Human Resources Division
CAMbens Cars Scheme
CAMbens Cars is a salary exchange car lease scheme that provides eligible employees with the opportunity to lease a fully insured car for two years with the additional benefits of maintenance including tyre and glass replacement, road fund licences, servicing, breakdown assistance and accident management all included.
The scheme offers employees a cost effective way to lease a car as the salary exchange arrangement means employees are able to receive Tax and National Insurance savings. Employees will also benefit from the attractive discounts that have been agreed with suppliers and no deposit is required.
Vehicles on offer under the CAMbens Cars scheme qualify as low CO2 emission vehicles (cars emitting 120g/km of CO2 or less), promoting sustainability and encouraging modes of transport for employees which minimise environmental impact.
An example of how you can achieve savings is shown below:
| 20% Taxpayer | 40% taxpayer | |
|---|---|---|
| Salary Exchange Amount | £300 | £300 |
| Net cost to employee | £212 | £177 |
| Tax and NI saved | £88 | £123 |
| Taxable list price | £12,000 | £12,000 |
| Fuel | Diesel | Diesel |
| CO2 | 120 g/km | 120 g/km |
| CO2 % | 13% | 13% |
| Monthly Benefit in Kind Tax payable | £26 | £52 |
| Total monthly cost | £238 | £229 |
- The tax saved and NI saved is calculated by multiplying the salary Exchange amount by the sum of the tax and NI that would otherwise have been paid to HMRC. Contracted out NI rates of 1% for 40% taxpayers and 9.4% for 20% taxpayers are used in the calculation. E.g. for a 40% taxpayer the salary exchange amount is multiplied by 41% and for a 20% taxpayer it is multiplied by 29.4%.
- The Monthly Benefit in Kind is calculated using the following formula: (Taxable List Price × CO2 % × Tax rate) ÷ 12