Hilton Worldwide. UK Company Car Program. Effective from 6 April 2011

Transcription

1 Hilton Worldwide UK Company Car Program Effective from 6 April 2011 Page 1 of 33 16/06/2011

2 CONTENTS 1 SCOPE DEFINITIONS ELIGIBILITY General Job Cars Benefit Cars JOB CARS Eligibility Sources of Job Car Job Car details Contract lease period Leavers Up trading and down trading Accessories Replacement cars Purchase of Job Cars BENEFIT CARS Eligibility Sources of Benefit Car Choice of Benefit Car Contract lease period New hires/promotions into an eligible Grade/job changes Leavers Up trading and down trading Accessories Replacement cars Purchase of Benefit Cars CASH ALLOWANCE Eligibility Electing to receive a Cash Allowance Cash Allowance amounts TEAM MEMBERS USING THEIR OWN CAR FOR COMPANY BUSINESS USE Eligibility Requirements for individuals who drive on Company business Payment for business mileage Tax relief for business mileage FUEL Team Members in receipt of a Fuel Card at 6 April Business mileage from 6 April Using a Fuel Card Recording business mileage Payment of fuel allowance for business mileage Fuel benefit for private mileage Choice of fuel HEALTH AND SAFETY General Driver Safety Handbook INDIVIDUAL RESPONSIBILITIES Maintenance of Company Cars Maintenance of cars used for driving on Company business Congestion/parking fines Accidents Insurance Other AUTHORISATION PROCEDURES Page 2 of 33 01/07/2011

3 1 Scope The content of this document applies to all UK based Team Members who are eligible for a Company Car and all UK based Team Members who drive on Company business This document contains references to the tax treatment of Company Car provision and related benefits and payments (e.g. fuel payments, mileage allowance etc). Drivers are strongly advised to consult the HMRC website ( for more detailed and up to date information on this subject as the information provided in this document is subject to budgetary changes. The Company will not be responsible for any loss or failure to make a claim resulting from a reliance by the Team Member on the Company s understanding of the current tax laws set out in this document. To ensure compliance with current tax laws applicable, it is advisable to seek independent tax advice The Company reserves the right to amend this document at its discretion. Participation in the Company Car program is subject to review from time to time. In case of dispute, discrepancy, misunderstanding or in cases of unforeseen situations or other circumstances not covered in this document, the Company will reserve the right to rule at its discretion Team Members who use their own car for Company business purposes are required to read the provisions contained within this document. Where a Team Member uses their own car on business they should ensure that they are adequately insured and their insurance provides for cover in case of business use Use of a Company supplied car, acceptance of the cash allowance and/or driving on Company business constitutes as an agreement to the regulations contained in this document. Page 3 of 33 01/07/2011

4 2 Definitions In the context of this document the following expressions and abbreviations will have the associated definitions ascribed to them: Benefit Cars Cash Allowance The Company Company Cars Benefit Cars are provided to Team Members who are at the appropriate Grade within the Company to qualify for a car benefit. The Team Member has elected to receive a taxable cash allowance in lieu of the Benefit Car. This allowance can be used to privately acquire a car, either leased or otherwise. Hilton Worldwide and all Hilton Worldwide entities registered in the UK and all linked organisations adopting this Company Car program. A car provided by the Company (either a Job Car or a Benefit Car ) for use by a Team Member. A Company Car represents a taxable benefit in kind to the Team Member. The Driver Driver Risk Assessment Fleet/Benefits Officer The Team Member of the Company to whom the car has been allocated and who will be responsible for any benefit in kind assessment made by HMRC. The Lease Provider s risk solution which applies to all Company Car drivers and any Team Member who drives on Company business. This is an online system provided by the Lease Provider that enables the Company to fulfil their health and safety obligations in relation to Team Members who drive on Company business. The Hilton Team Member responsible for the management of Company Cars. Fleet Desk HMRC Job Cars Lease Provider The Lease Provider s employees who are assigned to be responsible for the management of Company Cars. The contact number for the Fleet Desk is within the UK and outside of the UK. HM Revenue and Customs Job Cars are provided to Team Members who do not have an entitlement to a Benefit Car but, it is anticipated, will regularly cover more than 10,000 business miles each year in order to carry out their job responsibilities effectively. The provision of a Job Car is subject to ongoing satisfaction of these criteria. ING Car Lease UK Ltd Page 4 of 33 01/07/2011

