When an employee driving a scheme vehicle receives a fine or penalty charge notice (PCN), it is ultimately the employee's financial responsibility — not the employer's and not The Electric Car Scheme's. However, because the vehicle is registered to the lessor (e.g. Novuna, Lex, Alphabet, Arval), the lessor receives the fine first, which creates an administrative process for you as the Scheme Coordinator to manage.
Important: The Electric Car Scheme does not pay fines on your behalf and we do not communicate directly with issuing authorities or councils. Our role is to process the claim you submit and provide updated salary sacrifice instructions so costs can be recovered from the employee through payroll — but only where the pay-and-recharge route applies. See below for the full breakdown.
Types of fines and charges
Fines relating to scheme vehicles generally fall into these categories:
- Penalty Charge Notices (PCNs) — parking fines (council-issued), moving traffic offences such as yellow box junctions, bus lanes, and no-entry signs
- Toll and congestion charges — Dartford Crossing, Mersey Gateway, London Congestion Charge, ULEZ
- Speeding fines — camera-detected speeding, initially sent to the lessor who then passes it to you or the employee
- Private parking charges — issued by private companies rather than councils, and subject to a different legal process under the Protection of Freedoms Act
How lessors handle fines
Every fine will follow one of two routes depending on the charge type and lessor:
- Transfer of liability — the lessor transfers the PCN into your company's name. You receive the fine directly and must deal with it or pass it to the employee by contacting the issuing authority directly. An administration fee (typically £10–£25 depending on the lessor) applies. This route cannot be processed via salary sacrifice — see the section below.
- Lessor pays and recharges — the lessor pays the fine and invoices your company for the fine amount plus their administration fee. Submit this invoice to us and we will issue salary sacrifice instructions to recover it from the employee. This is the only route for London Congestion Charge, ULEZ, Tyne Tunnel, and Humber Bridge, as transfer of liability is not possible for these.
What The Electric Car Scheme will do
When you submit a fine claim via the Fine Management form in your employer portal, our Operations team will:
- Review the fine details you have submitted
- Identify the relevant employee and their salary sacrifice schedule
- Calculate the amounts that need to be recovered through payroll
- Issue updated salary sacrifice instructions so the fine amount and any lessor administration fee can be deducted from the employee's gross salary
Please submit claims as soon as possible to ensure we can issue updated payroll instructions before your next payroll run.
What The Electric Car Scheme will not do
- Pay fines on behalf of your company or employees
- Contact councils, issuing authorities, or private parking companies on your behalf
- Make representations or lodge appeals with issuing authorities
- Negotiate with lessors on the handling of individual fines
Charges that cannot be recovered via salary sacrifice
For certain charge types, the transfer of liability route applies. This means the PCN is formally transferred from the lessor into your company's name, and it is then your responsibility to transfer it to the employee by dealing directly with the issuing authority. The Electric Car Scheme cannot process these via salary sacrifice.
This applies to the following:
- Speeding fines — once the lessor transfers liability, you must identify the driver and respond to the issuing authority. Some police forces accept electronic representations. Liability can be transferred multiple times if the correct agreements are in place (lessor → employer → employee).
- Dartford Crossing and Mersey Gateway (where transfer is accepted) — while leases over 6 months technically cannot transfer liability, these operators sometimes accept it electronically. Where they do, the charge falls to the employer to resolve directly with the employee.
For these charge types, you are responsible for contacting the issuing authority directly and arranging transfer of liability to the employee. Once the fine has been fully resolved and settled by the employee, there is nothing further for us to process.
How to submit a fine claim
This applies to pay-and-recharge invoices that can be processed via salary sacrifice.
- Receive the invoice — you will receive an invoice from your lessor for a paid fine plus their administration fee. Keep a copy of all documentation.
- Check who was driving — identify which employee was driving the vehicle at the time. The lessor may ask you to confirm the driver's details.
- Submit to The Electric Car Scheme — use the Fine Management form in your employer portal. Upload a copy of the invoice and confirm whether the amount has already been deducted from the employee.
- We process the claim — our Operations team will review your submission, calculate the amount to be recovered, and update the employee's salary sacrifice schedule.
- Implement the payroll instruction — you will receive updated salary sacrifice instructions to apply in your next payroll run.
- If the fine is successfully appealed — notify us immediately and we will reverse the salary sacrifice adjustment. Note: lessor administration fees are not always refunded even if the fine is cancelled — this depends on the lessor.
Lessor administration fees
Each time a lessor processes a fine they charge an administration fee. These are payable by the employer and should be recovered from the employee alongside the fine amount.
- Novuna — £12.50 per fine handled, regardless of route
- Lex — £10 to transfer liability; £25 if Lex pay the fine directly. Fines are handled within 48 hours.
- Alphabet — fee varies; applies whether paying or transferring. If a fine is successfully appealed, Alphabet will credit the fee.
- Arval — £15. Fine is usually transferred; occasionally paid and recharged if transfer is not possible.
Fees are subject to change by the lessor. Check with your lessor or account manager if you are unsure of the current rate.
Frequently asked questions
Can the employee appeal the fine themselves?
Yes. For council-issued PCNs, a representation can be made on the grounds the employee was the driver, not the registered keeper. For fines on private land, appeals can be made through independent services such as POPLA. Note that paying a fine is often treated as an admission of guilt, which makes an appeal harder — employees should appeal before paying where possible.
What if the fine has already increased in value by the time we receive it?
Lessors sometimes forward fines after the discounted payment window has passed. The increased amount will still need to be passed to the employee. Please submit as soon as you receive the fine or invoice to minimise delays.
What happens with speeding fines?
Speeding fines are initially sent to the lessor, who will forward them to you. It is your responsibility to confirm who was driving and notify the relevant authority. Some police forces accept electronic representations. Liability can be transferred multiple times if the correct agreements are in place.
Can we transfer liability for London Congestion Charges?
No. Lessors cannot transfer liability for congestion charges. These will be paid by the lessor and recharged to your company as an invoice. Submit this to us via the Fine Management form and we will issue salary sacrifice instructions to recover the cost from the employee.
What if the fine is from abroad?
Overseas fines are often difficult to enforce in the UK. However, if the lessor receives and processes one, they will typically pay and recharge your company. Submit it to us and we will handle the payroll instruction as normal.
Does submitting a fine pause the employee's salary sacrifice?
No — regular salary sacrifice payments continue as normal. We will issue a one-off adjusted instruction to recover the fine amount separately from the monthly deduction.