Date ratified: 17 November Date issued: 17 November March 2013 (Document is not valid after this date) Review date: 31 December 2012

Transcription

1 TRAVEL AND LEASE CAR POLICY Version: 2 Ratified by (name of Committee): JNCC Date ratified: 17 Date issued: 17 Expiry date: 31 March 2013 (Document is not valid after this date) Review date: 31 December 2012 Lead Executive/Director: Name of originator/author: Target audience: Human Resources Director Human Resources All PCT Staff

2 CONTRIBUTION LIST Key individuals involved in developing the document Name Human Resources JNCC Designation Human Resources Director Staff Side Chair Circulated to the following individuals for consultation Name Human Resources JNCC Designation 1

3 WORCESTERSHIRE PRIMARY CARE TRUST TRAVEL AND LEASE CAR POLICY CONTENTS 1 INTRODUCTION 4 Page No. 2 PRINCIPLES 4 A PART ONE TRAVELLING EXPENSES A1 DEFINITIONS 5 A2 REIMBURSEMENT OF TRAVELLING EXPENSES 8 A3 ATTENDANCE AT WORK OUTSIDE NORMAL WORKING HOURS 9 A4 TEMPORARY TRANSFER 9 A5 CHANGE OF BASE RESULTING FROM ORGANISATIONAL CHANGE 9 A6 PROCEDURE FOR CLAIMING TRAVEL EXPENSES 10 A7 PROCEDURE FOR CLAIMING EXCESS INSURANCE CHARGES 10 B PART TWO LEASE CAR SCHEME B1 DEFINITIONS 11 B2 GENERAL 11 B3 RANGE OF VEHICLES 11 B4 INSURANCE 12 B5 QUOTATION/APPLICATION PROCEDURE 12 B6 USER'S OBLIGATIONS 12 B7 REPAIR ARRANGEMENTS 13 B8 DURATION OF HIRE 14 B9 PAYMENTS BY USER 15 2

4 B10 B11 BUSINESS MILEAGE ALLOWANCES AND REIMBURSEMENT 17 VEHICLE EXCISE LICENCE AND ROADSIDE ASSISTANCE MEMBERSHIP 17 B12 OWNERSHIP OF THE VEHICLE AND SEIZURE 17 B13 TERMINATION ARRANGEMENTS 18 SCHEDULES A SCHEDULE OF ALLOWANCES 20 B ELIGIBILITY FOR A LEASE CAR 23 CI LEASE CAR CHARGES AND ALLOWANCES 24 CII BUSINESS MILEAGE REIMBURSEMENT CALCULATION 25 CIII WORKED EXAMPLE 26 D INSURANCE 28 E COMPANY CAR TAX 30 3

5 1 INTRODUCTION WORCESTERSHIRE PRIMARY CARE TRUST TRAVEL AND LEASE CAR POLICY 1.1 This policy specifies the arrangements and conditions for the payment of travel expenses to all staff employed by the PCT, except where national terms and conditions of service apply and are more favourable; or providing vehicles to employees under the employing organisation s Lease Car Scheme. 1.2 Employees applying to participate in the Lease Car Scheme will be required to sign a formal agreement if their application is accepted. 1.3 From the 1 st July 2008 the following arrangements will apply to all staff employed by the PCT who are required to undertake any travelling as part of their official duties unless otherwise specified within this policy. 2 PRINCIPLES The governing principles are as follows: 2.1 It is the responsibility of the PCT to provide its staff with the necessary equipment to undertake their job. This will include the provision of a car under the lease arrangements or payment of mileage under the national conditions for use of their own vehicle where it is necessary to have a car in order to carry out the duties and responsibilities of the post. 2.2 If there is a requirement to use a car, whether a lease car or a member of staff s own car, the member of staff concerned should not suffer a financial loss. 2.3 Individual staff groups shall not be treated differently regarding reimbursement under this policy, except where national terms and conditions of service apply. 2.4 There will be a review of the policy and the rates therein annually and, where appropriate in exceptional circumstances. However, rates under the national terms and conditions will be reviewed by the national council All staff will have the necessary information available so as to be able to make an informed choice as to whether they receive reimbursement of expenses under this policy or are entitled to a lease car under the Lease Car Scheme. 4

6 Anyone claiming mileage must have a valid driving license. Where staff are using their own vehicle, they must ensure they have insurance which covers business use. This will also apply to any vehicle being used on a temporary basis. PART ONE TRAVELLING EXPENSES A1 DEFINITIONS A1.1 Public Transport Mileage Rate Standard or regular user rates of mileage allowance shall not apply if a member of staff uses a private motor vehicle in the following circumstances excess daily travel i.e. additional mileage travelled to and from work due to a change of base as the result of organisational change. course travel unless the course is classed as Statutory or Mandatory Training as per the Study leave Policy. In these circumstances Public Transport Rate will be paid unless this is higher than the Standard or Regular User rate for the appropriate engine band, when the lower rate will be paid. A1.2 Regular User Allowance A1.2.1 The allowances in Schedule A shall be paid to those staff who qualify in accordance with the criteria detailed below as regular car users and who do not have a lease car, even though they are required by the Trust to travel on business and, in so doing, either: travel an average of more than 3,500 miles a year, or travel an average of at least 1,250 miles a year and necessarily use their car an average of three days a week, or travel an average of at least 1,000 miles a year and spend an average of at least 4 days per week on such travel including the duties performed during the visits, or spend an average of at least 50% of their time on such travel including the duties performed during the visits, or are Consultants classified as an essential user, i.e. i) travels at least 1,250 miles (excluding normal travel, home/practice to base) each year AND 5

