Document Details Standard Lease Car Policy Trust Ref No Local Ref (optional) Version 6.1 Main points the document covers

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1 Document Details Title Standard Lease Car Policy Trust Ref No Local Ref (optional) Version 6.1 Main points the document covers This policy sets out the arrangements for leasing cars to staff employed within Shropshire Community Health NHS Trust. Who is the document aimed All staff except Directors and Medical and Dental staff at? Author Who has been consulted in the development of this policy? Approved by (Committee/Director) Juliet Morris, HR Manager and Keith Edwards, Systems Accountant in consultation with Wayne Carson, Car Leasing Manager Approval process HR Team, Managers, JNP, HR and Workforce, Finance, Pay Services, Car Leasing Office. HR and Workforce Committee Approval Date 11 October 2016 Initial Equality Impact Yes Screening Full Equality Impact No Assessment Lead Director Director of Corporate Affairs Category Human Resources Sub Category None Review date October 2019 Distribution Who the policy will be All staff distributed to Method Via website Document Links Required by CQC None Other None Amendments History No Date Amendment 1 October 2013 Change to HMRC advisory fuel rate 2 November/ December 2013 Page 5 (section 3) addition of roles and responsibilities as per Procedural documents Page 6 (4.3) Reserve rate of reimbursement and reasonableness test added. Page 7 (5.5) discussion with Trade Unions added Page 9 (8.2.2). (d) added that employees of SCHT are permitted to drive lease vehicles (Lease Car insurance now covers any driver)

2 Page 11 (section 9) amended procedure to include proactive notification of mileage undertaken and offer of lease car to staff who are projecting an annual mileage of over Page 13 (appendix A) now application form (was contract) Page 18 (appendix A) final sign off now by Executive Director of the relevant service (was by Director of Nursing, AHPs, Quality, HR, Workforce/OD) Page 19 (appendix B) now contract (was application form) Page 25 (appendix C) sample letter of notification of annual mileage added Page 26 (appendix D) Notice of lease Car offer declined added 3 January 2014 Addition following JNP Meeting on 21 January Page 6, point 4.2 allowing for a lease car to be considered where a member of staff travels over 3,000 miles per year and it is considered economically viable for the employee and the Trust. 4 December 2015 Administrative changes following lease car audit (September 2015). Created Version 6 as given below: 5 June 2016 Page 5 Additions to Directors responsibilities Page 6 Additions to Manager and Employee responsibility relating to monitoring of eligibility for a lease car Page 6 Provision for transfer-in of lease contracts added (4.4) Page 7 Section five changed from Allowances to Trust Contribution to Lease Car. Page 7 Section five restriction of choice of vehicle to Vauxhall range removed Page 9 Provision for transfer-out of lease contracts added and paragraph on mileage reimbursement if employee voluntarily ends lease contract early. Written agreement and costs analysis required from budget manager for extension of lease Page 12 Additional sections added to procedure for new leases and renewals Page 13 section 9 manager responsibility to monitor business miles of team and offer lease car where this exceeds 3500 Page 18 I certify that I have costed this proposal in accordance with the lease car costing policy replaced with I certify that I have provided accurate costs which provide best value for money for the Trust and I attach a copy of the quote provided to the member of staff to this form. Requirement for Executive Director sign-off removed and requirement for budget manager sign-off added Page 20 - Contract agreement re-numbered Datix Ref: Lease Car Policy V6.1 : Page 2 of 32

3 Standard Lease Car Policy Datix Ref: Lease Car Policy V6.1 : Page 3 of 32

4 Contents 1 Introduction Purpose Roles and Responsibilities Requirements Trust Contribution to Lease Car Tax Implications Length of Lease Contract and Early Termination Terms of Lease Contract Procedure Appeal Monitoring Review Consultation Appendix 1 - Standard Lease Car Policy - Application Form Appendix 2 - Standard Lease Car Policy - Contract Agreement Appendix 3 - Car Leasing Office Checklist for Lease Car Files Appendix 4- Budget Manager Approval for Extension of Vehicle Lease Datix Ref: Lease Car Policy V6.1 : Page 4 of 32

5 Shropshire Community Health NHS Trust Standard Lease Car Policy 1 Introduction 1.1 This policy sets out the arrangements for leasing cars to staff employed within Shropshire Community Health NHS Trust. It does not apply to Executive Directors (whose terms and conditions are established by the Remuneration Committee) or to medical staff (see Whitley Council Handbook for Hospital Doctors). 2 Purpose 2.1 The Trust recognises that in order to provide community health services certain jobs require that employees are mobile. The Trust requires employees who meet the criteria set out in section 4 to accept a lease car where this is the most cost-effective option. 2.2 The Trust wishes to encourage employees to consider the impact of car use on the environment. Before considering applying for a lease car, employees are asked to look at the possibility of using public transport, car sharing or using a pool car where available, for travel on Trust business. In some instances, the use of a bicycle or motorcycle may be possible and the Trust will promote such activity. However, the use of these other modes of transport must be balanced with health and safety and service delivery considerations. 3 Roles and Responsibilities 3.1 The Trust Board will be responsible for: Giving their commitment to fair and equitable treatment of all members of staff who take on a lease contract irrespective of age, gender, marital status, disability, race, colour, national/ethic origins, religion or sexual orientation. 3.2 Directors will be responsible for Ensuring the implementation of the Lease Car policy within the Trust and providing the Board with robust assurance that lease car contracts are being managed in accordance with the conditions as set down in the NHS Terms and Conditions of Service Handbook. Ensuring regular audit takes place to monitor that the systems in place adequately control and monitor allocation of lease cars, mileage undertaken and claimed and to prevent error/misuse. Investigating and robustly acting should the audit demonstrate irregularities relating to lease cars within a department or service. Considering the information provided through the Oracle order for the lease car and giving final approval Datix Ref: Lease Car Policy V6.1 : Page 5 of 32

