POLICY & PROCEDURE FOR THE OPERATION OF THE TRUST CAR SCHEME

Transcription

1 Directorate of Facilities & Information POLICY & PROCEDURE FOR THE OPERATION OF THE TRUST CAR SCHEME Reference: FMP013 Version: 4.0 This version issued: 20/02/12 Result of last review: Major changes Date approved by owner (if applicable): N/A Date approved: 14/02/12 Approving body: Trust Executive Team Date for review: February, 2013 Owner: Director of Facilities & Information Document type: Policy Number of pages: 19 (including front sheet) Author / Contact: Jug Johal Head of Transport Car Parking & Security (LSMS) Northern Lincolnshire and Goole Hospitals NHS Foundation Trust actively seeks to promote equality of opportunity. The Trust seeks to ensure that no employee, service user, or member of the public is unlawfully discriminated against for any reason, including the protected characteristics as defined in the Equality Act These principles will be expected to be upheld by all who act on behalf of the Trust, with respect to all aspects of Equality.

2 Contents Section... Page 1.0 Purpose Area Approval and Duties Eligibility Fraud and Probity The Scheme Conditions - Salary Deduction Method Conditions - Salary Sacrifice Method Fuel for Business Use Mileage Variations Vehicle Selection Enhancements Lease Car Scheme Administration Inland Revenue Returns General Contract Terms Insurance Excess Parking Fines and Penalties Use of the Lease Car Abroad Towing Fitting of Accessories, Including Tow Bars Courtesy and Relief Vehicles Long Term Sickness, Maternity Leave and Other Authorised Absences Career Breaks Transfers to another Public Sector Organisation Transfer to Another Position within the Trust Printed copies valid only if separately controlled Page 2 of 19

3 26.0 Termination of the Contract Hire Agreement Managing Occupational Road Risk Monitoring Compliance and Effectiveness Associated Documents References Definitions Consultation Dissemination Document History Trust Car Scheme Key Features Appendix A - Allowances and Enhancements Printed copies valid only if separately controlled Page 3 of 19

4 1.0 Purpose The following policy sets out the eligibility criteria and the method of calculation for the driver s private use rental contribution for a lease car. The purpose of the scheme is to provide transport to employees who are required to be mobile in the course of their work. Employees can continue to use their private vehicles under the GreyFleet scheme. 2.0 Area The scheme applies to all employees who are required to be mobile in the course of their work and where it is in the interest of the Trust to offer a lease car. 3.0 Approval and Duties 3.1 Directors/Deputy Directors Only Directors or their nominated Deputies are eligible to sign off the allocation of a lease car once all the documentation has been signed by the employee. 3.2 Transport Services Manager The Transport Service Manager will retain the power to prevent lease cars being allocated where staff do not meet eligibility criteria, and is required to sign off all vehicle orders on behalf of the Trust. If a line manager wish to appeal against the decision, this should be done in writing to the Chief Executive. The Transport Services Manager will forward all approved orders to the Fleet Administrator for processing. 4.0 Eligibility 4.1 The Trust Car Scheme is be available to new and existing employees of the Trust who meet the eligibility criteria, subject to the approval from the Director/Deputy Director and the Transport Services Manager. 4.2 Employees must be currently on a permanent contract and be able to fulfil the term of the lease contract to be eligible for a lease car. 4.3 The salary deduction scheme applies to employees who are required to be mobile in the course of their work. The need to be mobile will take into account the average annual business mileage travelled over the term of the contract, the number of journeys undertaken and the number of days worked. 4.4 A qualifying driver will travel at least 3,000 business miles per annum. The mileage estimate will be assessed against the driver s last 12 months mileage returns to ensure that the journeys cannot be covered by alternative transport modes (e.g. Shuttle Bus, Pool Cars). 4.5 Qualifying employees will automatically be offered a Trust Car if it is in the financial and operational interest of the Trust to do so. Printed copies valid only if separately controlled Page 4 of 19

