Car Leasing

Salary sacrifice is an arrangement where you agree to give up part of your contractual gross salary in exchange for a non-cash benefit, such as a leased vehicle. As the deduction is made from your salary before tax and National Insurance are applied, this can result in savings that you would not get if paying through as private arrangement from your net pay.  However, salary sacrifice arrangements can also affect other aspects of your pay and benefits, so it is important to understand the implications before joining the scheme.

As the vehicle is provided as a company car, a Benefit in Kind (BIK) tax charge will also apply. The amount payable depends on the vehicle selected, including factors such as its value, CO₂ emissions and, for certain vehicles, electric range. Vehicles with lower emissions generally attract lower BIK rates.

West Lothian scheme focuses on low-emission vehicles, with all available cars producing 75g/km CO₂ emissions or less. This supports sustainable travel choices while helping to reduce the environmental impact of driving.

The scheme combines many of the costs associated with running a new car into a single monthly payment, including:

✅ Brand-new electric and hybrid vehicles (restricted to vehicles with emissions of 75g/km CO₂ or less)
✅ No upfront deposit
✅ Fully comprehensive insurance for you and up to four additional named drivers (subject to eligibility requirements)
✅ Servicing and routine maintenance
✅ Tyre replacement due to fair wear and tear
✅ Road tax
✅ Windscreen cover
✅ UK and European breakdown assistance
✅ Optional home charging solutions for electric vehicles
✅ Business use insurance cover where required for Council business

The Car Leasing Scheme offers an alternative to traditional vehicle finance and provides access to the latest electric and hybrid vehicles through a straightforward leasing arrangement.

Benefits include:

• Competitive lease costs through national purchasing arrangements. 
• No deposit required. 
• Fixed monthly costs for the duration of the agreement.
• Maintenance, repairs, tyres and breakdown cover included. 
• Potential tax and National Insurance savings. 
• Access to the latest ultra-low emission and electric vehicle technology. 
• No need to arrange separate insurance, servicing contracts or roadside assistance.

The scheme is available to eligible West Lothian Council employees who meet the criteria set out by the Council and NHS Fleet Solutions. Eligibility checks will be undertaken before an application is approved.

Before joining the scheme, employees should consider their personal and financial circumstances very carefully.

Pension

The salary sacrifice arrangement is not pensionable under the Local Government Pension Scheme (LGPS) and is generally termed by SPPA as an "unapproved salary sacrifice arrangement" as detailed within the circular for Teachers Pensions issued by Scottish Public Pensions Agency (SPPA)(SPPA Circular - Salary Sacrifice for Teachers (PDF, 184 KB)(opens new window)). As pension contributions are based on pensionable pay, participation may reduce the value of pension benefits built up during the lease period. Employees may wish to seek independent pension advice before joining the scheme if they are unsure of the implications.

Family Leave and Statutory Payments

While salary sacrifice can bring a saving through deductions before tax and NI are applied, it does reduce your contractual salary, so it could affect earnings-related payments and benefits, including:

• Statutory Maternity Pay (SMP)
• Occupational Maternity Pay (OMP)
• Adoption and Paternity Pay
• Mortgage and Loan affordability assessments

Employees who are pregnant or planning a family should consider the potential implications before entering the scheme. 

Universal Credit and Other Benefits

Participation may affect entitlement to means-tested benefits such as Universal Credit. The impact will vary depending on individual and household circumstances, therefore employees are encouraged to seek independent advice where appropriate.

Employees can access vehicle quotations, compare models and calculate potential savings through the dedicated NHS Fleet Solutions portal.

Before applying, please ensure you:

• Read the Frequently Asked Questions. (NHS Fleet Solutions - Car Leasing FAQ's (PDF, 699 KB)(opens new window))
• Understand the salary sacrifice arrangement. 
• Consider the impact on your pension and other benefits.
• Review the scheme terms and conditions. 
• Review the relevant guides in the section below

Ready to get started?

Creating a quotation is quick and easy.

• Register with NHS Fleet Solutions. https://www.nhsfleetsolutions.co.uk/login/
• Use the Council's registration code. (TX2)
• Browse available vehicles.
• Selected your preferred vehicle and annual mileage.
• Submit your application for approval.

For your reference there are a number of guides and publications that we would recommend you review prior to entering into any car leasing agreement

• NHS Fleet Solutions - West Lothian Council Brochure (PDF, 619 KB)(opens new window)
• NHS Fleet Solutions - Car Leasing FAQ's (PDF, 699 KB)(opens new window)
• NHS Fleet Solutions - How to create an account (PDF, 341 KB)(opens new window)
• SPPA Circular - Salary Sacrifice for Teachers (PDF, 184 KB)(opens new window)