6 3.3 Line Managers and Budget Holders will be responsible for Applying the policy consistently for all staff Line Managers - Ensuring that the mileage of all members of their team is monitored to ensure that those reaching 3,500 business miles in a year, who do not already have a lease car, are asked to take up a lease contract. Considering applications for a lease car, taking into account this policy, eligibility and best value for money Line Managers - Ensuring that the use of lease cars is monitored to ensure that changes in eligibility are acted upon promptly. Notifying the Car Leasing Manager immediately if the employee becomes ineligible for a lease car during the contract period Six months before the end of the 3 year lease period, review and act upon the letter and mileage reports from the Car Leasing Manager to ensure that lease contracts are renewed appropriately Budget Holders Checking and approving applications in addition to the line manager if the line manager is not the budget holder. 3.4 Staff will be responsible for: Notifying their Line Manager immediately if they become ineligible for a lease car during the contract period For non-lease car users, monitoring their mileage in partnership with their manager and giving due consideration to taking up a lease car contract should their business mileage exceed 3,500 miles in a 12 month period (and is likely to continue at that level) Submitting a claim for their mileage allowance on a monthly basis Six months before the end of the 3 year lease period, work with their manager to review and act upon the letter and mileage reports from the Car Leasing Manager to ensure that lease contracts are renewed or cancelled appropriately Seeking advice from HMRC on personal tax liabilities in relation to a lease car contract. 4 Requirements 4.1 In order to be eligible for a lease car, an employee must: Be required by the Trust to travel on NHS business (which does not include home to base travel) and, in so doing, travel an average of more than 3,500 miles a year or be projecting achieving such (see section 9) Datix Ref: Lease Car Policy V6.1 : Page 6 of 32

7 Have a full current and valid UK driving licence. Select a car that is fit for the purpose of the job (lease car applicants are asked when selecting a car to ensure that consideration is given to the environmental impact of the car they select). 4.2 Whilst the norm is for a lease car to be considered when an employee travels an average of more than 3,500 business miles a year. Where it is deemed to be economically viable for the Trust and the employee, a lease car may be considered if the employee travels over 3,000 miles per year or is projecting achieving such. 4.3 Based on an individual's previous driving and accident record, the Trust reserves the right to refuse an application for a lease car. 4.4 New employees wishing to transfer a lease contract from their previous NHS employer should speak to their new line manager in the first instance to check that transferring the lease is appropriate for their new role. If it is established that a transfer is appropriate the new manager should contact the Car Leasing Manager to facilitate the transfer and complete the relevant paperwork. The Car Leasing Manager will guide the manager through the process. 4.5 A reserve rate of mileage reimbursement will apply to employees using their own vehicles for business purposes if an employee unreasonably declines the employers offer of a lease vehicle. In determining reasonableness all relevant circumstances of the employee and the business needs of the Trust will be considered. This will include individual circumstances of the employee. 5 Trust Contribution to Lease Car 5.1 The lease contract cost is based on provision of a car, its maintenance, service, Vehicle Excise Duty, breakdown cover and administration of the scheme insurance. The Trust financial contribution covers the proportion of the lease contract cost that relates to business mileage. Please note; employees are required as a condition of the car being available for private use to make a payment for that use (non- business mileage). 5.2 The Trust has agreed a base car value for a lease vehicle which is 11,410. All calculations are based on the costs associated with this base car value. An employee may select any make and model of lease car, however if the car chosen has a larger engine or higher specification than the base car, the employee must bear the associated increased cost themselves ( buy-up costs). 5.3 All employees with a lease car can claim reimbursement for business miles travelled. The fuel allowance is calculated on a rate per business mile and is claimed by using the Trust electronic travel expenses system. The rates are reviewed quarterly on the 1 st of each quarter and are set in accordance with HM Revenue and Customs advisory fuel rates. Current rates can be found at The Trust reserves the right to alter the base vehicle value in 5.2 if there are changes to car related legislation. However, such changes would only take effect following discussion with trade unions and at the end of each employee s current lease car contract. Datix Ref: Lease Car Policy V6.1 : Page 7 of 32