5 4.6 If the car is used privately by the employee a charge will be made for the private use. Drivers can chose to make payments by salary deduction or salary sacrifice; a business mileage allowance will be paid to reduce the cost of the car. 4.7 If an employee is not offered a car they can voluntarily join the scheme under a salary sacrifice arrangement subject to the scheme rules. 4.8 Where the offer of a Trust car is reasonable and the offer is declined, the employee can use their privately owned car for work and be reimbursed the Trust Private Car Allowance (Public Transport Rate). The car must be authorised for use at work on the GreyFleet register and meet the minimum standard for a business car. 4.9 In instances where staff are required to be mobile in the course of their work on a limited and/or infrequent basis, and do not have access to a private vehicle, the Trust will endeavour to provide an alternative solution. There is no automatic entitlement to a Trust Car under these circumstances In some cases the Trust will provide a car for business use only, for use by a single driver, or a pool car which will be available to a group of drivers. These cars will not be taken home (special exemptions maybe made through the Transport Services Manager when travelling long distance journeys or travelling during unsociable hours) or used for any private purposes whatsoever. Fuel cards will be issued to all cars exclusively used for business journeys. 5.0 Fraud and Probity 5.1 In accordance with the details set out in this policy, the Trust expects all employees to act with honesty and probity. Any abuse or failure to comply with this policy and associated procedures (for example, submitting falsely inflated mileage claims to reduce private contributions or providing false details in relation to any aspect of the lease car scheme) could be considered as a breach of duty which could result in disciplinary action in accordance with the Trust s general disciplinary policy and may also lead to criminal prosecution. 5.2 Where the allegation is serious the matter should be referred to either the Trust s Local Counter Fraud Specialist or the Director of Finance or by calling the confidential NHS Fraud and Corruption Reporting Line on: The Scheme 6.1 The Trust Car Scheme has been enhanced to make it more attractive to employees. Provided that the car is suitable for the employee s business activities, and does not have an adverse impact on the image of the organisation, employees are allowed a free choice of car within the CO 2 restriction detailed in annex A. In addition there are no minimum mileage criteria or minimum charge for private use. 6.2 Trust Cars will be available for both business purposes and also for private use by the employee. The employee will make a rental payment to cover the private use element of the lease arrangement. Printed copies valid only if separately controlled Page 5 of 19

6 6.3 Qualifying employees can choose the method of payment for the private use rental element of the agreement: Salary Deduction: Under this option, the payment for private use of the car is made monthly by salary deduction from the employee s net pay, after stoppages for Income Tax, NI and Pension contributions Salary Sacrifice: Under this option, the payment for private use of the car is made monthly, but is removed from the gross pay of the employee, before stoppages for Income Tax, NI and Pension contributions. In effect, the employee takes a car in lieu of salary. As the gross salary is therefore reduced, the employee would under normal circumstances face lower deductions GreyFleet: Under this option, the Trust Private Car Allowance will be the Public Transport Rate published in The NHS Terms and Conditions of Service (Agenda for Change) Section 17 Annex L 6.4 If an employee voluntarily changes from salary deduction to salary sacrifice, the salary sacrifice car allowance will apply. If an employee reverts to salary deduction due to a lifestyle change the salary deduction car allowance will apply. 6.5 If the driver adopting salary sacrifice as a payment method gives up the car, or changes the payment method to salary deduction, then the original salary, before the sacrifice, will be reinstated. 7.0 Conditions - Salary Deduction Method 7.1 The employee is required, as a condition of the car being made available for their private use, to pay for that private use of the car. The amount of money will be calculated by deducting a business mileage allowance from the total cost for the provision of the chosen car at the total annual mileage. 7.2 The employee must pay the private usage contribution by way of salary deduction. 7.3 VAT is charged on the full amount deducted from salary for the service provided, regardless of whether certain supplies are zero rated e.g. insurance and excise duty etc. 7.4 All qualifying drivers will receive a standard lump sum allowance and an inclusive mileage allowance based on the average estimated annual business mileage. The allowance is calculated by multiplying the driver s estimated annual business mileage by the mileage rate and added to a standard lump sum. The business allowance is inclusive of all the Trust s costs and specifically includes the full cost of insurance, Class 1a National Insurance, fuel for business use and a contribution for the incremental lease rental cost. 7.5 The Car Allowance is applicable to all drivers travelling in excess of the threshold mileage, as set out in Appendix A. Additional enhancements detailed below may be added to the standard allowance as appropriate. Printed copies valid only if separately controlled Page 6 of 19