5 3 Eligibility 3.1 General The provision of a Company Car to a specific Team Member may be ended if the Team Member receiving the benefit: (i) (ii) (iii) (iv) Loses their valid driving licence. If the Team Member loses their licence they must inform the Fleet/Benefits Officer immediately. Is convicted of drink, drug or dangerous driving. Is too frequently involved in accidents. Fails to maintain the car in accordance with the requirements set out in this document and the Driver Safety Handbook (see section 10 Individual Responsibilities and the Appendix respectively). 3.2 Job Cars In order to support the Company s business effectively and to maintain a competitive position, the provision of a Company Car is a requirement for certain job functions Where a Team Member is required to travel, for business purposes, in excess of 10,000 miles each year, they will be entitled to a Job Car. The provision of a Job Car is subject to ongoing satisfaction of this criterion Full details of the Job Car program are set out in section 4 of this document. 3.3 Benefit Cars Eligibility for a Benefit Car or Cash Allowance is determined by a Team Member s Grade. Eligibility entitlements are as follows: Page 5 of 33 01/07/2011

6 Grade Grade 1 Grade 2 Grade 3 Grade 4 Entitlement Choice of Benefit Car or Cash Allowance Choice of Benefit Car or Cash Allowance Choice of Benefit Car or Cash Allowance Cash Allowance Only An exception to the eligibility entitlements set out in above is that Team Members who were Grade 4 on 6 April 2011 will not be limited to a Cash Allowance only under the new program. The entitlement for Team Members at Grade 4 on 6 April 2011 are set out below: Grade (at 6 April 2011) Grade 4 (in receipt of a Company Car at 6 April 2011) Grade 4 (in receipt of Cash Allowance at 6 April 2011) Entitlement On expiry of the Team Member s current car lease contract, the Team Member will be entitled to the Job Car or Cash Allowance. Team Members in receipt of the Cash Allowance will be entitled to cancel their cash allowance and switch to a Job Car (on an annual basis see section 6.2.2) A further exception applies to ungraded Team Members who were in receipt of a Job Car at 6 April On promotion to Grade 4, such Team Member may choose to continue with the Job Car rather than only being entitled to the Cash Allowance. Grade (at 6 April 2011) Ungraded (in receipt of a Job Car at 6 April 2011) Entitlement On promotion to Grade 4, the Team Member may choose to continue with the Job Car. In this circumstance the Team Member would not be entitled to the Cash Allowance in addition to the Job Car Where a Team Member qualifies for a Benefit Car and is required to travel, for business purposes in excess of 10,000 miles each year, they will be required to take the Benefit Car. Page 6 of 33 01/07/2011

7 3.3.5 The Benefit Car type and Cash Allowance amount is dependent on a Team Member s Grade. Further details on Benefit Cars and Cash Allowances are provided in sections 5 and 6 of this document respectively. Page 7 of 33 01/07/2011

8 4 Job Cars 4.1 Eligibility Please refer to the eligibility criteria in section 3 of this document for details of which Team Members are eligible for a Job Car. 4.2 Sources of Job Car Job Cars are provided by the Company s Lease Provider. The Company works with the Lease Provider to control the sourcing of Job Cars and all of the contractual terms related to them. 4.3 Job Car details Please contact the Fleet Desk or the Fleet/Benefits Officer for details on type and model of Job Car. 4.4 Contract lease period Standard contracts normally run for 48 months / 75,000 miles, whichever comes first. A Team Member s lease contract will be based upon estimated total annual mileage as confirmed with the Fleet/Benefits Officer Team Members should notify the Fleet/Benefits Officer of any change in their anticipated mileage during the contract lease period. If appropriate, the lease contract will be reviewed to ensure that it remains cost effective in the new circumstances At any time the Company reserves the right to exchange a high mileage Job Car for a lower mileage Job Car in order to minimise lease costs to the Company. Page 8 of 33 01/07/2011

9 4.5 Leavers It is the Team Member s own responsibility to ensure that the Company Car is returned clean and undamaged. Any cleaning costs incurred by the Lease Provider related to damage beyond fair wear and tear will be deducted from the Team Member s salary. Any deductions will be at the discretion of the Fleet/Benefits Officer, who will consider car leasing industry standards in assessing the appropriate deduction Where a Job Car cannot be reallocated the early termination charges will be met by the previous driver s department Job Car drivers are required to return their car to the Company whilst on maternity leave. 4.6 Up trading and down trading Job Car drivers are not allowed to trade up or trade down. 4.7 Accessories Job Cars will be supplied with a CD player and Bluetooth (where standard), and an engine immobiliser. If Bluetooth is not standard in a car it will not be fitted in line with the Driver Safety Handbook Team Members are permitted to add accessories to a Job Car up to a maximum value of 600. All accessories must be manufacturer-approved and authorised by the Fleet/Benefits Officer and by the Fleet Desk. Drivers must pay for these accessories directly to the Lease Provider. If the accessories are not paid for within 28 days of a Team Member being invoiced by the Lease Provider, the Company will deduct the appropriate amount from the Team Member s salary. Should the Page 9 of 33 01/07/2011