8 6 Tax Implications 6.1 When a company car (such as a lease car from the Trust) is made available for the private use of an employee a benefit in kind value is calculated in relation to the car. Income tax is then liable based on this benefit in kind value. The benefit in kind value for a full year is obtained by multiplying the price of the car for tax purposes (in most cases, its list price plus accessories) by the appropriate percentage, where the appropriate percentage is based on the car s approved C02 emissions figure. There are some supplements and reductions to take account of different fuels. 6.2 The C02 emissions figure can be found at the website and further information on the benefit in kind value and income tax implications (including a calculator model) can be found at the Inland Revenue website The Trust is unable to give advice on personal taxation such advice should be sought from the local tax office. Confirmation of tax liability from HM Inspector of Taxes is recommended before acceptance of a quotation for a lease car. 7 Length of Lease Contract and Early Termination 7.1 The employee and the Trust will sign a three year lease contract. Terminating a lease contract during the three year lease period incurs penalty payments for the employee. These are calculated as follows: In year one of the lease 5 months of the total annual lease cost In year two of the lease 3 months of the total annual lease cost In year three of the lease 1 month of the total annual lease cost 7.2 If the employee becomes ineligible to have a lease car during the contract period they and their line manager must notify the Car Leasing Manager immediately. Each case will be considered individually, and in some circumstances (for example if the ineligibility is only temporary) it may be considered appropriate to allow the lease contract to continue until the end of the lease period on the same terms and conditions. In most circumstances, however, it will be appropriate for the lease contract to end. One such circumstance would be the employee no longer meeting the eligibility criteria. If this is the case the lease will end at the end of the lease contract or a notice period of six months will be given whichever is less. 7.3 The lease contract may be ended at the Trust s cost in the following circumstances: Long term sickness absence Death Involuntary redundancy Ill health retirement Employee no longer eligible for lease car due to change of position through Trust instigated redeployment or relocation Employee no longer eligible for lease car due to changes in the travel requirements of the position, where those changes are outside the employee s control In cases of loss of the vehicle (and therefore termination of the lease contract) through insurance write-off, the insurer will normally settle with lease company direct and will cover penalties when the loss has occurred whilst undertaking Datix Ref: Lease Car Policy V6.1 : Page 8 of 32

9 business miles. 7.4 The lease contract may be ended at the employee s cost via a salary deduction in the following circumstances: resignation dismissal voluntary redundancy planned retirement loss of driving licence employee no longer eligible for lease car due to voluntary appointment to a new post (see 7.5 below) employee no longer eligible for lease car due to voluntary attendance of approved training (e.g. Specialist Practice course) In cases of loss of the vehicle (and therefore termination of the lease contract) through insurance write-off, the insurer will normally settle with the lease company direct and will cover penalties when the loss has occurred whilst undertaking business miles. The employee will be charged insurance excess only, via a salary deduction, when the vehicle has been written-off whilst undertaking private miles. 7.5 If an employee leaving the Trust wishes to transfer the lease of their vehicle to their new NHS employer they should contact the lease vehicle office of the new Trust to make arrangements for transfer. This may not always be possible and agreement to this will be the decision of the receiving Trust and the vehicle leasing company. If agreement to transfer the lease is agreed, the employee should make contact with the Car Leasing Manager to make arrangements for the transfer. A record of the transfer must be kept on the lease file by Shropshire Payroll Services. 7.6 Before ending a contract at either the Trust s or the employee s expense the Trust will seek to minimise any costs by reassigning the vehicle wherever possible. At the end of the contract if the employee remains ineligible they will not be able to enter into a further lease car contract. 7.7 Once the lease car has been held for a period of three years the employee will be reassessed and asked to sign the latest contract agreement, including those people who intend to keep the same car. This will ensure that the personal circumstances have been reassessed and that on-going eligibility has been confirmed. 7.8 In exceptional circumstances, and where it is the most cost effective option for the Trust, it may be necessary to extend a lease beyond the 3 year term for a short period of time (to a maximum of six months). In these circumstances where a cost to the Trust is incurred the lease may only be extended with the written agreement of the budget manager using the form contained in this policy at Appendix 4. A record of the rationale for extension and a costs analysis must be kept by the line manager and the Lease Car Manager on the lease file. 7.9 Where a lease car contract is terminated early by the employee in favour of using their own car for business use, mileage from the date which the car is returned will be reimbursed as follows: A reference period of 12 months will be used. Business miles undertaken in the 12 months prior to returning the lease car will be calculated and the balance of business miles up to 3,500 will be paid at the higher standard rate. If business miles during that period exceed 3,500, the lower standard rate of Datix Ref: Lease Car Policy V6.1 : Page 9 of 32