7 ii) has ultimate clinical or on-call responsibility AND iii) is expected to be recalled to hospital on emergency on average at least twice a week, or are community doctors whose duties require them to pay frequent visits to places away from their principal place of work (e.g. to clinics, schools, residential establishments and other places, for instance, in connection with the control of infectious diseases and food poisoning). Staff with a single contract of employment for less than one hour (e.g. bank staff) are not eligible for regular user allowance. A1.2.2 If there is a change in a member of staff s duties or if the annual official mileage falls below that on which a regular user classification was based, the continued application to the member of staff of the Regular User allowance shall be revised: a) where the change has occurred at the Trust s request, the Trust allowance will be continued; b) where the change has occurred at the member of staff s own volition, the allowance will be discontinued. The Finance Department will be responsible for notifying budget managers where a member of staff s status as a Regular/Standard User has changed, the budget manager will determine any appropriate changes to user status and inform the Payroll Services Manager. Any decreases in the annual official mileage or the frequency of travel which is attributable to either prolonged sick leave or the temporary closure of one place of duty should be ignored for this purpose. A1.2.3 Payments of the annual lump sum allowance shall be made in equal monthly instalments over a period from 1 st April in any year to 31 st March in the succeeding year. In the case of staff who take up an appointment with the Trust or leave the employment of the Trust after 1 st April in any year, the total allowance payable should be calculated that the amount payable is directly proportionate to a full year s allowance. The calculation of the mileage allowance should thus be in accordance with the following procedure: the mileage allowance to be paid at the higher rate would, at 9,000 miles per annum, be equivalent to 750 miles per month of service. The excess over 750 miles per month of service would be paid at the reduced rate. For example, where the total service in the period 1 st April in any year to 31 st March in the succeeding year is five months, then up to 3,750 miles would be paid at the higher rate and any excess at the lower rate. Similarly the lump sum should be divided into twelve monthly payments. 6

8 Part months of service shall be regarded as complete months. However, a regular user who leaves the service of one Trust and enters the employment of another authority during the same month shall receive only one lump sum instalment for that month, payable by the former Trust. A1.2.4 Where staff entitled to the regular user allowance do not use their car: a) as a result of mechanical defect or absence through illness; the lump sum payment should be paid for the remainder of the month in which the car was out of use and for a further three months thereafter. For the following three months, payment should be made at the rate of 50% of the lump sum payment. No further payments should be made if the car is out of use for six months or longer. b) as a result of absence on maternity leave; where maternity leave is granted, the lump sum payment should be paid for the remainder of the month in which the car was out of use and during the period of paid maternity leave. Payment should be made at the rate of 50% of the lump sum payment for a further three months or until the end of maternity leave, whichever is less. No further payment should be made if the car is out of use for a longer period. Members of staff not intending to return to work should have payment limited to the period of paid maternity leave. c) as a result of attendance on approved training course; the lump sum payment shall continue to be paid throughout the period of attendance on the approved training course. A1.3 Standard Mileage Rate The allowances in Schedule A shall be paid to staff who use their own vehicles for journeys other than where Public Transport Rate, Regular User Rate or Lease Car Rate is applicable. A1.4 Lease Car Rate For more detailed information regarding the calculation of this rate and other guidance, please refer to Part Two. A1.5 Other Allowances A1.5.1 A1.5.2 Subject to the production of vouchers wherever possible, staff travelling as part of their duties shall be refunded parking expenses and charges for tolls and ferries necessarily incurred. Staff using pedal cycles as part of their duties may be reimbursed at the rate in Schedule A. 7

