Title: Outcome Statement: Travel Expenses Policy To provide a comprehensive guide for the reimbursement of staff travel and associated expenses for those staff on Agenda for Change Terms and Conditions which are processed and paid through payroll. Written By: Reviewed By: In Consultation with: Donna Newman Financial Services Manager Daryl Chapman Travel Policy Lead Steve Ham Deputy Director of Finance HR, Staffside representatives (incl West Norfolk), Sustainability Committee representative Approval By and Date: Staff Partnership Forum May 2011 With Reference To: Associated Trust Policies: Applicable To: Agenda for Change terms and conditions Lease Car policy All staff For Use By: Reference Number: All staff F004 Version: 01 Published Date: June 2011, effective from 1 st August 2011 Review Date: May 2014 Impact Assessment: Reason for Development / review Monitoring and Implementation of policy: april 08 Equality Impact Assessment - Old policy circa 1998 no longer fit for purpose Payroll liaison group.
1 Introduction & Scope 1.1 This policy deals with staff travel and associated expense for staff on Agenda for Change Terms and Conditions which are processed and paid through payroll because of tax and national insurance implications. 1.2 This policy includes staff employed on Medical Terms and Conditions other than where specific terms are covered in the appropriate M&D pay circular. 1.3 Staff employed under any other terms and condition such as Modern Reward Strategy or other agreements should refer to these. 1.4 Transitional rules will be applied for staff on the existing Lease Car or Cash for Car schemes (See Appendix 5). 2 Purpose 2.1 To ensure all employees are aware of the relevant entitlements and that they are applied consistently and fairly across Norfolk and Waveney Mental Health NHS Foundation Trust (hereon known as the Trust). 3 Environmental Issues 3.1 In drawing up this policy, the Trust is conscious of its environmental responsibilities as a public sector employer, and the following principles underpin this policy and its application, and should be taken into account by all staff; 3.1.1 Any journeys undertaken on NHS business should be absolutely necessary, and should be planned in such a way (taking into account service needs) that the minimum mileage is incurred and the minimum amount of time is spent undertaking the journey. Individual members of staff and their managers have a responsibility to ensure compliance. To assist this, the Trust has compiled a matrix of fixed mileage for a number of regular journeys set at the shortest route see Appendix 6. 3.1.2 Wherever possible, staff should take colleagues attending the same meeting or visit with them as passengers, to avoid additional vehicles undertaking the same journey. The reimbursement for carrying passengers is set out in Appendix 1. 3.1.3 Journeys should be planned in order that multiple visits can be undertaken in a single round trip, in order to avoid a series of single visits or meetings. 3.1.4 The need for face to face meetings should be challenged regularly, and more use should be made of alternative options, such as telephone conferences, virtual discussions via email and the use of video conferencing facilities where these exist. 3.1.5 Normal staff meetings should, wherever possible, be used as opportunities for updates/training/communication of key issues to avoid the need for staff having to attend multiple sessions. 3.1.6 The lease car policy (See Appendix 4) applies an environmental adjustment to the Trust contribution to reflect vehicle emissions. These limits will be reviewed every three years to reflect changes in average vehicle emissions. 3.1.7 Staff should be encouraged to consider the use of bicycles on official business where appropriate. The reimbursement payable to staff is set out in Appendix 1 of this document.