10 reimbursement will be paid for all miles undertaken over 3,500. The mileage year runs from 30 th June to 1 st July and these dates will be taken into account when calculating amounts for mileage reimbursement (see example below): Example: Where an employee terminates a lease car early and starts using their private vehicle, the clock starts ticking at that point for business miles e.g. if an employee starts using their private vehicle from 1st November the cumulative mileage will start at that date up until the 30th June, and then start again from the 1st July. 8 Terms of Lease Contract 8.1 A copy of the full current lease car contract is attached at Appendix B. 8.2 A summary of the key points are shown below. (For a full understanding of the terms and conditions of the lease car contract potential applicants should refer to Appendix B) Contracted mileage Employees contract to travel an estimated amount of combined business and private mileage and a fixed total mileage over the lease period. The minimum total mileage is 6,000 miles and the maximum total mileage is 35,000 miles per annum. The employee must monitor the total mileage travelled and inform the Trust if it is expected to exceed the contracted amount. It may be possible to negotiate a variation to the contract but where this increases the total lease cost the Trust will recalculate the allowance and the employee s contribution based on whether the increase is due to increased business mileage or increased private mileage. If the employee returns the car with a mileage count exceeding the contracted total mileage the employee will be charged for all excess mileage costs attributable to private mileage. The excess private mileage will initially be calculated as the difference between the total excess mileage and the excess business mileage (calculated as total business mileage recorded on travel claims for the period of the lease, less contracted business mileage). If the excess private mileage was due wholly or in part to action taken by the Trust (for example redeployment or relocation) this will then be taken into account when calculating the excess mileage costs that the employee should bear. The Employee is required to make a contribution to the cost of the lease contract which will cover expenses as outlined in points a g below). The employee will commit to pay any monthly contribution towards the lease car as a salary deduction. There will be an annual review by the Car Leasing Manager of the business mileage claimed and if an employee s business mileage is expected to, over the course of the lease, place them in a different allowance band then this will be discussed with the employee and their line manager. If appropriate the allowance and the employee contribution will then be recalculated and implemented for the remainder of the lease. a) Rental of vehicle for private mileage (Staff are required, as a condition of the car being available for private use, to make a payment for that use) b) Vehicle Excise Duty c) Maintenance of vehicle d) Insurance for private use (employee and immediate family) Datix Ref: Lease Car Policy V6.1 : Page 10 of 32

11 e) Membership of a motoring organisation (AA, RAC, etc home start and relay) f) Any buy-up costs i.e. where the lease cost of the chosen car exceeds the lease cost of the base car g) VAT at the applicable rate on all the above Insurance The insurance cover arranged by Shropshire Community Health NHS Trust is fully comprehensive. The policy document may be inspected on application to the Car Leasing Office. A brief summary is given below:- The prices quoted include fully comprehensive insurance with the following limitations: (a) (b) (c) The User driving the lease car for Shropshire Community Health NHS Trust business and for social, domestic and pleasure purposes; Named full or provisional licence holders of the User s immediate family, eg spouse, children using the car ONLY for social, domestic and pleasure purposes; The Insurance policy does not provide cover for non-nhs Business Use under any circumstances and expressly forbids such use Under no circumstances must any person other than the user, the named members of the user s immediate family, or employees of Shropshire Community Health NHS Trust, who are permitted to drive by Shropshire Community Health NHS Trust, drive the car on the public highway. Cover will normally be subject to an excess as follows (please refer to individual policy):- All drivers Plus Drivers under 25 Provisional licence over accidental damage 250 accidental damage 175 accidental damage Adequate notice of the intention to travel abroad must be given to the Leasing Company. Any User taking the leased vehicle outside the United Kingdom must also ensure AA 5-Star cover or equivalent is provided to ensure that the vehicle would be returned to the United Kingdom in the event of serious breakdown or accident. Written authorisation and a copy of the vehicle registration document should be obtained from the Leasing Company before the User leaves the United Kingdom. All additional costs must be borne by the User. Any advice on the insurance cover required for overseas travel can be obtained from the insurance company. As Shropshire Community Health NHS Trust is the insured, cover for driving vehicles not owned or leased by the Trust is not included. The driver of any such vehicle will therefore be subject to the conditions and cover of the policyholder s motor vehicle policy of insurance of these other vehicles. Should the User be convicted of any offence in connection with any motor vehicle during the period of participation in the scheme and the User is not disqualified from holding a licence, Shropshire Community Health NHS Trust reserves the right to Datix Ref: Lease Car Policy V6.1 : Page 11 of 32

