i-Choose Car Parking

The i-Choose car parking scheme which offers you the opportunity to make Tax, National Insurance Contribution (NIC) and Pension contribution (if opted in)

savings on your staff car parking charges.

We are committed to supporting the Trust’s green travel plan which includes the cycle to work scheme available under i-Choose and the use of public transport. However, we also appreciate that for some staff, using a car is a necessity.

Existing methods of paying for car parking for staff who do not wish to sign up for this scheme will remain in place. Please note that obtaining a car parking permit through i-Choose does not guarantee a car parking space.

Who might benefit from the scheme?

Sheffield Teaching Hospitals staff, who currently pay for a car parking permit or may subsequently become eligible to have a car parking permit in the future. However it will not be suitable for staff who only park on site occasionally or those that use other modes of transport to get to work.

How does the scheme work?

The idea behind i-Choose car parking is to increase your take home pay by reducing the amount of tax and NIC you pay. It involves a salary sacrifice arrangement under which you agree to a reduction from gross pay in exchange for a benefit. If you participate, the amount by which your gross pay will be reduced will be equal to that you would normally pay for a car parking permit. This method will reduce the amount of tax and NIC you pay compared to the cost to you if you purchased a permit through net pay.

How much will I save? (rates correct at the time of publication)

Above is a table showing the estimated savings that can be made if you are a basic rate taxpayer who pays 10.6% NIC for the tax year 2014/15. It does not take into account any additional savings you may make in employee pension contributions. If you are a higher rate taxpayer you could potentially save even more.

How do I join the scheme?

• Fill in the Application Form in the general i-Choose leaflet available from the i-Choose co-ordinator or download it from Sheffield Teaching Hospitals’ intranet.

• Send your completed Application Form to the Payroll Department for authorisation.

• A check will be made to ensure that you do not fall below the National Minimum Wage by signing up for this scheme (this is a legal requirement) or the Lower Earnings Limit for NIC purposes.

• If your application is approved, we will notify Payroll to activate the change from a deduction to a reduction of your salary.

The first reduction to your salary will take place at the end of the first month you are accepted and will be indicated on your payslip. If you do not already hold a parking permit but wish to apply, applications are available from the Travel pages of the Hotel Services intranet site. Should your application be successful, you will be able to participate in i-Choose car parking.

Does joining the scheme guarantee me a parking space on site?

No. this remains the same - there is no guarantee that a car parking space will be available on each day you wish to use it. The only change made by participating in i-Choose car parking is that you benefit from tax and NIC savings.

Group A / Group B / Group C
Amounts shown are for full time employee permit / AFC Band 1 / AFC Band 2-7 / AFC Band 8+
STH Grade 1-3 / STH Grade 4 – 11 / STH Grade 12+
Monthly Permit Cost / £18.01 / £21.19 / £27.54
Monthly Permit Salary Sacrifice Amount / £18.01 / £21.19 / £27.54
Annual Salary Sacrifice Amount / £216.12 / £254.28 / £330.48
Annual Tax & NIC Savings / £69.16 / £81.37 / £105.75
Annual NET cost to you for a Parking Permit / £146.96 / £172.91 / £224.73

Rates given are based on a basic rate tax payer with 12% NIC (rates correct at the time of publication).

If you are a higher rate tax payer, potentially you could save even more.

Does joining the scheme automatically entitle me to a parking permit?

No. This remains the same i.e. the agreed criteria are applied to determine who is successful.

How long must I sign up for the scheme?

Once you opt in to i-Choose car parking your decision will remain valid until 30th April each year .You will automatically be re-enrolled into the scheme from 1st May each year. If you do not wish to continue at this stage please send a written notification to the i-choose co-ordinator by the 30th April.

You will however, be able to opt out of i-Choose car parking earlier under a ‘lifestyle event’.

What happens if I leave my job at Sheffield Teaching Hospitals?

Your salary reductions will cease at the end of the month in which you leave.

Will entering into a Salary Sacrifice agreement effect my NHS Pension Scheme benefits?

Yes, the way your NHS Pension benefits are calculated is based on your Pensionable pay, deductions from your pay in respect of salary sacrifice reduce your pensionable pay, which then reduces the pension benefits which will be payable upon retirement. Please read the

“i-choose introduction” leaflet for more information, or contact your local Pension department or i-choose co-ordinator for more information.

Contacts and Further Information

More detailed information on salary sacrifice itself is available on the general i-Choose leaflet which should be read in conjunction with this leaflet before deciding if this scheme is for you.

i-Choose Coordinator: 0114 305 2427 (STH Ext 52427)

Current parking charges can be found on the Trust’s intranet site:

ParkingCharge Matrix

All the leaflets and information can be accessed on

Or alternatively

Trust’s intranet site under News & Other Useful Stuff – Staff Benefits –

i-Choose:

sthweb.sth.nhs.uk/CorpComms_pub/

updated Apr15