7 7.6 Employees are permitted to join the scheme if they are below the threshold mileage, if it is in the interest of the trust to do so and they will receive a single mileage salary sacrifice allowance with no lump sum. 7.7 Drivers will purchase all the fuel for business and private use. 8.0 Conditions - Salary Sacrifice Method 8.1 The employee is required to sign an addendum to their contract of employment with their agreement to sacrifice part of the gross salary in exchange for the car. The amount sacrificed will be based on the annual cost of the chosen car. 8.2 All qualifying drivers will receive a mileage allowance paid monthly on submission of a mileage return. The allowance will cover all costs associated with the business use of the car including fuel for business use. 8.3 Drivers must still use the shuttle bus in preference to your salary sacrifice car when travelling between sites. 8.4 Drivers will only receive public transport rate for journeys between Trust sites. 8.5 Drivers will purchase all the fuel for business and private use. 8.6 Before employees enter into the salary sacrifice agreement, they are advised to read the drivers booklet in appendix 2 and take further advice if required. 9.0 Fuel for Business Use The fuel reimbursement rate will be reviewed in line with the HMRC advisory fuel review. The rates will be reviewed quarterly and any changes will take effect on 1st January, 1st April, 1st July and the 1st October Mileage Variations 10.1 Mileage returns will be completed and submitted at the end of each month. The actual mileage travelled will be monitored and compared to the estimated average mileage. Variations between the actual and the estimated business mileage will be monitored and adjustments will be made to the allowance where appropriate Any permanent variation to the annual business mileage, resulting from a job change or a change in duties, will be re calculated using the revised allowance In all other cases the driver's private use rental will be adjusted using the variable business mileage rate based on the Inland Revenue Advisory Fuel Rates for the chosen car. Variations of less than 5% per annum will generally be made at the variable rate Drivers are ultimately liable to pay the full cost of the car; therefore the charge for private use of the car will be adjusted to reflect the actual business mileage travelled. If the mileage returns are not submitted, the allowance may be discontinued, resulting in an increase in the salary deduction. Printed copies valid only if separately controlled Page 7 of 19

8 11.0 Vehicle Selection 11.1 Because of the diversity of the work undertaken, drivers can make a free choice of vehicle subject to the following restrictions: The choice of vehicle must be suitable for the performance of the driver s duties in a safe and appropriate manner Special emphasis will be placed on Health & Safety issues concerning the carriage of goods and people The vehicle must be appropriate to the length of journey and type of roads regularly travelled 11.2 The Trust is committed to sustainable development and to reduce the environmental impact of the fleet. Therefore, a number of incentives have been introduced to encourage drivers to reduce their business and private travel and to select a car with low carbon dioxide emissions (appendix A). The allowance will be adjusted by a percentage of the insurance cost based on a range of values for carbon dioxide emissions of the chosen car Finally, the image of the organisation and the way it is perceived is also affected by the choice of car and the Trust wishes to portray an image appropriate to its role as a provider of quality and value. Therefore vehicle types judged not to be consistent with this requirement will not be approved Enhancements 12.1 A range of enhancements have been designed to achieve a reduction in risk and environmental impact. In addition, the enhancements will achieve strategic management objectives Environmental incentives are designed to achieve the Trust s stated objective to reduce the carbon footprint of the fleet. Charges and credits are based on the carbon emission value of the chosen car as a percentage of the insurance premium Risk reduction incentives are designed to improve the safety of staff when driving for business purposes. The strategies will also result in a reduction in the insurance premium relative to the reduction in accidents and insurance claims Transitional allowances will apply when a new member of staff transfers to the Trust and brings with them a car from a different scheme. With the agreement of the Director of Workforce and Organisational Development, the difference between the net cost to the driver on the current scheme and the net cost under the previous employer s scheme will be added to the standard allowance for the duration of the current lease. The enhancement will cease when the current car is returned and the new car will be based on the standard scheme The current enhancements are set out in Appendix A. Printed copies valid only if separately controlled Page 8 of 19