10 driver leave the employment of Hilton before the end of the lease, no refund or compensation will be made to Team Members in respect of any costs incurred Team Members are permitted to purchase a built in satellite navigation system in addition to the permitted accessosries described in above. The satellite navigation system must be manufacturer approved and authorised by the Fleet/Benefits Officer and by the Fleet Desk. Drivers must pay for the satellite navigation system directly to the Lease Provider. If the satellite navigation system is not paid for within 28 days of a Team Member being invoiced by the Lease Provider, the Company will deduct the appropriate amount from the Team Member s salary. Should the driver leave the employment of Hilton before the end of the lease, no refund or compensation will be made to Team Members in respect of any costs incurred The Team Member will be required to meet any costs associated with fitting the accessories Team Members are under no circumstances permitted to modify their Company Cars in any way, including modifications which could affect the cars performance and handling. 4.8 Replacement cars A courtesy car, if required in an emergency or in the event of the lease car being off the road, may be supplied by the Lease Provider for a maximum of two days. The Fleet/Benefits Officer will decide on the duration on a case by case basis In case of a prolonged period of replacement car being required, the Company may arrange for a replacement car of an appropriate grade which will be recharged to the Team Member s department and which has to be authorised by the Fleet/Benefits Officer Where a hire car is provided as a replacement car, this should be returned with a full tank of fuel at the end of the period of hire. Page 10 of 33 01/07/2011

11 4.9 Purchase of Job Cars Job Cars are owned by the Lease Provider and revert to them at the end of the lease period for disposal. Team Members wishing to purchase a car at the end of the lease period should apply and deal directly (at their own risk) with the Lease Provider. Page 11 of 33 01/07/2011

12 5 Benefit Cars 5.1 Eligibility Please refer to the eligibility criteria in section 3 of this document for details of which Team Members are eligible for a Benefit Car. 5.2 Sources of Benefit Car Benefit Cars are provided by the Company s Lease Provider. The Company works with the Lease Provider to control the sourcing of Benefit Cars and all of the contractual terms related to them. 5.3 Choice of Benefit Car Team Members who are eligible for a Benefit Car will be provided with a choice of models from manufacturers determined by the Company The selection of a Benefit Car is determined by reference to a benchmark lease price for that Team Member s Grade. The benchmark lease price will be reviewed by the Company on an annual basis. The benchmark lease price is based on a standard contract term of 48 months / 75,000 miles. The benchmark lease price excludes VAT Benefit Cars are subject to the following restrictions: - Benefit Cars must have at least FOUR standard doors - SUV or Crossover type vehicles are not permitted - Soft-tops, Coupes and Cabriolets are not permitted - Cars with CO₂ emissions in excess of 160g/km are not permitted (applicable for Grade 2 and below) Page 12 of 33 01/07/2011

13 5.3.4 The table below sets out details of the relevant benchmark lease prices at each Grade, based on the standard contract (48 months / 75,000 miles). Eligible Team Members can choose a Benefit Car with a maximum monthly benchmark rental cost up to or equal to that for their Grade. However actual lease prices may be different depending on the actual contract length. Grade Grade 1 SVP1 Grade 1 SVP2 Grade 1 - VP Grade 2 Grade 3 Maximum Benchmark Lease Price No maximum lease price but car must have a tax list price not exceeding 55,000 No maximum lease price but car must have a tax list price not exceeding 40, per month 400 per month 330 per month The car list for a particular Grade may change from time to time as old models come off, new models are added and as the car lease prices are updated by the Lease Provider. The Company reserves the right to make changes to the available car list, if and when required, without prior communication to Team Members. 5.4 Contract lease period Standard contracts normally run for 48 months / 75,000 miles, whichever comes first. A Team Member s lease contract will be based upon estimated total annual mileage as confirmed with the Fleet/Benefits Officer Team Members should notify the Fleet/Benefits Officer of any change in their anticipated mileage during the contract lease period. If appropriate, the lease contract will be reviewed to ensure that it remains cost effective in the new circumstances At any time the Company reserves the right to exchange a high mileage Company Car for a lower mileage Company Car of the same grade in order to minimise lease costs to the Company. Page 13 of 33 01/07/2011