4 Travelling expenses General Principles 4.1 General 4.1.1 All employees who are currently classified as standard users (e.g. do not exceed 3,500 business miles per annum) will claim mileage using the P8 travel and expense claim at the rates set out in Appendix 1. 4.1.2 Employees who expect to exceed 3,500 business miles per annum will be offered a lease car. See separate lease car policy at Appendix 4. If the employee refuses a lease car they will be permitted to continue to claim under the standard users rates so long as their business mileage does not exceed 8,000 miles per annum. This is a departure from the Agenda for Change Terms and Conditions, and has been provided for those staff not wishing to commit to a new car lease and the associated pay deductions. This departure and the associated mileage threshold will be reviewed on the 3 rd anniversary of the adoption of this travel policy. 4.1.3 Employees who expect to exceed 8,000 business miles per annum who do not accept the lease car offer will be reimbursed at the public transport rate set out in Appendix 1. 4.1.4 Employees using public transport are expected to travel at standard rates i.e. in the case of rail fares at economy/standard rate. 4.1.5 On occasions where it is deemed to be appropriate for an employee to ask to travel by air on official business, the employee s Budget Holder should first satisfy themselves that this is the most appropriate method of travel assessing its environmental impact and value for money. If air travel is subsequently approved, it should be booked in such a way as to source the most financially advantageous price. 4.1.6 A mileage matrix has been provided which sets out the expected miles to be claimed between common locations (see Appendix 6 for example refer to LINX for most up to date version). Variations from these mileages will only be allowed where it has not been possible to travel the most direct route (e.g. road works). 4.1.7 Claims between home and the employee base site are not allowable, the only exception being where an employee incurs additional costs in attending an emergency call out or under the terms of paragraph 4.7. 4.1.8 Employees who are based at a designated site shall be paid the appropriate mileage rate, limited to the distance which would have been travelled if the journey had started and finished at the designated headquarters, or the distance actually travelled, if less. 4.1.9 Employees who are based at home for mileage purposes shall be paid the appropriate mileage rate for all journeys by the most direct route from their home to all places necessarily visited on duty and back to their home. 4.1.10 Figure 1. shows a hypothetical example of an employee who lives 3 miles from their Base, and 15 miles from the site of an external business meeting - X (Note: this could be another Trust site). The distance between the Base site and X is 17 miles. Figure 1. Lesser of: Base 3 17 Base to X Home to X (actual distance travelled) 17 miles 15 miles Home 15 X Claimable mileage 15 miles
Figure 2. shows a hypothetical example of an employee who lives 3 miles from their Base, and 15 miles from the site of an external business meeting - X. The distance between the Base site and X is 11 miles. Figure 2. Lesser of: Home Base to X 11 miles 3 15 Home to X (actual distance travelled) 15 miles Claimable mileage 11 miles Base 11 X If the employee travels straight to X from home, then expenses can only be claimed for travelling 11 miles. If the employee then goes to work, a further 11 miles can be claimed. If, on the other hand, the employee returns home, a further 11 miles can be claimed. 4.1.11 Where an employee undertakes several journeys in one day, the above rule shall only apply to the first and last journeys of the day if these are not between the Base and location visited. 4.2 Public Transport Mileage Rate 4.2.1 Standard mileage rates shall not apply if an employee uses a private motor vehicle in circumstances where travel by a public service would be appropriate. For such journeys the public transport rate set out in Appendix 1 shall be paid unless this is higher than the employee s normal reimbursement rate, when the lower rate shall be paid. 4.2.2 Employees using their own vehicle to attend training courses and events may claim mileage at the applicable business rate as specified in this policy. 4.3 Rail Travel 4.3.1 Employees travelling by public transport should apply for a rail warrant in advance of their journey from the Finance Department, using the email request form available on LINX. Where an employee is unable to request a warrant they should purchase the best priced ticket available in line with paragraph 4.1.4 4.4 Standard user 4.4.1 The standard mileage rates as set out in Appendix 1 will be paid to employees who use their own vehicles for official journeys and qualify under the terms of section 4.1. 4.4.2 Each individual has a responsibility to ensure that the vehicle is registered on the ESR payroll system via a P9 form, and that all the requirements of the Trust are met e.g. a valid MOT certificate, insurance document and vehicle registration are presented to the line manager, and that the employee has a valid driving licence. The MOT certificate, insurance documents and driving licence should be presented annually to the line manager to confirm that the details on ESR are correct, as the P9 is only effective for one year. Should this form not be returned in time for its annual renewal, any mileage claimed will be paid at the Public Transport Rate set out in Appendix 1. 4.4.3 The employee s insurance must cover business use if business mileage is being claimed for. Some insurance companies will also consider travel to courses or other sites as