9 13.0 Lease Car Scheme Administration The Trust has appointed Knowles Associates to administer leased vehicles on its behalf. All aspects of vehicle administration, from initial quotation to procurement, monitoring and accident management, will be dealt with by Knowles Associates. Knowles Associates will carry out their duties based on the contents of this policy Inland Revenue Returns 14.1 Employees will be liable for a taxable benefit charge calculated in accordance with HM Revenue and Customs guidance. This charge is collected through an alteration to the tax code of the employee and is based on the list price value of the leased vehicle, the level of CO 2 emissions and the contributions for private use. All employees will be provided with an estimate of the likely charge at the quotation stage A form P46 (car) will be produced and sent directly to the local Inland Revenue office when the car is first delivered. If there is a permanent change to the driver s private use rental a revised form P46 (car) will be produced and sent to the local Inland Revenue office. When the car is returned and no longer available for private use a further P46 (car) will be sent to the local Inland Revenue office At the end of each tax year a P11d will be produced listing the car and driver details, the list price, CO 2 value and the drivers private use rental payments for the period the car was available. The P11d will be sent to the local Inland Revenue office and a copy will be sent to each driver The P11d list price will include all extras fitted to the vehicle and will be provided by the supplying dealer and taken from the latest manufacturer s list prices relevant on the day the car is delivered. The CO 2 emission value will also be provided by the supplying dealer and taken from the vehicle registration certificate as reported to the DVLA General Contract Terms 15.1 The Trust leases vehicles for use on official business. Vehicles are provided on a contract hire agreement, normally for a period of 3 years. All vehicles are covered by fully comprehensive insurance, breakdown and recovery services and accident management. Routine servicing, maintenance and repairs are also covered All servicing and repairs resulting from normal wear or component failure will be covered by the leasing company. The driver will be responsible for any accidental damage or damage resulting from the misuse or neglect of the car Drivers will be required to enter into a contract with the Trust under conditions set out in the lease car terms and conditions of use document attached. On agreeing the quotation the driver must complete an application form and sign a hire agreement before the car is ordered. The application form must be countersigned by the employee s Director or their nominated deputy, and passed to the Transport Services Manager for final approval. Printed copies valid only if separately controlled Page 9 of 19

10 15.4 The employee must produce a valid driving licence covering the type of vehicle to be driven. The Trust reserves the right to confirm the driving licence details with the DVLA. Drivers must inform the Trust of all penalty points or other motoring offences that may affect the driver s ability to drive the car. The loss of a driving licence may result in the car being withdrawn and an early termination penalty charged Insurance Excess 16.1 All vehicles provided by the Trust will be covered at all times by a comprehensive business and private insurance policy arranged on a fleet wide basis. The use of temporary vehicles and all hire cars must be notified to the scheme administrator The insurance schedule incorporates policy excesses in the event of any claim. Additional excesses apply in the event that the vehicle is being driven by any younger or less experienced driver The standard policy provides limited cover for any loss or damage to personal effects in or on the insured vehicle if they are lost or damaged. The Trust will not accept any liability for loss or damage to personal effects. Personal effects are normally covered under domestic household contents policies; employees should ensure that they have adequate cover for their needs When a vehicle is parked on a Trust establishment or any other location where the employee normally carries out their duties, it will be part of normal commuting and will be classed as being on private use. When the vehicle is parked at a temporary workplace or when a vehicles returns to base on multiple occasions such as community staff this activity will be classed as normal business use In the event of an insurance claim, the driver will pay the full excess for personal use and 100 excess if the incident occurred on a business Any costs incurred by misuse including the incorrect use of fuel appropriate to the vehicle, will be charged in full to the employee. Such costs are not covered by the insurance policy and drivers should take care to ensure that the correct fuel is used at all times Parking Fines and Penalties 17.1 The driver remains fully responsible for any fines or penalties incurred during use of the vehicle. Any payment which becomes due will be met by the employee in all cases Necessary charges incurred for parking, road tolls and congestion charges whilst on business use will be met by the Trust. These expenses must be claimed through normal Travel & Expenses claims systems, and should be authorised by the line manager in the normal way. Printed copies valid only if separately controlled Page 10 of 19