14 5.4.4 Team Members who elect to have a Benefit Car do so for the full-term of the lease agreement. In normal circumstances the lease will not be cancelled and the Team Member will not be allowed to take the Cash Allowance during this time At the expiry of the lease of their Benefit Car, the Team Member can select a new car from the current available car list for their Grade. Team Members will be contacted prior to the Benefit Car renewal date, in order that they can make their election. 5.5 New hires/promotions into an eligible Grade/job changes It is important to note that relevant new starters, promotions and repatriations have one month from the effective date of their new assignment/position to determine whether they wish to join the Company Car or Cash Allowance scheme. In the event that no decision is made, the default action will be that the relevant Team Member will receive the Cash Allowance with the relevant provisions and restrictions applying New and existing Team Members who become eligible for a Company Car may be allocated an existing car from the unallocated car list, which they will use until it is due for renewal. At renewal they will be able to choose an appropriate car At the Company s discretion, Team Members may be offered a car from the next Grade above their own; however, they will have to meet any resultant increase in personal taxation. Team Members who have been offered a car from the next Grade up will revert back to their correct Grade upon entering into a new lease Whilst waiting for a Benefit Car to arrive an interim car may be arranged. Team Members should contact the Benefits Officer to discuss this Where a newly hired or newly promoted Team Member is allocated an existing car, they should notify the Fleet/Benefits Officer of the mileage of the car and an estimate of their annual mileage to enable a revision to the contract to be put in place, if necessary. Page 14 of 33 01/07/2011

15 5.5.6 On promotion to a higher Grade, Team Members will retain their existing car until the expiry of the car s lease. Thereafter a new Benefit Car can normally be selected. The relevant cash allowance for down trading will be paid from the date of promotion and will continue until new Benefit Car is chosen A Team Member who is demoted to a Grade that is not eligible for a Benefit Car, will lose their eligibility to the Benefit Car and will not receive financial compensation for that loss. Three months notice of this change will normally be given. 5.6 Leavers Where a Benefit Car cannot be reallocated the early termination charges will be met by the previous driver s department Team Members who are leaving their employment with the Company are required to return their Company Car on their last working day. In certain circumstances, if the Team Member is entitled to a Company Car after their final day in active employment at the Company, the Company reserves the right to provide a cash amount or a rental car instead of the Company Car It is the Team Member s own responsibility to ensure that the Company Car is returned clean and undamaged. Any cleaning costs incurred by the Lease Provider in reinstating the car will be deducted from the Team Member s salary. 5.7 Up trading and down trading Team Members who are eligible for a Benefit Car may be entitled to choose a car available to Team Members who are one Grade above or below them at the absolute discretion of the Team Member s departmental Vice President. A table showing the contributions required to trade up and the cash supplements paid to trade down levels of Benefit Car are shown below. Page 15 of 33 01/07/2011

16 5.7.2 Grade Trade Up Contribution Trade Down Supplement Grade 1 SVP1 N/A 50 per month Grade 1 SVP2 Determined on individual basis 50 per month Grade 1 - VP Determined on individual basis 50 per month Grade per month (to Grade 1 VP only) 50 per month Grade per month 50 per month Grade per month N/A Team Members who would like to trade up or down can obtain a list of the relevant cars by contacting the Fleet/Benefits Officer The contribution for trading up and the cash supplement for trading down will normally be payable by / to the Team Member throughout the actual lease contract period for the car An exception to this is on promotion to a higher Grade, where the contribution for trading up to that Grade will be eliminated In the event of a driver leaving employment voluntarily before the end of the contract leasing period, the Company reserves the right to recover all or part of the additional lease costs from any monies owing to the driver. 5.8 Accessories Benefit Cars will be supplied with a CD player and Bluetooth (where standard) and an engine immobiliser. If Bluetooth is not standard in a car it will not be fitted in line with the Driver Safety Handbook If the selected Benefit Car can be supplied with metallic paint within the maximum benchmark lease price for the Team Member s Grade, the metallic paint is at no additional cost to the Team Member. However, opting for metallic paint on some cars will take the benchmark lease price over the maximum for that Grade. If this Page 16 of 33 01/07/2011

