from £15.41 (£184.92 pa) to £11.40 (£136.80 pa), a reduction of 26%. Taking into account the end of the salary sacrifice scheme, it has been estimated that the increase in the cost for members of staff with a standard permit, will be minimal.  Other parking charges will be adjusted by the same proportion as a standard permit.

Any car parking queries please contact security-car-parks@bath.ac.uk or call 01225 386562 

  • The salary sacrifice scheme known as ‘Fitness Plus’ will also end in April 2018 for all existing members of staff. At the point in time this scheme was introduced there was no change in membership fees and therefore this will mean the same deduction will continue to be made but NI savings previously enjoyed will no longer be available.

Any membership queries please contact teambath-memberships@bath.ac.uk or call 01225 383597.

Staff are still able to become members of the gym and apply for parking permits only the tax benefits associated with these are ceasing. With regards to Childcare vouchers, nursery plus and cycle to work these are still government approved salary sacrifice schemes that remain in place and are operated at the University. Further information about these can be found on the pay and reward pages of the intranet: http://www.bath.ac.uk/hr/working/pay-reward/salary-exchange/index.html, if you have any further questions about these schemes then please email reward-hr@bath.ac.uk