9 A1.6 Return to Work/On call A1.6.1 A1.6.2 Return to work is defined as being where staff are required to return to or to attend their place or work outside their normal hours of duty in circumstances where they would be entitled to overtime or time off in lieu. The rates for reimbursement can be found in Schedule A. On-call is defined as being where staff are required to be on an on-call rota and are requested to undertake work at their place of work or other Trust premises. The rates for reimbursement can be found in Schedule A. A2 REIMBURSEMENT OF TRAVELLING EXPENSES Reimbursement of travelling expenses for journeys, other than journeys for which members of staff use their private motor vehicles, shall be governed by the following rules: A2.1 Payment shall be made in respect of expenses necessarily incurred by a member of staff travelling on business approved by the Trust. A2.2 Expenses incurred in travelling from holiday leave to duty, or vice versa, shall not be allowed unless the member of staff was recalled. A2.3 Staff who are based at a designated base shall be paid the Regular User, Standard Rate, Public Transport Rate or Lease Car Rate as appropriate for whichever is the less of: Actual Journey The distance actually travelled by the shortest practicable route leaving home to all place(s) necessarily visited in the order visited, arriving back home (excluding any private mileage), or Official Journey the return distance by the shortest practicable route from base to place(s) visited and return to base (excluding mileage in respect of lunchtime or any other private mileage). Staff who are officially based at home shall be paid the Regular User, Standard Rate, Public Transport Rate or Lease Car Rate as appropriate for all journeys made by the shortest practicable route from their home to all places necessarily visited, in the order visited, arriving back home. A2.4 Second class fares only shall be payable to members of staff, however staff can use first class but must pay the difference themselves. All members of staff shall take the fullest possible advantage of any available cheap fares. A2.5 Taxi fares shall be payable only in cases of urgency or in other cases in which transport is reasonably required and an adequate public service is not available, but where these conditions are not fulfilled members of staff using a taxi shall be entitled to claim the sum they would have paid had they travelled by public transport. A2.6 Payment for travel by a hired motor vehicle other than a taxi shall not exceed the mileage allowance which would have been payable had the vehicle 8

10 belonged to a member of staff who hired it; provided that where the Trust so approves, payment be increased to an amount not exceeding the actual cost of the hiring. Arrangements for hired vehicles should be made through the Lease Car Administrator. A2.7 Payment of travel by air shall not exceed the cost of travel by appropriate alternative means of transport together with an allowance equivalent to the amount of any saving in subsistence expenses consequent on travel by air; provided that where the Trust decides that the saving in time is so substantial as to justify payment of the fare for travel by air, there may be paid an amount not exceeding: the ordinary, or any available cheap fare for travel by regular air service; or where no such service is available or in case of urgency, the fare actually paid by the member of staff. Circumstances requiring air travel need approval in advance by the Chief Executive. A3 ATTENDANCE AT WORK OUTSIDE NORMAL WORKING HOURS A3.1 Staff who are required to return to or to attend their place of employment outside their normal hours of duty shall be reimbursed any expenses which are in excess of those incurred as a result of their normal attendance at work and which are actually and necessarily incurred in travelling to and from home. Claims for expenses should not be met when no additional expenditure is incurred, e.g. when the members of staff concerned have a season ticket, or where the time lapse between the two periods is sufficiently short for it to be considered reasonable for the member of staff to remain at or near their offices. A4 TEMPORARY TRANSFER A4.1 Staff (whether single or married) who are required by the Trust to carry out temporary duties at a place other than their permanent place of employment, and who travel daily to their temporary headquarters whilst continuing to live near their permanent headquarters, may be reimbursed their excess travelling expenses on the basis of the public transport mileage rate or lease car mileage rate. A5 CHANGE OF BASE RESULTING FROM ORGANISATIONAL CHANGE A5.1 Staff who are required to change their base as a result of organisational change may be reimbursed the whole of their extra daily travelling expenses, in accordance with the Trust s Protection of Pay and Conditions of Service Agreement, from the date of transfer to the new headquarters. The excess shall be calculated on the basis of bus fares or second class rail fares or, if the member of staff travels by a private vehicle, on the basis of public transport mileage rate or lease car mileage rate. The calculation for 9

11 reimbursement is the difference between home to new base mileage less home to former base mileage. A6 PROCEDURE FOR CLAIMING TRAVEL EXPENSES A6.1 All staff should complete a Travel Expenses Claim Form every month detailing all travel expenses, accompanied by vouchers where appropriate. These forms should be submitted in accordance with the locally agreed procedures. A6.2 Claims should be submitted on a monthly basis and certainly no more than two months following the month end of the period claimed. Staff who regularly fail to submit claims monthly will be advised that there is a three month limit on submission unless there are extenuating circumstances. All claims MUST be submitted before the end of the financial year. A7 PROCEDURE FOR CLAIMING EXCESS INSURANCE CHARGES A7.1 Staff who use their own private vehicles, and have an accident whilst on official business for the Trust, may reclaim the excess insurance charge up to the amount designated for lease car users, see Schedule D. A7.2 Staff in such circumstances should complete a losses form in the usual manner. 10