17 is the case, the Team Member will need to meet the cost of metallic paint and this cost will form part of the 600 described below. Alternatively, the Team Member can choose the vehicle in a non metallic colour (no cost option) to fall within your maximum benchmark lease price Team Members are permitted to add accessories to a Benefit Car up to a maximum value of 600. All accessories must be manufacturer-approved and authorised by the Fleet/Benefits Officer and by the Fleet Desk. Drivers must pay for these extras directly to the Lease Provider. If the accessories are not paid for within 28 days of a Team Member being invoiced by the Lease Provider, the Company will deduct the appropriate amount from the Team Member s salary. Should the driver leave the employment of Hilton before the end of the lease, no refund or compensation will be made to Team Members in respect of any costs incurred Team Members are permitted to purchase a built in satellite navigation system in addition to the permitted accessosries described in above. The satellite navigation system must be manufacturer approved and authorised by the Fleet/Benefits Officer and by the Fleet Desk. Drivers must pay for the satellite navigation system directly to the Lease Provider. If the satellite navigation system is not paid for within 28 days of a Team Member being invoiced by the Lease Provider, the Company will deduct the appropriate amount from the Team Member s salary. Should the driver leave the employment of Hilton before the end of the lease, no refund or compensation will be made to Team Members in respect of any costs incurred The Team Member will be required to meet any costs associated with fitting the accessories In all circumstances any accessories are not to be removed from the car at end of contract unless requested to do so by the Lease Company. If this occurs, the driver is to meet the cost of removal. No refund or compensation will be made to Team Members in respect of any costs incurred by the Team Member in any circumstances. Page 17 of 33 01/07/2011

18 5.8.7 Team Members are under no circumstances permitted to modify their Company Cars in any way, including modifications which could affect the cars performance and handling. 5.9 Replacement cars A courtesy car, if required in an emergency or in the event of the lease car being off the road, may be supplied for a maximum of two days. The Fleet/Benefits Officer will decide on the duration on a case by case basis In case of a prolonged period of replacement car being required, the Company may arrange for a replacement car of an appropriate grade which will be recharged to the Team Member s department and which has to be authorised by the Fleet/Benefits Officer Where a hire car is provided as a replacement car, this should be returned with a full tank of fuel at the end of the period of hire Purchase of Benefit Cars Benefit Cars are owned by the Lease Provider and revert to them at the end of the lease period for disposal. Team Members wishing to purchase a car at the end of the lease period should apply and deal directly (at their own risk) with the Lease Provider. Page 18 of 33 01/07/2011

19 6 Cash Allowance 6.1 Eligibility Please refer to the eligibility criteria in section 3 of this document for details of which Team Members are eligible for a Cash Allowance in lieu of a Benefit Car. 6.2 Electing to receive a Cash Allowance Eligible Team Members can elect to receive a cash allowance in lieu of a Benefit Car Team Members who elect a cash allowance retain the right to cancel their cash allowance and switch back to a Benefit Car. However, cancelling the cash allowance and switching to a Benefit Car will only be permitted during a defined time period each year. If a Team Member wishes to exercise this option, they will need to alert the Fleet/Benefits Officer between 1 March and 31 March each year. If a request is made during this period, the Team Member s cash allowance will be cancelled with effect from 4 April that year and they will become eligible for a Benefit Car from this date. Any requests made outside of the defined period will not be accepted Please note that although a new Benefit Car can be ordered during March, the lead times on new cars may mean that the Team Member s new Benefit Car will not be delivered until a later date. From 4 April the cash allowance will be cancelled and the Team Member will receive a temporary car until their new Benefit car is delivered. Team Members will be notified of the expected delivery date when they order their car It is important to note that Team Members who elect to switch from a cash allowance to a Benefit Car may be allocated an existing car from the unallocated car list. The Team Member will be required to use this car until it is due for renewal, at which point they will be able to choose an appropriate car. Page 19 of 33 01/07/2011

20 6.2.5 Team Members who elect to have a Benefit Car can only switch to the cash allowance on expiry of the full-term of the Benefit Car lease agreement. 6.3 Cash Allowance amounts The applicable annual cash allowances for each Grade are as follows: Grade Annual Cash Allowance Grade 1 SVP1 11,100 Grade 1 SVP2 9,900 Grade 1 VP 8,700 Grade 2 7,200 Grade 3 5,700 Grade 4 4, Team Members who opt for the cash allowance will not under any circumstances be entitled to a Company Car or a hire car paid for by the Company while receiving the cash allowance Cash allowances are reviewed annually in April and are paid monthly with salary, subject to income tax withholding ( PAYE ) and national insurance contributions ( NIC ). The cash allowance does not count towards the calculation of pension or any other salary-related benefits. Page 20 of 33 01/07/2011