12 impose special terms. The User shall notify the Car Leasing Office immediately of any such conviction. Claims on the insurance policy as a result of incidents which occur whilst the employee is on official business, will be the responsibility of Shropshire Community Health NHS Trust, including any excess payments, regardless of fault. However, claims which result from incidents when the employee is not on official business will result in the User paying the excess as appropriate, whoever was considered to be the cause of the incident. If the User feels that the third party involved was responsible for the incident, the User can attempt to claim the excess via the insurance company s legal services department. In the event of the insurance company imposing a surcharge on a specific driver as a result of a number of claims under this policy, the excess costs will be recharged to the driver concerned. In cases where the production of evidence of insurance is necessary, a letter of authorisation and a copy of the insurance certificate can be obtained from the Car Leasing Office. The no-claims bonus on an employee s car insurance for any private vehicles should be protected. If there are no claims on Shropshire Community Health NHS Trust insurance policy which are attributable to that employee, a letter will be issued by the Car leasing Office on request to the effect that no claims have been made by the employee concerned. Fully comprehensive insurance is included, but there are certain exclusions contained within the policy concerning personal accident benefits, personal effects (mobile phones and computers are not covered) and windscreen cover. A copy is available for inspection at the Car Leasing Office on request Maintenance of the car The lease contract includes full maintenance and servicing in accordance with the manufacturer's schedule, repairs, replacement of tyres (through normal wear and tear), batteries, exhausts, etc. Employees are responsible for familiarising themselves with the servicing requirements and the manufacturers warranty and then arranging the necessary appointments with the designated service centre. The designated service centre will gain the approval of the lease company before carrying out any maintenance/repairs. Any repairs/replacements necessary as a result of deliberate abuse or neglect by the employee will need to be paid for by the employee Car related offences Lease car users are required to report any caution, fine or endorsement incurred by themselves or other named drivers to their Car Leasing Manager. Lease car users must pay all parking, speeding and other car related fines themselves. If, for example through not paying within the allotted deadline, there is an administration charge passed from the lease car company to the Trust, this charge will be passed on to the employee via a salary deduction Return of the vehicle at the end of the lease The car must be handed over in good condition, in person to the Car Leasing Manager at the end of the lease. Datix Ref: Lease Car Policy V6.1 : Page 12 of 32

13 The User will be required to reimburse the Trust the cost of any repairs that the Leasing Contractor considers are needed to bring the vehicle into good condition, taking fair wear and tear into account, unless in the opinion of the Car Leasing Office there are good reasons for waiving this right. Examples of types of damage or wear and tear which will be chargeable are given below: (a) (b) (c) (d) (e) Body damage other than fair wear and tear Accident damage to light or glass coverings Tyres to have at least 2mm of tread Interior damage other than fair wear and tear, i.e. no damage to seats, headlights, dashboard, boot interior, stains from oil, glue, chemicals, etc; Vehicle must be in a clean condition inside and out Further information regarding the return of your vehicle can be accessed through the British Vehicle Rental and Leasing Association BVRLA website 9 Procedure 9.1 It is the responsibility of the manager to monitor business mileage undertaken by members of their team to ensure that, if they exceed 3,500 business miles per year they are offered a lease car contract. Mileage reports can be obtained through Shropshire Payroll Services. 9.2 For existing leases the Car Leasing Manager will write to the employee and their manager 6 months before the end of the 3 year lease contract. The letter will notify the employee and the manager that the lease contract is coming to an end and will include a report on business mileage undertaken in the vehicle during the term of the lease. 9.3 It is the responsibility of the manager to review the mileage with the employee to assess whether they are likely to exceed 3,500 business miles per annum... Where this level of usage is to continue the employee will be offered a lease vehicle. 9.4 A lower standard rate of reimbursement will apply to employees using their own vehicles for business purposes if an employee unreasonably declines the employers offer of a lease vehicle. In determining reasonableness all relevant circumstances of the employee and the business needs of the Trust will be considered. This will include individual circumstances of the employee. 9.5 For new leases, any employee wishing to consider applying for a lease car (where their business mileage exceeds 3,500 miles in a 12 month period), should discuss their eligibility with their line manager in line with this policy. If it is agreed that the employee is eligible for a lease car, the employee should contact the Trust s Car Leasing Manager stating that they wish to consider a lease car under the Trust s standard policy. The Car Leasing Manager will advise on costs of lease cars and will provide a maximum of three quotes, but will not give tax advice. Having selected a lease car, the employee is advised to seek guidance on the tax implications of the Datix Ref: Lease Car Policy V6.1 : Page 13 of 32

14 chosen car from the Inland Revenue. Applicants should ensure that they have read both this policy and the lease car contract that they will be required to sign (Appendix B to this policy) before applying for a lease car. If the employee wishes to proceed, an application should be made on a standard form (Appendix A to this policy). 9.6 For both renewal and new leases, the completed application for a lease car should be assessed against the criteria by the Line Manager, agreed and signed off by the Line Manager (and authorised budget signatory if the line manager is not an authorised signatory) and the employee Final sign-off is via Oracle by the service Executive Director. No lease car contract should be entered into until final sign-off of the application. 9.7 Upon collection of the vehicle, the employee must sign the Standard Lease Car Contract Agreement (appendix B) 10 Appeal 10.1 If an employee is dissatisfied with the outcome of their application for a lease car they can appeal. Any appeal should be undertaken through the Trust s Grievance and Concerns Procedure. 11 Monitoring 11.1 The Car Leasing Manager will provide annual statistical reports based on the employee s business mileage to the Line Manager and employee in order to assess the continued eligibility for a lease car. In the final year of the lease contract, the Car Leasing Manager will provide a mileage statement summarising the mileage undertaken over the past 30 months in order to allow the manager and employee to assess against criteria the continuing requirement for a lease car All lease car applications will be assessed against the criteria by the employee s line manager, signed off by the Manager (or authorised signatory if not the line manager) and the Service Executive Director through Oracle Associated documentation will be kept on file by the Car Leasing Manager in accordance with the checklist for lease car files (appendix C). Where indicated in this policy copies of documentation must also be kept on the employee s personal file. 12 Review 12.1 This policy will be reviewed in the light of any changes to company car taxation, following actions required by audit, or after three years of implementation whichever is the sooner. 13 Consultation During the writing of this policy the following people have been consulted: Car Leasing Manager, Head of Payroll Services, HR, OD and Occupational Health teams, Senior Managers and their direct reports, Finance representatives, JNP, HR and Workforce Group. Datix Ref: Lease Car Policy V6.1 : Page 14 of 32