business travel and therefore employees must contact their own insurers to confirm that the vehicle is covered appropriately. 4.4.4 If an employee will be claiming mileage in multiple vehicles, then each one needs to be registered via a P9 form. 4.4.5 If a vehicle is not registered on the ESR system via a P9 form, then business mileage at the full rate cannot be paid. Only public transport rate mileage (Appendix 1) may be claimed in these circumstances. 4.5 Passengers 4.5.1 Where passengers are carried (and their travel expenses would otherwise be payable by the Trust) passenger reimbursements at the rates set out at Appendix 1 shall be paid. 4.6 Attendance at or Return to Work outside of normal working hours 4.6.1 This paragraph applies to employees who are required to return to or attend their place of employment outside their normal hours, in circumstances where they would be entitled to overtime or time-off in lieu. In these circumstances, any expenses which are in excess of the expenses they incur as a result of their normal attendance at work and which are actually and necessarily incurred in travelling to and from home shall be reimbursed. This will be on the basis of the applicable business mileage rate as specified in this policy. 4.6.2 Claims for expenses will not be met when no additional expenditure is incurred, e.g. when the employee concerned has a season ticket, or where the lapse between two consecutive periods is sufficient short for it to be considered reasonable for employees to remain at or near their place of employment. 4.7 Excess travel 4.7.1 The reimbursement of excess travel costs may be payable for a period of four years from the date of transfer where there is a change of work location resulting from: A reorganisation of service; or An acceptance of another post as an alternative to redundancy; or An employee being required by their NHS employer to carry out temporary duties with another employer and additional travel costs are incurred. 4.7.2 Employees are entitled to claim excess mileage if the new base is further from their home than the old. The difference between the miles travelled to the old base and the miles travelled to the new base can be claimed. This will be considered on an individual basis via line manager agreement regarding the most suitable route to be taken. 4.7.3 Payments will be based on the extra mileage travelled calculated at the public transport rate. Once entitlement has been established, the initial set up of the excess travel payments will be completed using a P10 form, and subsequent payment will be made monthly via the payroll system, based on submitted P10A claims. These forms must be approved and signed off by the line manager. 4.7.4 Entitlement to excess travel will cease If any of the following conditions apply: On leaving employment of the Trust On voluntarily applying for and accepting a change in post On subsequently accepting promotion where the increase in salary is greater than the value of the excess travel payment On change of home or work place where excess travel costs are no longer incurred
4.7.5 Should an employee change their contracted hours, number of days they work each week, annual leave entitlement, base or home address during the four year period the manager should review the excess mileage payment accordingly and complete a P3 if there are any changes regarding the payable amount. 4.7.6 At the end of the period for which excess mileage is payable, the manager should complete a P3 form to end the allowance. Both the manager and employee are required to authorise the form. 4.8 Public Transport Disputes 4.8.1 Where public transport is disrupted and employees are required to attend work, extra cost incurred relating to hotel or other accommodation, or travel to or from the normal place of work, may be claimed, if authority to do so has been agreed in advance and where there is notification of a planned disruption in advance. 4.9 Incidental/Out of Pocket Expenses 4.9.1 The Trust will meet the cost of reasonable out of pocket business expenses for which it is not normally possible to obtain receipts. Examples of such expenses are tolls, taxis, tube and bus fares. In order to avoid misunderstanding, where possible these should be agreed in advance. 4.9.2 Claims must be limited to the actual amount of expense incurred, and not claimed as a round sum allowance. All items claimed should be itemised and described as fully as possible on an expenses claim form (Form P8 - see Appendix 3). 4.9.3 Employees who are required to make business calls using their home telephones may reclaim the costs of doing so. The amount to be claimed, plus VAT should be entered on the claim for reimbursement of telephone charges, with supporting documentation. The Trust will not bear the cost of any private calls. 4.10 Job Interview Expenses 4.10.1 Please refer to the Recruitment Guidance document for further information. 4.11 Car parking and parking fines 4.12 Parking costs incurred in the course of travelling away from home or the normal place of work (i.e. the site at which an employee is based) in the performance of duties may be claimed on an expenses claim form (P8). 4.13 The costs of parking at the normal place of work may not be claimed. Under no circumstances will the employer pay or reimburse the employee for parking fines, tow-away charges, clamping fees etc. 5 SUBSISTENCE 5.1 Purpose 5.1.1 The purpose of this section is to reimburse staff for the necessary extra costs of meals, accommodation and travel arising as a result of official duties away from home. Business expenses that may arise such as the cost of a fax or business telephone calls may be reimbursed upon receipted proof of expenditure.