21 7 Team Members using their own car for Company business use 7.1 Eligibility Team Members may use their own car for Company business purposes subject to the requirements set out below. Any Team Member who will be doing more than 10,000 business miles each year in order to carry out their job responsibilities effectively will be required to take a Job Car and should not be using their own car for Company business purposes Travelling to/from home to the office or base does not constitute business travel and cannot be claimed as business mileage. 7.2 Requirements for individuals who drive on Company business The Company has a duty of care to ensure that any Team Member who drives on Company business holds a valid driving licence. The Company has commissioned the Lease Provider to check driving licences of all Team Members who drive on Company business. Team Members will be contacted by the Lease Provider and it is compulsory to provide the information requested by the Lease Provider The Company will use the Lease Provider s Driver Risk Assessment to help meet its responsibilities and to help protect the Company and its Team Members against prosecution in the event of a Team Member being involved in a road traffic accident whilst driving on Company business. Any Team Member who is driving on Company business will need comply with this process. The Lease Provider will contact drivers with further details of the Driver Risk Assessment. This online solution will enable the Company to hold data on driving licence, motor insurance, MoT certificate, road fund licence and servicing for the cars that are being used for business purposes Any Team Member driving on Company business must ensure that they have adequate insurance cover for business use. Page 21 of 33 01/07/2011

22 7.2.4 It is the Team Member s responsibility to ensure that their car is kept in a legal and road worthy condition at all times It is the responsibility of the manager authorising a Team Member to drive their own car on Company business to notify the Team Member that they are required to comply with the above requirements. 7.3 Payment for business mileage Payment for all incurred business mileage should be made through the Company s expense claim procedures. This will follow the existing approval and payment routing for expense claims Where the Team Member concerned is not eligible for a Benefit Car or receives the cash allowance, reimbursement for the use of their personal car should be claimed through the expense procedures currently at the rate of 35p per mile, for up to 10,000 business miles each tax year Team Members who drive more than 10,000 business miles each year will be required to take a Job Car. If a Team Member is driving their own car and exceeds 10,000 business miles their situation will be reviewed and apart from in exceptional circumstances they will be required to take a Job Car. In the circumstance that the Company continues to reimburse the Team Member for business mileage in excess of 10,000 miles per year, the lower Approved Mileage Allowance Payment rate will be paid (currently 25p per mile) In every case it is the responsibility of the manager authorising the expense claim to be satisfied as to the justification of the business travelling and reasonableness of the amount claimed. Page 22 of 33 01/07/2011

23 7.4 Tax relief for business mileage Team Members are advised that tax relief may be available where the mileage payment is below the Approved Mileage Allowance Payments (AMAP) at rates published by the HMRC. For 2011/2012 the AMAP rates are 45p per mile for the first 10,000 miles and 25p per mile for each mile over 10,000 miles. You are strongly advised to check the HMRC website ( to confirm the AMAP rates to make sure your claim for tax relief is correct You will need to keep accurate records of all business miles in order to get tax relief on the difference between the AMAP and the payments by the Company and a claim should be made in the Employment Pages of the Self Assessment Return. Please contact your local tax office should you have any queries. Page 23 of 33 01/07/2011

24 8 Fuel 8.1 Team Members in receipt of a Fuel Card at 6 April Team Members who are in receipt of a Fuel Card for business use only should continue to use their Fuel Card for business mileage Team Members who are in receipt of a Fuel Card for business and private mileage at 6 April 2011 will continue to be eligible for this Fuel Card until they are promoted to a new position or they leave the Company HMRC treats the provision of private fuel through the use of a Fuel Card as a taxable benefit. If a Team Member determines that it is not cost-effective to receive the private fuel benefit (i.e. the tax on the fuel scale benefit is greater than the cost of fuel for private mileage), that Team Member is free to opt out of the Fuel Card. Please refer to section 8.6 below for further details Team Members can choose to opt out of the provision of private fuel at any time in the tax year and the tax will then be calculated on a pro rata basis. If a Team Member chooses to opt out then they are not eligible to reclaim any private mileage. Team Members are unable to opt back in The Company will pay no additional cash sum to Team Members foregoing the private fuel benefit. 8.2 Business mileage from 6 April From 6 April 2011, the Company will no longer provide drivers with Fuel Cards. Any business mileage claims should be made through the Company s normal expense procedures. Page 24 of 33 01/07/2011