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16 Appendix 1 Appendix 1 - Standard Lease Car Policy - Application Form Contract Vehicle Hire Scheme Please use BLOCK CAPITALS THROUGHOUT All sections of this form must be completed Part 1 Particulars of Applicant Name Preferred Title MR / MRS / MISS / MS Home Address Postcode Home Phone Number and/or mobile phone number. Position Title ESR Number N I Number Contracted Hrs per wk Base Ward/Department Work Address Address Post Code Work Phone Number Mobile Phone Number Datix Ref: Lease Car Policy V6.1 : Page 16 of 32

17 Estimated Annual Mileage Business Estimated Annual Mileage Private Estimated Annual Mileage - Total Actual Business Miles last 3 Years: Provided by SPS Actual Annual Mileage Business (year 3) Actual Annual Mileage Business (year 2) Actual Annual Mileage Business (year 1) Do you currently have a lease car? If yes, which Lease Company is car with YES / NO Car Make & Model Car - Registration Number Termination Date of Contract Part 2 Eligibility You must meet the eligibility criteria set out in the relevant Lease Car Policy. I confirm that I am eligible for the Standard Lease Car Scheme in line with the criteria set out in the Standard Lease Car Policy, and reproduced below as points 1-3: Please tick as appropriate: 1. I am required by the Trust to travel on NHS business (which does not include home to base travel) and, in so doing, travel an average of more than 3,500 miles a year 2. I have a full current and valid UK driving license 3. I will select a car that is fit for the purpose for my role and ensure that consideration is given to the environmental impact of the car I select Part 3 Particulars of car required Please note - If your chosen vehicle is not readily available, you will be informed and offered comparable alternatives. Three quotes will be provided by SPS Manufacturer Model Datix Ref: Lease Car Policy V6.1 : Page 17 of 32

18 Specification Type No of Doors Engine Size Fuel Manual / Automatic Exterior Colour Internal Trim Colour Give details of manufacturer s factory fitted options required the cost of these options will be added to the lease Give details of all other accessories, including dealer fit options - the user will be required to meet these additional costs direct with the dealer. No accessories must be added to the vehicle without the express permission of the manufacturer / leasing company Datix Ref: Lease Car Policy V6.1 : Page 18 of 32

19 Part 4 Particulars of main and other drivers Main driver Full name of user No. of years full driving licence held Other (1) Other (2) Other (3) Other (4) Other (5) Please note a photocopy of the driving licences (for the new driving licences both the licence and the counterpart, on two separate sheets) must be attached to this application form. This applies for all nominated drivers of the car. Part 5 Employee s Declaration Any quotation given for your Contract Hire Vehicle is as accurate as can be possibly given at the time, but it should be borne in mind that there are factors which could alter this between then and the delivery of the vehicle e.g. price increases, taxation, interest rates etc. Therefore the price quoted although in good faith, cannot be confirmed until notified by the Finance Department upon delivery of the vehicle. I have received a quotation for the costs of taking on a vehicle under this lease and I understand that in accordance with the statement above, the costs will be finalised upon delivery of the vehicle. I understand that by making this application I agree that the costs of this vehicle will be deducted from my salary on a monthly basis over the period of the lease. I understand that if I terminate the lease early I will be responsible for paying the costs of early termination and that this may be deducted through payroll. I understand that I will be responsible also for funding any excess costs charged at the end of the lease related to excess mileage, excess wear and tear etc. I, the employee, accept the above and agree to proceed on this basis. Signed (Employee) Date Datix Ref: Lease Car Policy V6.1 : Page 19 of 32

20 This form should now be passed to your Line Manager Part 6 Approval For Completion by the Line Manager IMPORTANT NOTE *If the line manager is not an the budget holder / authorised signatory, an additional signature from this person will be required **If special circumstances for eligibility for a lease car are being cited the application must be countersigned by an Executive Director I certify that: the applicant meets the lease car eligibility criteria as set out in the lease car policy; and the car requested is suitable for the applicant s duties; and the business mileage is in line with my expectations of the applicant s role; and the costs should be charged to the cost-centre given below. Actual Annual Mileage Business (year 3) Actual Confirmed Signed Actual Annual Mileage Business (year 2) Actual Annual Mileage Business (year 1) Special Circumstances Please complete this box when an application is being made but historical business mileage is not available 1 or does not meet the eligibility requirements 2.. Authorisation will be required by an Executive Director under these circumstances. (next page) Datix Ref: Lease Car Policy V6.1 : Page 20 of 32