12 PART TWO LEASE CAR SCHEME NOT YET COMPLETED B1 DEFINITIONS B1.1 Definitions used within the document are as follows: OWNER: INSURERS: USER: Means the Owner specified in the relevant Agreement. Means the Insurance Companies or underwriters of a vehicle from time to time. Means an employee who joins the Scheme and who is named in the relevant Agreement. B2 GENERAL B2.1 All necessary documentation will be available to all staff prior to signing any agreements, so as to ensure that staff are able to make an informed choice. B2.2 An employee joining the scheme will be required to sign an agreement for three years or, where such an employee has accepted an offer to take a vehicle following early termination of a lease by another user, for that part of the prior agreement unexpired at such termination. B2.3 During the period of an agreement, the vehicle remains the property of the Owner and the user has no authority to dispose of the vehicle or parts of it. B2.4 Employees whose contract of employment is for less than three years will not normally be eligible to join the scheme unless a vehicle can be located which is due to be returned before the end of its lease agreement. Enquiries should be made in the first instance to the Lease Car Administrator. B2.5 The lease car arrangements will apply to all new lease car users and to existing users as their lease comes up for renewal. B2.6 Terms and conditions of this scheme may be revised from time to time in line with legislative changes. Any other changes will be part of the annual review. B3 RANGE OF VEHICLES B3.1 It is intended that users will have a choice of vehicle within the Trust's contract with suppliers. Certain vehicles may prove to be less expensive and more readily available. B3.2 Vehicles provided under the scheme will be to manufacturer's standard specification for the model chosen. B3.3 All accessories fitted before delivery, over and above the manufacturer's specification for the vehicle, will be paid for by the user. Other items may be fitted by the user with the consent of the owner at his/her own expense but if 11

13 they are removed at the expiry or other termination of the agreement, the user shall be liable for the cost of making good any damage caused to the vehicle by the removal of such fittings. B3.4 The Trust would fund any modifications, or a change of vehicle, required to enable disabled employees to continue in their Trust employment. B4 INSURANCE B4.1 The User will be responsible for any excesses payable in the event of accidental damage or theft under the terms of the policy. See Schedule D for details of the insurance policy cover. B4.2 As with all insurance policies there is an excess in the case of claims. However if the incident occurs whilst on official business the Trust will meet the cost of the excess. If the accident occurs when the car is not being used on official business, the employee will be required to meet the excess. Any accidents should be reported to the Lease Car Administrator as a matter of course. B5 QUOTATION/APPLICATION PROCEDURE B5.1 Eligible employees who wish to receive a quotation for a vehicle must complete an application form, which needs to be authorised by their manager and sent to the Lease Car Administrators, along with a copy of the driving licence for all named drivers. B5.2 A quote is calculated by the Lease Car Administrators and returned to the employee with an agreement form. B5.3 If an employee wishes to proceed with the offer he/she must complete and sign the form and return to the Lease Car Administrator. This agreement is then authorised by the Finance Director and this then constitutes a formal agreement between both parties that will be effective from date of signing and for three years (or such period as agreed by the Trust) from the date of delivery of the vehicle. B5.4 An employee may elect not to proceed with the offer upon receipt of the agreement. See Schedule C for charges and allowances. B6 USER'S OBLIGATIONS The user must: B6.1 Notify the Lease Car Administrator of any faults in the vehicle on delivery and report in writing any faults in the vehicle that appear during the running in period. In the event of any dispute, the Trust will nominate an officer to adjudicate and resolve the matters on behalf of the Trust. 12

14 B6.2 Throughout the period of the agreement, notify the Lease Car Administrator promptly in writing, any defects or problems as they occur, if these become apparent to the user. B6.3 Ensure that routine servicing and maintenance are carried out by an approved garage at intervals recommended by the manufacturer. B6.4 Permit persons authorised by the Trust to inspect the vehicle at any reasonable time. B6.5 Not modify or alter the vehicle or remove parts from it nor change any of the identification marks or numbers without the consent of the owner (viz. the lease car supplier). B6.6 Endeavour to keep the vehicle garaged overnight, where possible, and at all times parked in a way that minimises the risk of theft or damage. B6.7 Keep the vehicle clean and at regular intervals check and maintain the fluids, tyre pressures and tyre condition. B6.8 Pay the Trust any agreed amounts due. B6.9 Pay all parking fines incurred in respect of the vehicle during the period of the agreement. B6.10 Pay for all petrol and oil required for maintaining correct levels between servicing. B6.11 Not disconnect or in any way tamper with the vehicle's mileometer. Mileometers will be subject to check by the Trust's officers. B6.12 Not breach any provision of the Lease Car Scheme Agreement or the "Driver's Pack" as supplied with the vehicle. B6.13 Pay the cost of repairs not met by the Insurers or the owner, such as where the employee is deemed to be negligent. However, there will be an appeal mechanism where this is thought to be unfair and advice will be sought from an independent organisation, which has no connections with the owner of the vehicle. B6.14 Ensure the vehicle is always available for use, under normal circumstances, when required for business purposes. B6.15 If the vehicle is not to be purchased at the end of the agreement, to return it to the Lease Car Administrators in good condition, complying with the "Fair Wear and Tear Guide" issued by the BVRLA (British Vehicle Rental and Leasing Association). B7 REPAIR ARRANGEMENTS B7.1 Details of how to obtain free repairs and servicing are included in the "Driver's Pack" supplied with the vehicle. Users are responsible for dealing with repair 13