25 8.2.2 Under no circumstances other than in the case of emergency are Team Members allowed to use their corporate credit card to purchase fuel. The Fleet/Benefits Officer needs to be notified by the Team Member if the corporate credit card has been used for an emergency. 8.3 Using a Fuel Card Fuel Cards must be signed on the reverse immediately on receipt to prevent fraudulent use When a Team Member uses the Fuel Card their car registration and the car s current total mileage must be provided to the cashier or, where applicable, entered at the pump each time the card is used Fuelling any car other than that allocated to the Fuel Card user by the Company will be treated as a serious disciplinary offence. The only exception to this is if a Team Member uses the Fuel Card for a rental car provided by the Company and has received approval from the Fleet/Benefits officer to use their Fuel Card. The Company is supplied with reports from the Fuel Card provider on a regular basis showing fuel consumption, registration and dates of use The Team Member is required to notify the Fleet/Benefits Officer of any emergency situations when the fuel card has been used and reimburse the Company in full If the Fuel Card is lost or stolen, the Team Member must notify the card provider immediately, and the Team Member must notify police and obtain a crime number. This must be given to the card provider and to the Fleet/Benefits Officer, who will issue a new card Fuel Cards must be returned to the Fleet/Benefits Officer upon termination of employment with the Company or if the Team Member is no longer in receipt of a Company Car. Page 25 of 33 01/07/2011

26 8.3.7 In the event of qualifying fuel payments needing to be made by means other than the Fuel Card, i.e. forgotten/ mislaid Fuel Card, garage that does not accept the card or overseas purchase the Team Member is able to claim their expenses through the Company s normal expense procedures. 8.4 Recording business mileage All Team Members who take a Fuel Card are required to keep proper and accurate records of business mileage and report their split of business and private mileage monthly. For the avoidance of doubt, travelling between your home and your base or office is always treated as private travelling. Please contact the Fleet/Benefits Officer for further details of the mileage reporting requirements. 8.5 Payment of fuel allowance for business mileage Team Members who drive a Company Car but do not receive a Fuel Card are eligible to reclaim fuel allowance at the advisory fuel rates published by HMRC ( for travelling on business purposes only. The advisory fuel rates from June 2011 are: Engine Size Petrol (incl. petrol hybrid cars) LPG 1400cc or less 15p per mile 11p per mile 1401cc to 2000cc 18p per mile 13p per mile 2001cc and over 26p per mile 18p per mile Engine Size 1600cc or less 1601cc to 2000cc 2001cc and over Diesel 12p per mile 15p per mile 18p per mile Page 26 of 33 01/07/2011

27 8.5.2 Payment for the fuel allowance will be made through the Company s normal expense claim procedures. This will follow the existing approval and payment routing for expense claims. In order to claim business mileage expenses the Team Member must have completed the relevant Driver Risk Assessment In every case it is the responsibility of the manager authorising the expense claim to be satisfied as to the justification of the business travelling and reasonableness of the amount claimed. 8.6 Fuel benefit for private mileage HMRC treats the provision of private fuel by the Company, through the use of a Fuel Card, as a taxable benefit Information on the tax/fuel benefit breakpoints is available through the Fleet/Benefits Officer. The decision Team Members take regarding fuel for private use will be influenced by a variety of changing personal factors and may have significant financial implications. Accordingly, the Company cannot provide advice to Team Members on these matters. Team Members who require assistance are recommended to seek advice from an independent source on these issues. Further details on the private fuel benefit charge can be found at: Choice of fuel Drivers may not fill up using Super Un-Leaded fuel or any high performance fuels apart from emergency situations, and endeavour wherever possible to not use motorway services as the costs are prohibitive. Page 27 of 33 01/07/2011

28 9 Health and Safety 9.1 General The Company is responsible for ensuring the health and safety of its Team Members. The Company seeks to ensure that any Team Members who drive on Company business: have the capability to drive safely; drive only safe cars which are properly maintained in accordance with manufacturer s instructions; are properly licenced to drive; and are fully insured for business use. 9.2 Driver Safety Handbook A copy of the Company s Driver Safety Handbook is included as an Appendix to this document. The Driver Safety Handbook is based on a Hilton Worldwide Risk Assessment and any Team Member who drives a Company Car or who drives on Company business is required to adhere to the detail set out in the handbook. Page 28 of 33 01/07/2011

29 10 Individual Responsibilities 10.1 Maintenance of Company Cars The Company Car driver is responsible for ensuring the safety of their car, mechanical soundness (including condition of tyres), external and internal cleanliness and complying with the requirements of all traffic laws and the conditions of contract lease agreement Servicing costs are included in the lease agreement and it is the Team Member s responsibility to ensure that the specified service schedule is followed. Any additional costs invoiced to the Company arising from the missed or late servicing will be recharged to the Team Member s department With this in mind, the Company Car driver is specifically responsible for the following:- (i) Maintaining and using the car in accordance with the manufacturer s instructions and the Driver Safety Handbook (please see Appendix). (ii) Arranging for periodic servicing at a garage approved by the Lease Provider. (iii) Advising the garage/nominated dealer that service work is to be authorised by the Lease Provider. It is also the responsibility of the individual to advise the garage/nominated dealer that once the work is authorised, invoices are to be sent directly to the Lease Provider. The driver is responsible for determining that all work has been carried out satisfactorily, i.e. properly serviced/repaired. The Fleet Desk will assist in the resolution of any disputes. Page 29 of 33 01/07/2011