21 1 The application is for use of a lease car in a new role and therefore a record of business mileage is not available. Confirm that this individual is projected to undertake a minimum of 3,500 business miles per year for the whole of the term of the three year lease. Please give rationale and calculations below and obtain approval from the Executive Director of your service: 2 The individual does not meet the eligibility requirements relating to mileage due to absence from work (e.g. maternity leave or long term sickness). Please give details below and obtain approval from the Executive Director of your service: : Signed Line Manager Date Name Position Title *Signed Budget Manager Date **Signed Executive Director (Special Circumstances only) Cost Centre Code Date Account Code Cost Centre Description Name of Executive Director for Oracle approval Datix Ref: Lease Car Policy V6.1 : Page 21 of 32

22 6.1 For Completion by Car Leasing Manager I certify that I have provided accurate mileage reports and costs which provide best value for money for the Trust and I attach a copy of the quote provided to the member of staff, to this form. Signed Date Name Job Title 6.2 Following approval by the line manager/budget holder and Executive Director for special circumstances, an Oracle purchase requisition will be raised, by the Car Leasing Manager, for approval by the appropriate Executive Director 6.3 Once approval has been given the vehicle will be placed on order by the Car Leasing Manager, Wayne Carson, Shrewsbury & Telford NHS Trust, Block 2 Douglas Court, Anchorage Avenue, Shrewsbury Business Park, SY2 6LG. Tel: Fax: Datix Ref: Lease Car Policy V6.1 : Page 22 of 32

23 Datix Ref: Lease Car Policy V6.1 : Page 23 of 32

24 Appendix 2 Appendix 2 - Standard Lease Car Policy - Contract Agreement Contract Vehicle Hire Scheme 1. This contract agreement is between the Shropshire Community Health NHS Trust (referred to as the Trust from now on) and the employee named below. This contract agreement outlines the terms and conditions governing the leasing of the car, whose registration and details are given below, from the Trust to the Employee. This contract is valid for three years from the commencement date given below. This contract must be signed by the Employee before a lease car is delivered to them. CONTRACT COMMENCEMENT DATE EMPLOYEE NAME ADDITIONAL DRIVERS CAR REGISTRATION CAR MAKE CAR MODEL SPECIFICATION TYPE FUEL ENGINE SIZE GEARING LEASE COMPANY EMPLOYEE ANNUAL CONTRIBUTION EMPLOYEE MONTHLY CONTRIBUTION CONTRACTED BUSINESS MILEAGE Datix Ref: Lease Car Policy V6.1 : Page 24 of 32

25 CONTRACTED NON-BUSINESS MILEAGE CONTRACTED TOTAL MILEAGE 2. The Employee hereby commits to pay the Trust the Employee Annual Contribution quoted above every year for the three years of this contract. The Employee hereby authorises the Trust to deduct the Employee Monthly Contribution from any remuneration and/or superannuation benefits due to them from the Trust. In the event of monthly remuneration from the Trust falling below the Employee Monthly Contribution (for example during unpaid leave, sick leave or maternity leave) the Employee hereby commits to paying the Employee Monthly Contribution either on receipt of a monthly invoice from the Trust or through a one-off additional contribution once remuneration from the Trust recommences. If no further remuneration is then paid by the Trust the Employee hereby commits to paying the outstanding Employee Monthly Contributions on receipt of an invoice from the Trust. 3. The Employee hereby commits to remain within the eligibility criteria of the scheme as outlined in the Standard Lease Car Policy. If the Employee becomes ineligible during the contract period they must notify the Trust immediately. Action will then be taken in accordance with the Standard Lease Car Policy. 4. The Employee hereby commits to return the car at the end of the contract period with no more than the Contracted Total Mileage on the odometer The Employee must monitor Total Mileage and has a duty to inform the Trust if it is expected to exceed, even slightly, the contracted amount. In this case the Trust will try and negotiate a variation to the contract to take into account the increased mileage. This may mean an increase to the total lease cost. The Trust will recalculate its allowance and the Employee Monthly Contribution based on whether the increase is due to increased business mileage or increased private mileage. The Employee must submit monthly travel claims in line with the Trust s usual claim procedure giving information on business mileage covered. 5. If the Employee returns the car with a mileage count exceeding the contracted total mileage the Employee hereby commits to paying all excess mileage costs attributable to private mileage incurred by the Trust upon termination of the Hire Agreement or upon the agreed transfer of the vehicle to the Employee s new Employing Trust. The excess private mileage will be calculated as the difference between the total excess mileage and the excess business mileage (calculated as total business mileage recorded on travel claims for the period of the lease less Contracted Business Mileage). If the excess private mileage was due wholly or in part to action taken by the Trust (for example redeployment or relocation) this will then be taken into account when calculating the excess mileage costs that the employee should bear. 6. The Employee must not sell, assign, rehire, charge, or part with possession of the vehicle except as authorised under the following terms and conditions. 7. The act or omission of any person authorised by the Employee to use the vehicle shall for the purposes of this Agreement be deemed to be the act or omission of the Employee. 8. The Employee may request either at the time when the vehicle is ordered, or at any subsequent time, subject to the written approval of the Car Leasing Manager, the addition of any accessories approved by the Leasing Company of the vehicle or extras to the standard specification. These will then be added to the vehicle at the Employee s expense by the dealer approved by the Leasing Company. The Employee will not be Datix Ref: Lease Car Policy V6.1 : Page 25 of 32