15 and service arrangements in accordance with the said "Driver's Pack" and must familiarise themselves with the contents of the pack on receipt of the vehicle. Failure to comply with the pack's instructions may result in the user incurring expenditure that would otherwise have been met by the owner. B7.2 In the case of repairs necessitated by accidents, where possible, the cost will be recovered from the Insurers and the user is required to co-operate with the Trust in obtaining the maximum redress in this way. B7.3 These repairs will be carried out at the expense of the Insurers or the user, subject to the rules in Section 6 above. B7.4 When a vehicle is involved in any accident or damaged, the Lease Car Administrator must be advised as soon as practicable by telephone. An Accident Report Form must be completed and returned to the Lease Car Administrator as soon as possible after the accident. If the person who was driving the vehicle at the time of the accident receives any warning of intended prosecution; a summons in respect of any offence; a summons to appear at an inquest or a claims letter from a third party's agent or solicitor, then any such document should be promptly forwarded to the Lease Car Administrator with a note relating it to the accident report. The Lease Car Administrator will advise the user of the steps to be taken to repair the vehicle. B7.5 The Trust as part of the lease contract will arrange for replacement vehicles for lease cars off the road for service or repair. B7.6 If a damaged vehicle is deemed unrepairable by the Insurers then it may be replaced. Such replacements may be new and will be similar but not identical to the original vehicle. B7.7 On all such occasions, the user must confirm in writing to the Lease Car Administrator that repairs have, or have not, been satisfactorily completed as far as the user can reasonably judge. B7.8 All repairs (except under B7.9 below) and all servicing shall be carried out at garages approved by the owner. B7.9 Emergency work likely to exceed excluding VAT to be performed by a garage not nominated by the Trust must, if practicable, be approved (by telephone) by the Lease Car Administrator before work commences. B7.10 The User must personally meet costs incurred at garages not approved by the Trust and obtain the repairer's itemised receipted invoice and send this to the Lease Car Administrator who will seek reimbursement from the owner as quickly as possible. B8 DURATION OF HIRE B8.1 The use of a vehicle under the Scheme will (subject to conditions under section B13) continue for a period of three years commencing with the date of delivery to the user of the vehicle. 14

16 B8.2 At the end of each three year agreement period, the user will be given, subject to approval procedure, the option to choose another vehicle and enter into a new agreement for the next three year period; or to revert to using their own vehicle and receiving reimbursement of appropriate travelling expenses. B8.3 Employees who would be unable to enter into a three year agreement due to a short term contract; planned retirement; or termination are not normally eligible to participate in the scheme. However, the Trust will make alternative arrangements for this period. Employees should contact the Lease Car Administrator for advice. It would not be possible to offer employees their choice of vehicle in such circumstances. B9 PAYMENTS BY USER The user agrees to pay: B9.1 Any agreed deduction from wages/salary, to the Trust: a composite annual charge for private use. This comprises the sum of items listed in Schedule C. The composite annual charge shall be paid by monthly deductions from salary or weekly deductions from wages of the total, commencing with the first available payroll after the date of delivery. B9.2 Any variation to the rental that results from an annual review of actual business and private mileages. Rentals will be adjusted as appropriate by agreement with the user. B9.3 Any over or under payment of the employee's contribution upon termination or expiry of the agreement. A final review of both business and private mileages will be undertaken when the vehicle is returned and the appropriate adjustments made for private mileage. B9.4 All sums which the Trust becomes liable to pay by way of: penalty, damages or fines e.g. for parking, speeding, etc. which may be incurred by the Trust in respect of the vehicle during the term of the relevant agreement; or any costs, charges or expenses incurred by the Trust in respect of taking or defending any legal proceedings connected to the above up to any amount which could be recovered by the insurance policy relating to the vehicle. B9.5 Any expenses incurred by the Trust in making good any failure by the user to comply with these rules. B9.6 Any expenses incurred by the Trust in ascertaining the whereabouts of and/or recovering or attempting to recover the vehicle from the user or any person, firm or place. B9.7 Any sums that become due to the Trust arising from the early termination of the Agreement, subject to termination clauses. 15

17 B9.8 Interest at the Bank's personal loan rate calculated on a daily basis of any sum due remains unpaid for more than 21 days over the due date. B9.9 In the event of the user leaving the employment of the Trust, it is empowered to arrange deductions from any wages, salary or other payment due to the user any sums remaining outstanding under the agreement. B9.10 The composite annual charge in B9.1 will be adjusted, if during the period of the agreement, there are any variations in: The Trust's motor insurance premiums. Vehicle excise licence. Any other taxes in respect of vehicles. VAT. B9.11 If the Trust is required by law to incur any expenses in fitting any accessory or modifying the vehicle in any way then the charges to the user under the scheme rules will be altered in a manner that reflects the total cost to the Trust of such variations. In such cases, the employee's contribution will relate to his/her private mileage and the employee will be informed of the amount concerned. B9.12 In the event of the employee's death in service or on early termination of the employee's employment contract on the grounds of ill health, there shall be no financial penalty to the employee or to the employee's estate because of the early termination of the agreement. In the event that the employee is absent from work for an extended of leave an employee who has contracted for private use of a vehicle may choose to continue the private use at the contracted charge or to return the vehicle to the employing Trust. B9.13 In the event of an employee changing duties which affect the level of business mileage the following will apply: a) where the change has occurred at the Trust s request, an employee who has contracted for private use of a vehicle may choose to continue the private use at the contracted charge or return the vehicle to the employing Trust; b) where the change has occurred at the employee s own volition, the employee will be responsible for any penalty charges incurred by the Trust. B9.14 In the latter case, there shall be no financial penalty to the employee because of early termination of the agreement where the absence extends into the half pay period. B9.15 If a user is suspended from his/her duties during currency of the agreement, he/she continues the private use. If his/her employment is subsequently terminated by resignation or dismissal, the user shall pay the Trust any termination agreements 16