11 18.0 Use of the Lease Car Abroad Use of the lease vehicle abroad is permitted, subject to prior written application to the Transport Services Manager. However, maintenance costs are not covered when the car is abroad, and it is the employee's responsibility to make special arrangements to cover this period. The minimum acceptable cover is that provided under AA 5 star cover or equivalent. Employees will be advised on the maintenance requirement when written permission is given Towing 19.1 The employee is permitted to tow a caravan, boat or trailer with a leased vehicle provided prior approval in writing is obtained from the lease hire company through the Scheme Administrator. Approval will not be forthcoming if the employee's choice of vehicle is not considered suitable for the proposed towing. Any caravan, boat or trailer shall be towed only in conformity with all legal requirements and the manufacturer s specification Should the lease hire company choose to charge an increased rental to the Trust to cover the lower residual value and higher maintenance costs which result from towing this charge will be paid in full by the employee Fitting of Accessories, Including Tow Bars 20.1 The employee may request, either at the time the vehicle is ordered or at any subsequent time, the addition of any accessories approved by the lease hire company. This will be subject to written approval from the Transport Services Manager. An approved dealer will then add these to the vehicle at the employee s expense If a driver pays for accessories such as a tow bar or roof rack it can be removed at the end of the lease contract, however they must ensure the vehicle is made good and any damage repaired Income Tax is chargeable on all accessories fitted to the lease car. Therefore, it is the responsibility of the employee to notify the Trust of the item and the full list price excluding VAT of the item and the price paid Courtesy and Relief Vehicles 21.1 A courtesy vehicle will be provided free of charge under the following circumstances: Whilst the vehicle is undergoing accident repairs at an approved repairer When the car breaks down and requires recovery When the vehicle has been booked in for repairs and servicing using the appropriate booking service Printed copies valid only if separately controlled Page 11 of 19

12 21.2 Courtesy vehicles are not provided under a contract, but are provided free of charge by a garage or accident repair shop whilst they are repairing a vehicle. The vehicles are provided as part of the garage or repair shop s service, but are not guaranteed, and are provided on a first come, first served basis. Courtesy cars must be booked and it may be necessary to wait until a vehicle becomes available If the leased vehicle is a total loss after an accident, a relief vehicle (hire car) will be provided for the first 48 hours, free of charge, to enable the driver to make arrangements for a replacement vehicle. At the end of the 48 hours the relief vehicle (hire car) will be collected from the driver, or he/she can continue with the vehicle but will be responsible for the hire charges unless the costs can be recovered from the third party If the leased vehicle is stolen, a courtesy vehicle will not be provided. A hire car will be provided until it is possible to replace the stolen vehicle with a lease vehicle at the end of its contract or one subject to early termination. The employee will be responsible for hire charges if for example keys are left in the vehicle, bags are left unattended and the key removed etc Long Term Sickness, Maternity Leave and Other Authorised Absences 22.1 In the event that an employee is absent from work on sick leave, maternity leave or other authorised absences, the employee, who has contracted for private use, may choose to continue the private use of the car The business fuel allowance will stop for the duration of the absence; this is because the employee is no longer undertaking business mileage and does not purchase fuel for business use When the employee has an extended period of maternity or sick leave, the full employer s contribution may be removed, at the Trust s discretion. As a result the driver will pay the full cost of the lease car On return to work the employer s contribution will be reinstated, based on a new estimate of the annual business mileage if applicable If the employee chooses to return the vehicle they will be liable for a financial penalty, on account of early termination of the contract, except in exceptional circumstances to be determined by the Trust Career Breaks 23.1 If an employee takes a career break in excess of three months, the car will be returned and subject to early termination. This will apply even if the employee remains in the employ of the organisation If the career break is less than three months, and the employee remains in the employ of the organisation, they can retain the use of the car. The full employer s contribution will be removed and as a result the driver will pay the full cost of the lease car for that period. Printed copies valid only if separately controlled Page 12 of 19