26 entitled to remove from the vehicle, either before or after the expiry of the period of hire, any such accessories so fitted except with the written approval of the Leasing Company. 9. Except as permitted in clause (8) above, no accessories may be fitted to the vehicle. 10. Any caravan, boat or trailer must be towed only in accordance with all legal requirements relating thereto and the manufacturer s specification. 11. Any person using the vehicle must hold a current UK driving licence. In the event of the Employee or other person authorised to use the vehicle ceasing to hold a current driving licence the Employee must immediately notify the Car Leasing Manager of this fact in writing. 12. The vehicle may be used only by the Employee in the course of his employment with the Trust, or by the Employee and any person authorised to use the vehicle for social, domestic, or pleasure purposes. 13. The Employee must not use, or permit to be used, the vehicle in breach of clause (10), (11) and (12) above, nor for hire reward, competition, trials or pace making. The vehicle should not be used for driving tuition. 14. The Employee must not take the vehicle outside the United Kingdom unless he has given prior notice in writing to the Lease Car Company and has received written notification both from the Lease Car Company and the employee s own insurers. 15. The Employee must observe in relation to the vehicle the standard of care of a careful owner, and in particular must:- (a) (b) (c) (d) (e) (f) Notify the Supplying Dealer of any faults upon delivery, and report to the Car Leasing Manager in writing any serious faults which appear during the period covered by the Manufacturer s Warranty, which has not been satisfactorily dealt with by an appropriate Dealer. Ensure that routine servicing and maintenance are carried out at the time and/or mileage service intervals recommended by the Manufacturer by the Supplying Dealer or such other garage as the Car Leasing Manager may approve in writing ( the Servicing Contractor ) and report to the Car Leasing Manager in writing any defects not rectified by the Servicing Contractor. Report promptly to the Servicing Contractor any defects or symptoms of defects which are not rectified in the course of routine servicing. Permit persons so authorised by the Car Leasing Manager to inspect the vehicle upon being given reasonable notice of their intention to do so. Co-operate with the Car Leasing Manager in obtaining the benefits of any warranty or guarantee given to the Trust or the Leasing Company upon supply of the vehicle. Except in cases of emergency the Employee must not incur expenditure which would otherwise have been recoverable under warranty or guarantee. Keep the vehicle clean and at regular intervals check and maintain all oil and other fluid levels and tyre pressures. Undue wearing of or damage to tyres must be reported to the Car Leasing Company immediately, and the vehicle must not be used unless the tyres conform to all relevant legal requirements. Datix Ref: Lease Car Policy V6.1 : Page 26 of 32

27 The designated service centre will gain the approval of the leasing company before carrying out the work. (g) (h) (i) (j) (k) (l) (m) (n) (o) (p) (q) (r) Take all precautions against frost damage and ensure that the anti-freeze content within the engine coolant system is of adequate strength. At all times to park the vehicle in such a manner as to minimise the risk of damage or theft and to endeavour to keep the vehicle secured. The vehicle must not be left parked on a public highway overnight without good reason, and the Employee must inform the Car Leasing Manager of any permanent change of address at which the vehicle may be garaged or kept. Bear the cost of cleaning. Not alter, modify or remove any parts from the vehicle, nor change any of the identification marks or numbers, without prior consent in writing of the Leasing Company. Conform to the recommendations and instructions contained in the Manufacturer s handbook as to running in speeds and use of the vehicle. Not overload, overwork or otherwise subject the vehicle to stresses for which it is not designed, nor use the same to carry goods for which it is not suited. Observe all legal requirements regarding the use and possession of the vehicle and exercise all reasonable care in keeping the same in good condition both mechanically and otherwise, and avoid loss of or damage to the same whether upon the public highway or elsewhere. Pay any fines for the unlawful parking of the vehicle during the period of hire and indemnify all other bodies or persons who may be obliged to meet with fines, together with any administration charges levied. Pay for all petrol, diesel, oil, anti-freeze and other fluids required to maintain the Manufacturer s recommended levels between the services of the vehicle. Each and every month submit a correctly completed and authorised travel claim in line with the Trust s usual travel claim procedures detailing all business miles travelled by the vehicle during the particular month. Notify the Car Leasing Company as soon as reasonably practical of any defect or failure of the odometer or mileometer attached to the vehicle in which event the Trust may in its absolute discretion estimate unrecorded mileage upon the average distance covered during the last complete year before such failure or defect was discovered and such other relevant information as it chooses to consider. Ensure that the vehicle is available at all times whenever required for the performance of the Employee s official duties. 16. The Leasing Car Company will be responsible for the cost of servicing the vehicle in accordance with the Manufacturer s recommendations, mechanical or electrical repairs, and replacement of tyres, batteries, exhaust and other parts, except as follows:- Datix Ref: Lease Car Policy V6.1 : Page 27 of 32