18 B9.16 Users may be liable for assessment of additional income tax in respect of taxable benefits arising from the provision of a vehicle under the scheme. Employees are recommended to clarify their personal tax position with the Inland Revenue before signing an agreement. B10 BUSINESS MILEAGE ALLOWANCES AND REIMBURSEMENTS B10.1 The user shall be entitled to claim an allowance for business mileage at a rate in accordance with the rules of the Scheme upon submission of the Lease Car travel claim form showing details of journeys in accordance with existing procedures. B10.2 If the user chooses to use an alternative vehicle for business travel, when the lease car is available, it shall be insured for business use and the user shall be entitled to claim an allowance for business mileage at the same rate as that applicable to the Lease Car. B10.3 Where the user uses his/her own vehicle while the vehicle is being repaired or serviced or whilst awaiting a replacement vehicle, he/she will be paid a mileage allowance by the Trust at its public transport rate. B10.4 Where the user is required to undertake emergency or non-emergency call-outs in the course of the user's duties an allowance shall be paid on the same basis as in condition B10.1 above. B10.5 Where there is any delay in the processing of forms necessary for the completion of the agreement, reimbursement of any travelling expenses for the use of the employee's own vehicle will be at the appropriate rates. B11 VEHICLE EXCISE LICENCE AND ROADSIDE ASSISTANCE MEMBERSHIP B11.1 The Trust will ensure that every vehicle is covered by a current vehicle excise licence throughout the period of the agreement. The vehicle must not be used un-taxed nor must it be used without a requisite test certificate. If, on the expiry of a vehicle licence, the user has not received a replacement licence, the user must notify the Lease Car Administrator. The Trust's failure to produce these items would not exempt the user from conviction if he/she unlawfully uses the vehicle. B11.2 The Trust will ensure that all vehicles are covered by membership of a roadside assistance scheme. B12 OWNERSHIP OF THE VEHICLE AND SEIZURE B12.1 Vehicles will at all times remain the property of the relevant owner and the user will have no authority to sell, charge, pledge, assign or part with possession of a vehicle or to deal with it in any manner that is inconsistent with the owner's title to it. B12.2 The user will be expected to take all reasonable steps to keep the vehicle free from seizure and distress for rents, taxes, executions or other legal process and if for any reason the vehicle (whether under legal process or not) shall be 17

19 seized or taken out of the possession or control of the user, then the user must immediately inform the Lease Car Administrator. B13 TERMINATION ARRANGEMENTS B13.1 The user's right to use the vehicle will cease at the expiration of the period of agreement and the following procedures apply: B If any user wishes to continue to participate in the scheme they will enter into another agreement with the Trust in relation to a replacement vehicle. B If there is to be no further agreement, the vehicle must be returned in accordance with the owner's instructions. B The user may be able to purchase the vehicle from the owner at its current valuation as decided by the owner. B The user may choose to use his/her own vehicle and to revert to the appropriate rate. B13.2 The agreement will terminate immediately if: B The Insurers advise that the vehicle is damaged beyond economic repair or is stolen and will not be recovered. B The user's employment with the Trust terminates. B The user becomes disqualified from driving or for any reason does not hold a valid licence entitling him/her to drive. B The user ceases to be an eligible employee for the purpose of the scheme other than pursuant to a compulsory change in post and/or duties introduced by the Trust. B The user dies. B13.3 The Trust may, by notice to the user, terminate the agreement at any time after the occurrence of the following: B Serious or persistent breach by the user of the terms of the agreement of these conditions. B Wilful neglect of the vehicle. B13.4 If the user leaves the employment of the Trust for whatever reason or if the Trust terminates the agreement under any provision of clause B and B13.2.4, the Trust is prepared, at the user's request, to consider one of the following options if the owner consents: B The user may be able to purchase the vehicle at its current valuation, as decided by the owner, including an early termination penalty if applicable. 18