5.2 Night subsistence 5.2.1 Short overnight stays in hotels, guest houses and commercial accommodation 5.2.1.1 Where possible all accommodation must normally be booked in advance and invoiced to the Trust. 5.2.1.2 When an employee stays overnight in a hotel, guest house, or other commercial accommodation with the agreement of their manager, the overnight costs will be reimbursed as follows: - The actual receipted cost of bed and breakfast up to the normal maximum limit set out in Appendix 2; plus A meals reimbursement (with receipts) to cover the cost of a main evening meal and one other day-time meal (excluding alcohol) at the rate set out in Appendix 2. 5.2.1.3 Where the maximum limit is exceeded for genuine reasons (e.g. the choice of hotel was not within the employee s control or cheaper hotels were fully booked) reimbursement in excess of the maximum limit may be granted at the discretion of the relevant budget holder. 5.2.1.4 Where accommodation and meals are provided without charge to employees (e.g. on residential courses), an incidental expenses allowance at the rate set out in Appendix 2 will be payable. All payments for this allowance are subject to the deduction of appropriate Tax and National Insurance contributions via the payroll system. 5.2.2 Short overnight stays in non-commercial accommodation 5.2.2.1 Where an employee stays for short overnight periods with friends or relatives or other noncommercial accommodation, the flat rate sum set out in Appendix 2 is payable. This includes an allowance for meals. No receipts will be required. 5.2.2.2 Employees staying in accommodation provided by the employer or host organisation shall be entitled to a reimbursement to cover meals which are not provided free of charge up to the total set out in Appendix 2, subject to the production of valid receipts. 5.2.3 Travelling overnight in a sleeping berth (rail or boat) 5.2.3.1 The cost of a sleeping berth (rail or boat) and meals, excluding alcoholic drinks, will be reimbursed subject to the production of valid vouchers/receipts. 5.3 Day subsistence 5.3.1 A meal allowance is only payable when an employee is necessarily absent from home on official business, and more than five miles from their base by the shortest practical route. Day meal allowance rates are set out in Appendix 2. These allowances are not paid where meals are provided free at the temporary place of work or in the course of duties where staff may be expected to regularly work from other locations. 5.3.2 A day meal allowance is ONLY payable when an employee necessarily spends more on a meal than would have been spent at their usual place of work. An employee shall certify accordingly on each occasion for which day meal allowance is claimed but a receipt is not required. 5.3.3 Normally an employee claiming a lunch meal allowance would be expected to be away from his/her base for a period of more than five hours covering the normal lunchtime period of noon-2pm. To claim an evening meal allowance, an employee would normally be expected to be away from base for more than ten hours and unable to return to base or home before 7pm and as a result of the late return is reasonably expected to require an evening meal. Employees may qualify for both lunch and evening meal allowance in some circumstances. There will be occasions where, due to the time of departure, there will be
the necessity to take a meal but the conditions relating to the time absent from base are not met. This, and any other exceptions to the rules, may be allowed at the discretion of the line manager. 5.3.4 The scope and level of any other reimbursements will be determined by the Trust according to local needs. 5.4 Late night duties allowance 5.4.1 Late night duties allowance is payable to those working throughout the night, at the rate specified in Appendix 2. This allowance will be subject to deduction of appropriate tax and national insurance contributions via the payroll system. 5.4.2 An employee who is required to work late at night in addition to a day duty may be paid an evening meal allowance at the rate set out in Appendix 2. It will be for the manager to determine who will be entitled and in what circumstances. 6 REIMBURSEMENTS 6.1 Tax and national insurance status of expense claims 6.1.1 The Trust operates a taxable at source facility for the payment of expenses and benefits. This facility enables payment via the payroll of mileage claims where the mileage rate payable by the employer exceeds that determined by the Inland Revenue as being reasonable. The profit (excess) element therefore is subjected to both tax and national insurance. 6.1.2 As the payroll system is able to calculate the tax and national insurance due on the profit element only, this obviates the requirement for producing annual self-assessment certificates (P11D) for employees and thus no requirement for employees to report these expense on their tax return. 6.1.3 For lease car users, please see the lease car policy for guidance on tax matters. 6.2 Mileage Claims 6.2.1 All official mileage is to be detailed on the Trust s claim for mileage and travel expense form (P8). They should be submitted to the employee s line manager for authorisation on a monthly basis, in good time for the submission deadline. 6.3 Reimbursement requirements 6.3.1 Reimbursement will only be made on the production of receipts or invoices, except in limited circumstances specified in this policy where expenses can be reimbursed by way of allowances for which receipts are not required or for incidental/out of pocket expenses. 6.3.2 Reimbursement of expenses will, unless detailed in this policy, be made in accordance with the rates set out in the Agenda for Change Terms and Conditions. 6.3.3 Expenses are to be recorded in detail on the Trust s expense claim form (P8). They should be submitted to the employee s line manager for authorisation on a monthly basis, in good time for the submission deadline. Claims will not be paid if they are submitted more than three months after the expenses were due to be claimed, unless in exceptional circumstances such as long term sickness, and will be subject to additional authorisation by the Director of Finance or his/her nominated Deputy. Reimbursements will be made via payroll upon receipt of authorised claims. 6.3.4 The P8 form must be signed by the employee and the form must be authorised by the nominated budget holder. Under no circumstances is any employee allowed to authorise his/her own expenses claim. See Appendix 3.