30 (iv) Ensuring that replacement tyres and batteries are obtained from a source approved by the Lease Provider and is invoiced by the supplier to them. (v) Complying with the terms of the contract between the Company and the Lease Provider, the details of which will be notified to the driver at the delivery stage. (vi) Arranging the rectification of any minor damage when in doubt, refer to the Fleet Desk for assistance The Company reserves the right to inspect the cars as and when appropriate to assess the condition of these cars. In the event of the individual Team Member/driver not complying with the requirements noted above then action will be taken under the appropriate disciplinary procedure for the individual Team Member Maintenance of cars used for driving on Company business Team Members are required to adhere to the Driver Safety Handbook attached to this document (please see Appendix) Individuals who drive on Company business are strongly advised to take similar responsible care of their car. It is the Company s expectation that the Team Member s car will be of suitable condition during any customer contacts The Company reserves the right to inspect the cars as and when appropriate to assess the condition of these cars. In the event of the individual Team Member not complying with the requirements noted above, then action will be taken under the appropriate disciplinary procedure for the individual Team Member. Page 30 of 33 01/07/2011

31 10.3 Congestion/parking fines It is the Team Member s own responsibility to ensure that fines are paid promptly and in full. As registered keeper of the car, any fines will be sent to the Lease Provider or hire car company who will pay the fine directly to the issuing authority. The hire car company and/or Lease Provider will add an administration fee to the cost of any fines sent to them and this administration fee cost along with the cost of the fine will be deducted from the Team Member s salary. In some cases, the administration fee deducted from the Team Member s salary could be a minimum of Should you be in dispute regarding a ticket issued to you, you must write to the issuing authority without delay and advise the Lease Provider that you are in dispute and seeking to resolve the matter. Any increased costs incurred by non payment of fines are the responsibility of the Team Member Accidents The Company reserves the right to substitute or remove a car should the car be repeatedly misused or involved in a number of accidents in which the Company believes that the driver is at fault Insurance The Company's motor car insurance provides fully comprehensive insurance cover for the Company Car holder or their immediate partner, or any Company Team Member or any other authorised driver providing that they qualify under the detailed conditions set out in the Driver Safety Handbook. Only cars owned, leased, hired or lent to the Company are covered. Company Car drivers are not covered to drive any other car e.g. a friend s car Company Cars may not be used for the tuition of learner drivers, for hire, gain or reward, for participation in motor sport e.g. racing, speed testing or other form of Page 31 of 33 01/07/2011

32 motor trade purposes, nor in connection for business use other than that for the Company. Company Cars should not be used to pick up hitchhikers Failure to adhere to the above will result in the Team Member being held liable for any damage caused to the car Personal possessions are covered up to a limited value under the Company's motor insurance cover. Please contact the Fleet/Benefits Officer for further details. Team Members are encouraged to ensure that they arrange appropriate insurance for their personal possessions. Normally household risk policies cover this. All valuables should be removed from the car upon leaving it, i.e. laptops, mobile phones, wallets, bags, satellite navigation systems (where removable) etc. If it is not possible to take these items with you, they should as a last resort be locked securely out of sight in the car s boot Other Driver caused charges The Company reserves the right to recharge any Driver Caused Recharges such as lost keys to the Team Member Taking your car abroad - As the car is owned by our Lease Provider, permission must be gained from them, well in advance, before taking the car abroad. Please note that when abroad any person, not being the driver, aged under 25 must be accompanied by the driver in addition to complying with the requirements set out in Section 7 in the Driver Safety Handbook As the driver you must ensure that you comply with any local regulations that apply in the country you are driving in. Page 32 of 33 01/07/2011

33 11 Authorisation Procedures The Fleet/Benefits Officer or the Lease Provider will flag, on a monthly basis, cars coming up for renewal and provide further details of the ordering process to the driver as applicable Eligible Team Members will be able to order their Company Car using the Lease Provider s online system. All orders will need to be authorised by the Team Member s line manager and the Fleet/Benefits Officer Once ordered, a car or its specification cannot be changed Order progression, delivery and (where applicable) collection of the existing car will normally be agreed directly by the Lease Provider with the Team Member. Page 33 of 33 01/07/2011