The Administration Services Agreement (ASA) is a contract setting out the relationship between The Electric Car Scheme (as service provider) and a participating company (as service recipient).
The ASA outlines our services and what companies can expect from us when implementing the scheme, as well as setting out the requirements of companies when rolling out the scheme as a benefit to their employees.
Topics the ASA covers include:
- Our services under the salary sacrifice scheme
- Our fee
- Early termination support
- Company Obligations
- Our responsibility regarding data protection
An overview of our services
- We offer a salary sacrifice scheme, which enables employees to exchange part of their gross basic salary in return for the provision of an electric vehicle.
- We will communicate to your employees participating in the scheme the details of their specific salary deductions, tax and National Insurance contributions and estimated savings.
- We will confirm to you whether an employee meets the HMRC eligibility tests in order to participate in the Scheme.
- We will facilitate preparations of submissions to HMRC on behalf of you and your employees for the purpose of the Scheme.
- We will help you manage your Vehicle Hire Agreements, including assisting you in your dealings with Vehicle Providers.
- We’ll provide you with an online employer portal, which will provide salary sacrifice support and other useful information, like monthly invoices and a breakdown of the administration fee.
- We will provide reporting information to assist with quotations, contracts, billing and taxation information, showing for each employee.
- We will provide a template Salary Sacrifice Agreement that you can enter into with your employees to enable their participation in the Scheme.
- We will provide you support in the cases of any early terminations.
An overview of our fee
By working with us, you agree to pay us an “Administration Fee” for our Services. To ensure net zero cost to you, our Administration Fee is equal to your tax savings on each hire agreement you/a company enters in relation to an electric vehicle hired by an employee under the scheme. This Administration Fee is calculated as the sum of:
- “Employer Tax Savings”: the applicable National Insurance savings you make due to employee salary sacrifice under the Scheme, less any applicable increase to National Insurance arising from any benefit-in kind incurred by an employee under the Scheme (where, for the purposes of this Agreement the National Insurance rate is 13.8%, or the prevailing rate if higher)
- “VAT Savings”: the reclaimable VAT for each Vehicle Hire Agreement and any additional services or fees (set for the purposes of this Agreement at 10% for lease or hire costs and 20% for other services and fees, or the prevailing rates if higher).
An Overview of Early Termination Support
- Our services also include supporting you with any potential or actual early terminations of a hire agreement for an electric vehicle, e.g. liaising with the lessor or subscription provider for that electric vehicle and helping you navigate the termination process. This early termination support is covered by our Administration Fee , so you don’t need to worry about paying more if circumstances change.
- Terminating a lease early can result in early termination fees of certain value. As such, our services also include helping companies liaise with employees and the lessor in relation to those fees and reimbursing the company for fees in certain circumstances, as set out in their ASA (e.g. long term sick leave). Liability for different fees in the event of early termination of a lease is set out in the ASA.
- Early termination of a subscription does not incur early termination fees.
An Overview of Company Obligations
- The company is obliged to reasonably cooperate with us in all matters relating to our Services and ensure that they do not enter into a Salary Sacrifice Agreement with an employee if their gross basic salary falls or is expected to fall below the National Minimum Wage.
- The company is obliged to provide us with all documents, information, items and materials in any form as reasonably required by us in connection with the Services in a timely manner and ensure that they are true, accurate and complete.
- The company is obliged to ensure that a Salary Sacrifice Agreement is signed before an employee has their Vehicle delivered.
- If your Scheme includes Leases, the company is obliged to promptly notify us if your Attrition increases to more than 20%, promptly notify us if you undergo a change of control, promptly notify us in the event of a likely early termination of a Vehicle Hire Agreement.
An Overview of our Responsibility Regarding Data Protection
- Both The Electric Car Scheme and the company agree to comply with the Data Protection Legislation in our respective performance or receipt of the Services.
- Each of us understands and intends that the company is the controller and we are the processor with respect to the Services.