20 B The new employer (if appropriate) may agree to accept responsibility for the vehicle. B The owner may agree to the user undertaking full responsibility for the hire arrangement for the remainder of the hire period. B Another employee may agree to accept the vehicle for the remainder of the hire period. B The vehicle may be returned to the owner, an excess charge may be made by the owner dependent upon circumstances. The charge will be met by either the user or the Trust dependent upon termination circumstances. B13.5 On return of the vehicle it will be given an initial appraisal by the Lease Car Administrator. The Lease Car Administrator will highlight to the driver any noticeable damage but they cannot be held responsible if the Leasing Company, on collection of the vehicle, highlight any further damage, which is deemed to be above "fair, wear and tear". The user will be required to reimburse the owner and/or the Trust for the cost of any repairs needed to bring the vehicle into a satisfactory condition consistent with age and mileage of the vehicle. This shall not apply to defects or want of repair notified to the owner by the user on delivery pursuant to the requirements of the said "Drivers Pack". The Lease Car Administrator will make every possible effort to mitigate such costs. B13.6 If the user is dissatisfied with the allocated vehicle for reasons other than its safe performance on the road, the Trust will make reasonable attempts to remedy the situation. B13.7 If a lease car is returned before the end of the lease, the employee will normally be required to pay the penalty demanded by the leasing company for the early termination of the contract. However in the following cases the Trust will meet the cost of that termination penalty: B If the Trust requires the car to be returned early, for example if the Trust reorganises its services B If the employee leaves or retires on health grounds B If the employee is on long term sick leave and into half pay or, exceptionally no pay but will be returning to work, an application may be made to the manager to return the car at no penalty cost to the individual. B If the employee dies in service. B Any employee who has a lease due for renewal and intends to retire before the new lease has expired should inform the Finance Department of this before taking on the new lease to see whether there is any way of avoiding the employee having to pay the penalty for surrendering early. The Trust will not automatically pay the penalty for them. 19

21 SCHEDULE OF ALLOWANCES SCHEDULE A MILEAGE ALLOWANCES 1 Public Transport Rate 24 p per mile 2 Passenger Rate 5 p per mile 3 Lease Car Rate 15 p per mile 4 Regular User Allowances (Motor cars with 3 or 4 wheels) a) All staff except hospital medical and dental staff Engine capacity: 501 to 1000 cc 1001 to 1500 cc Over 1500 cc Lump sum Up to 9,000 miles 29,7 p 36.9 p 44.0 p Thereafter 17.8 p 20.1 p 22.6 p NOTE: A member of staff using a 4-wheeled car under 501 cc shall be paid the allowances for cars of 501 to 1000 cc engine capacity. b) Hospital medical and dental staff Engine capacity: Over to 1000 cc to 1500 cc to 2000 cc 2000 cc Lump sum Up to 9,000 miles 29.7 p 36.9 p 44.0 p 44.0 p 9,001 15,000 miles 17.8 p 20.1 p 22.6 p 22.6 p Thereafter 17.8 p 20.1 p 22.6 p 22.6 p 5 Standard Rates a) Motor cars with 3 or 4 wheels: Engine capacity: 501 to 1000 cc 1011 to 1500 cc Over 1500 cc First 3, p 47.3 p 58.3 p miles Thereafter 17.8 p 20.1 p 22.6 p 20

22 aii) Hospital medical and dental staff Engine capacity: Over to 1000 cc to 1500 cc to 2000 cc 2000 cc Upto 3,500 miles ,501 9,000 miles ,001 15,000 miles Thereafter NOTE: A member of staff using a 4-wheeled motor car under 501 cc shall be paid at the rate for cars of 501 to 1000 cc engine capacity. b) Other motor vehicles: Rate per mile Engine capacity: 125 cc or less Over 125 cc Up to 5000 miles 17.8 p 27.8 p Over 5000 miles 6.7 p 9.9 p Pedal cycles: 10.0 p per mile 21

23 The following summarises the circumstances, which dictate the application of the appropriate mileage rate, according to the conditions outlined in the Policy: Regular Standard Public Lease Car Tax Transport Official X X X X Determined by IR through tax code ℵ Excess X X PAYE On-call X X X PAYE I I Courses X X X X Determined by IR through tax code ℵ Return to work X X X PAYE I ℵ I The Inland Revenue adjusts a member of staff s tax code in the follow year. PAYE is processed by the Payroll Department and tax is deducted from salary in the following month. NB. All expense payments are reported annually to the Inspector of Taxes whether Tax/NI has been deducted through PAYE or not. 22

24 SCHEDULE B ELIGIBILITY FOR A LEASE CAR A B From 11 th December 2000, the date of this agreement, any employee who travels 3,000 or more miles each year on official business will be offered a lease car. Any mileage resulting from attending courses will not count towards the 3,000 miles. If, on this date, staff are already classified as Regular Users and are on Whitley conditions, they may continue to receive the Regular User Lump Sum and allowances FOR AS LONG AS THEY REMAIN IN THE SAME POST AND CONTINUE TO MEET THE CRITERIA FOR REGULAR USER. Details will be provided to managers annually. From the date of this agreement any existing member of staff who is on the Standard Rate on Whitley conditions will be offered the option of a lease car if they reach 3,000 business miles. If they choose not to have a lease car they may remain on the Standard Rate until they qualify for Regular User as defined within Whitley. However this protection applies to the job they were in at the date this agreement is introduced. Similarly if they move onto Regular User or accept a lease car and, through no choice of their own the job is changed and their mileage drops they will have a personally protected option to return to the Standard Rate under Whitley. However this protection is only offered on the job occupied at the date this agreement is introduced unless an employee is subsequently moved into another post as a result of internal changes and through no choice of their own. If they choose to apply for a new job, Trust conditions will apply. 23