13 24.0 Transfers to another Public Sector Organisation Where an employee voluntarily transfers to another public sector organisation, they will be encouraged to transfer the car to the new employer. If the new employer does not accept the transfer, the employee will pay the early termination costs Transfer to Another Position within the Trust 25.1 If the employee changes jobs or voluntarily takes on a new role within the same organisation, and there is a significant change in business mileage, they may choose to keep the car at a revised charge If the employee chooses to return the vehicle, they will be liable for a financial penalty, on account of early termination of the contract If there is a reduction in business mileage due to a change in work duties or work base that is not voluntary, the driver may retain the use of the car but their contribution will be adjusted to remove payment for fuel for the reduced business mileage. This applies where there is a continued requirement for business travel and at the employer s discretion If the employee is transferred by the Trust to a new position that does not require the use of a car, the car will be returned at no cost to the driver other than excess private mileage or excess damage. In exceptional circumstances and at the Trust s discretion, the driver may be permitted to continue to use the car on a full cost recovery basis i.e. no contribution from their employer Termination of the Contract Hire Agreement 26.1 Employees are advised to seek advice from the scheme manager before terminating the contract If any of the following events occur, the employee's right to a car within the scheme will discontinue forthwith. Any costs resulting from the early termination of the contract will be borne by the employer or the employee as described below The cessation of the employer's entitlement to possession of the vehicle under its agreement with the leasing company The vehicle for whatever reason becomes, in the opinion of the leasing company, uneconomic to repair and/or maintain The total loss, whether by theft or otherwise, of the vehicle for three consecutive months The termination of the employee's contract of service with the employer whether by virtue of death, dismissal, redundancy, retirement, ill health or otherwise outside the employee s control The employee commits any breach of the terms of the hire agreement, express or implied. Printed copies valid only if separately controlled Page 13 of 19

14 Any meeting of the employee's creditors is called or the employee commits any act of bankruptcy or any attempt be made to levy distress against the vehicle by reason of the employee's indebtedness The termination of the employee's contract of service following voluntary resignation Prolonged absence by the employee from his/her official duties Career breaks that exceed three months The vehicle covering private mileage, which in the opinion of the Scheme Manager is abnormal and causes concern for maintenance and value Failure to pay money due to the employer from the employee under this agreement within thirty days of the same becoming due The employee becoming disqualified from holding or for any reason ceasing to hold a valid licence entitling him/her to drive a car In the absence of any of the aforementioned events, the expiration of the period of hire specified above, or any extensions of the same When, in very exceptional circumstances an employee applies to terminate his/her participation in the scheme Any other very exceptional circumstances not provided for above The Trust will pay the early termination charge in respect to paragraph 26.0 sections and Under other circumstances, the early termination charge will be paid by the employee In the event of early termination detailed above, the employee will be liable to pay: the early termination charge imposed by the leasing company (except as set out in 26.3) any outstanding insurance premium any costs arising from the condition of the car any excess private mileage 26.5 At least one month s notice must be given of early termination of the contract. The employee must cooperate in the reallocation of the car to mitigate costs to the Trust The Trust may delay salary payments in order to resolve any issues arising from failure by the employee to provide adequate notice. Printed copies valid only if separately controlled Page 14 of 19

15 27.0 Managing Occupational Road Risk 27.1 All lease car drivers will be required to complete a Risk Assessment (every 3 years) All lease car drivers will be required to attend a half day classroom based driver awareness workshop All lease car drivers will be required to complete a half day on road driver awareness session Monitoring Compliance and Effectiveness 28.1 The Transport Service Manager will be responsible for monitoring compliance of this policy through quarterly review meetings This policy will be reviewed annually by the Directorate of Facilities & Information Associated Documents 29.1 Northern Lincolnshire & Goole Hospitals NHS Foundation Trust Travel Plan 29.2 Policy & Procedure for Claiming Travel & Subsistence (FMP034) Policy on Trust Travel (FMP031) Medical and Dental Staff Terms and Conditions of Service Carbon Reduction Strategy (FMM003) Trust Car Scheme - Salary Sacrifice (FMP013A) 30.0 References 30.1 There are no references Definitions 31.1 There are no definitions. Printed copies valid only if separately controlled Page 15 of 19

