Under salary sacrifice, different rate tax payers pay different amounts for their parking, isn’t this unfair?
Salary sacrifice may be introduced in the future as a partial strategy to offset the increased cost of car parking and other travel issues. It is true that one of the features of salary sacrifice is that the final amount paid is affected by your specific tax rate. This arrangement is not controlled by the University we have to follow HMRC rules. However, the overall tax benefits to all University staff overrules this disadvantage as permit costs can be set at higher rates (with lower net costs to staff as a result of the tax savings) and we will generate increased revenue through employer National Insurance savings, which will contribute to further travel infrastructure developments.