25 SCHEDULE C(I) CHARGES AND ALLOWANCES Fixed Charges (Annual Sum) (i) Road Fund Licence variable dependent on cc (ii) Insurance /01) (iii) Handling charge /01) Payment for business miles based on a rate of 6p per mile Trust Allowances Public Transport Rate Mileage Rate 23.0p The employee s allowance against the cost of a lease car will be based on the following Regular Users Allowance: Lump Sum Mileage Rate p Rental Calculations (i) (ii) (iii) (iv) (v) (vi) The monthly rental is calculated by deducting the Trust allowance from the total cost to the Trust, adding VAT and dividing the result by twelve. The total cost to the Trust is the sum of the fixed charges and the rental charged by the finance company (the Owner). There is a minimum charge equal to the total of the Fixed Charge plus VAT. The example below illustrates the composition of the leasing cost to an employee. Because private and business mileage will vary from person to person, anyone offered a lease car is advised to contact the Lease Car Administrator for an individual quote before making the decision to accept. All mileage travelled on official business will be reimbursed on a monthly basis at a standard rate. If there is no free parking available at any place visited on official business parking fees incurred will be reclaimed on production of the ticket. There is a charge of 25 for a replacement vehicle. 24

26 SCHEDULE C(II) BUSINESS MILEAGE REIMBURSEMENT CALCULATION Unleaded Petrol Post 2000 budget (pence) Cost per litre 79.8 Cost per gallon (1 gallon = litres) Ford Fiesta 1.31 Manufacturer's mileage figures in accordance with EEC Directive 93/116/EC Cost per mile (pence) Urban cycle Extra urban cycle Combined cycle Average urban/combined 9.90 Diesel Fuel Post 2000 budget (pence) Cost per litre 79.8 Cost per gallon (1 gallon = litres) Ford Fiesta 1.31 Manufacturer's mileage figures in accordance with EEC Directive 93/116/EC Cost per mile (pence) Urban cycle Extra urban cycle Combined cycle Average urban/combined

27 SCHEDULE C(III) WORKED EXAMPLE THE EMPLOYING ORGANISATION LEASE CAR CALCULATION Name of Employee A Worker Base Business Mileage PA (to nearest 1000) Total mileage per annum for contract CHOSEN VEHICLE 3000 Private Mileage P. (to nearest 1000) P11D Value Make VW Model Polo 1.4S 5dr Contract Hire miles PA Cost Extras Total Contract Hire Cost as per 1855 rate tables Leasing HSBC Company EMPLOYEE'S ALLOWANCE Lump Sum 626 Mileage Business miles p 1496 PRIVATE MILEAGE CHARGE OF CHOSEN VEHICLE Hire at mpa 2400 Hire at 6000 mpa 1609 NET 791 Charge per 1000 private miles

28 COST TO EMPLOYEE FOR LEASE VEHICLE Charge for private miles Car Tax (including rental - Replacement Vehicle Cover Insurance Handling Charge Additional Cost for chosen vehicle specification Total cost to employee % Monthly charge to employee

29 SCHEDULE D INSURANCE All lease cars are covered by a fully comprehensive insurance policy. This policy is renewed in October each year and the cost is largely dependent on the level of claims in the previous year. The Trust reserves the right to vary the conditions of the policy in respect of such things as windscreen cover and excess charges in order to negotiate the best possible price. Excess Charges 1. All drivers will be required to pay the first of the cost of any repairs resulting from any accident, theft or attempted theft, unless the incident occurs when the employee is on duty, when the excess charges will be paid by the Trust, see paragraph B Young drivers will be required additionally to pay the first part of any claim as follows: (i) Drivers aged under Drivers over 20 who have held a full driving licence for less than 1 year will be required to pay a further towards the cost of any accident. 4 If the vehicle is fitted with an immobiliser (i.e. a device that automatically cuts off the electrical system thereby making the vehicle impossible to start) then the above excess is reduced by 50% in the case of theft/attempted theft. 5. An additional accidental damage excess will also apply if the driver has been convicted of a serious drink/driving or dangerous driving offence within the last five years. Benefits 1. Free legal advice. 2. The costs of an attempt to recover uninsured losses e.g. the excess and personal injury claims from a third party when they were clearly at fault (NB Witnesses can be vital to the success of such claims). 3. Cover for up to worth of personal effects (subject to the excess above). 4. Cover for use within the EC and most other European Countries at no extra cost. (Subject to prior notification to the Trust). 28

30 Process for adding family members to the insurance policy 1. Additional family members should be notified in writing to the Lease Car Administrator prior to their use of the vehicle, with a copy of any additional driving licences enclosed. 2. This will be confirmed in writing by the Lease Car Administrator once actioned. 29

31 SCHEDULE E COMPANY CAR TAX It is essential` to check your own tax position before entering into an agreement. 30