16 32.0 Consultation 32.1 Facilities & Information Senior Management Team Formal Executive Team Joint Staff Consultation Committee Medical & Dental Bargaining Group HCC MAC Dissemination 33.1 Facilities & Information Senior Management Team Transport Services Manager Formal Executive Team Joint Staff Consultation Committee Medical & Dental Bargaining Group HCC MAC Document History 34.1 This policy replaces and supersedes the Lease Car Policy Version 2.1. Printed copies valid only if separately controlled Page 16 of 19

17 35.0 Trust Car Scheme Key Features: 1. The Trust Car Scheme is available to all employees who are required to travel at work. 2. All other permanent employees of the Trust can apply to join the scheme at the Trust s discretion however must be able to fulfil the full term of the lease contract. 3. A qualifying driver will travel at least 3,000 miles per annum. 4. All qualifying drivers will automatically be offered a Trust Car. 5. Where the offer of the car is reasonable and the offer is declined, the employee can use their private car for work and be reimbursed the Private Car Allowance (PTR). 6. All privately owned cars used at work must be registered on the GreyFleet register and approved; all cars must meet the minimum standard for a business car. 7. If the Trust car is used privately; the employee has a free choice of car provided that the car is suitable for the employee s business activities and a charge will be made for the private use. 8. Qualifying employees can chose to make payments by salary deduction or salary sacrifice; a car allowance will be paid to cover Trust s contribution for the business use and business fuel. 9. Salary Sacrifice is the Trust s preferred method of payment and qualifying employees will receive an incentive to use salary sacrifice. 10. Non qualifying employees, not offered a car, can join the scheme under a salary sacrifice arrangement subject to the scheme rules. 11. The Private Car Allowance will be the Public Transport Rate published in NHS Terms and Conditions (Agenda for Change) Section 17 Appendix A. The electronic master copy of this document is held by Document Control, Office of the Medical Director, NL&G NHS Foundation Trust. Printed copies valid only if separately controlled Page 17 of 19

18 Appendix A Allowances and Enhancements 1.0 Mileage Allowances Salary Deduction Scheme: The Trust contribution towards the car is: 0 2,999 business miles per annum 45p per mile 3,000 6,999 business miles per annum 1, plus 19p per mile 7,000 8,999 business miles per annum 1, plus 21p per mile Over 9,000 business miles per annum 1, plus 23p per mile Business Fuel Allowance HMRC advisory Fuel Rates apply 1.2 Salary Sacrifice Allowance Up to 6,000 business miles per annum Over 6,000 business miles per annum 45p per mile 25p per mile 1.3 Private Car Allowance Non qualifying drivers Qualifying drivers that decline a car Standard User Rate 24p per business mile 1.4 Reversion Car Allowance If an employee reverts to salary deduction due to a life style change the salary deduction car allowance will apply If an employee voluntarily changes to salary sacrifice the salary sacrifice car allowance will apply 1.5 Salary Sacrifice Incentive Qualifying drivers: The salary sacrifice quote will be adjusted to cost per month less than a comparable salary deduction quote where possible. 2.0 Environmental Enhancements CO 2 Value between 0 and 99-10% CO 2 Value between 100 and 12-5% CO 2 Value between 121 and 140 0% CO 2 Value between 141 and % N.B. as percentage of prevailing insurance premium Printed copies valid only if separately controlled Page 18 of 19

19 3.0 CO 2 Restrictions Year Year Year N.B. year 1 start from the approval of this policy 4.0 Risk Reduction Enhancements Additional Drivers Young and inexperienced drivers Plus each year between 17& Private Mileage: Below 5,000 miles -5% 5,000 7,999 miles 0% % For each additional 2,000 miles Plus 2.5% No Claims during the year -5% For each claim +5% 5.0 Transitional Enhancement (staff transferring in) Limited to the difference in cost to the employee of their current car and the Standard Scheme Printed copies valid only if separately controlled Page 19 of 19