6.3.5 It is the policy of the Trust that its employees are only reimbursed the actual costs of expenses reasonably incurred wholly, exclusively and necessarily in the performance of the duties of their employment. Employees are expected to seek to minimise the costs without impairing the efficiency of the Trust and avoid any unnecessary cost to the Trust. 7 Summary of Roles and Responsibilities 7.1 Employees 7.1.1 Employees are to seek to minimise expenses where possible. Employees must only submit valid claims in line with this policy, and ensure that the certification requirements on the claim forms are met. The employee should agree in advance any non-routine expense to avoid any potential disputes. 7.2 Managers 7.2.1 Managers are to check and sign expenses claim forms in a timely manner in accordance with this policy, ensuring that the correct allowances have been selected. Managers must ensure that the certification requirements on the claim forms are met. 8 Other documents 8.1 The following documents should also be referred to: 8.1.1 Lease car provider terms and conditions 8.1.2 Line Managers Handbook 8.1.3 Agenda for Change Terms & Conditions 8.1.4 Relocation Expenses
APPENDIX 1 Mileage rates from 1 April 2011 Standard user Up to 1000cc 1001-1500cc Over 1500cc Cars Up to 3,500 37.4p 47.3p 58.3p Thereafter 17.8p 20.1p 22.6p Motorcycles 125cc or less Over 125cc Up to 5000 miles 17.8p 27.8p Over 5000 miles 6.7p 9.9p Pedal cycles 20p Passenger allowance 15p (up to a maximum passenger allowance of 30ppm per trip) Public Transport Rate 24p Lease car contribution Lump sum Rate per mile Up to 1,800 per annum dependant on CO2 emissions 16p (based on April 2011 fuel costs) Her Majesty s Revenue and Customs (HMRC) deems there is a profit element included where rates per mile exceed their Approved Mileage Rate. The income tax and national insurance liability is deducted at the time reimbursement is made via the payroll for any mileage paid in excess of these values.
APPENDIX 2 Subsistence Allowances Schedule of allowances 1. Night allowances first 30 nights Actual receipted cost of bed and breakfast up to a maximum of 55 (subject to the provisions of paragraph 5.2.1.3) 2. Meals allowance Per 24 hour period 20.00 3. Night allowances in non-commercial accommodation Per 24 hour period 25.00 4. Night allowances after first 30 nights Maximum amount payable 35.00 5. Day meals subsistence allowances Lunch allowance 5.00 Evening meal allowance 15.00 6. Incidental expenses allowance (this allowance is subject to tax) Per 24 hour period 4.20 7. Late night duties allowance (this allowance is subject to tax) Per 24 hour period 3.25
APPENDIX 3 P8 Claim for Mileage and Travel Expenses
APPENDIX 4 Lease car policy The minimum business mileage to qualify for the lease car scheme is 3,500 miles per annum. The Trust lease car contract runs for a minimum of three years. If the contract is terminated prior to the agreed date an early termination charge is payable. If the early termination is at the request of the employee, he/she will be held responsible for payment of this charge. The detailed terms and conditions are included in the pack provided by the lease car provider. Initial application The scheme is a user chooser scheme in so far that the employee can select which make and model of car is leased. However the level of subsidy is dependent on the emissions (CO2 per km) of the vehicle. This is a sliding scale which actively encourages employees to choose more environmentally friendly vehicles: CO2 Emissions Trust Contribution 100g/km or less 1,800 101g/km to 120g/km 1,500 plus 15 for each g/km below 120g/km 120g/km to 150g/km 1,500 151g/km to 174g/km 175g/km or more 1,500 minus 60 for each g/km over 150g/km Nil The subsidy is set at a maximum of 1,800 per vehicle regardless of business or private mileage incurred and subject to the employee continuing to remain eligible for receipt of the subsidy. The emissions bandings and the related Trust contribution will be reviewed every three years. The employee will also be reimbursed for planned business mileage at the rate specified in Appendix 1. This allowance will be agreed at the start of the lease and added to the Trust contribution for the year. An annual balancing allowance/deduction will be made for any under/over payment relating to business mileage. The mileage rate for lease cars will be reviewed in January each year and updated for 1 st April to reflect the change in cost of fuel. This adjustment will be calculated with reference to The AA Running Cost tables (http://www.theaa.com/motoring_advice/running_costs/index.html) with a baseline fuel cost as at April 2011. Fuel costs will also be reviewed every July, and should the cost of fuel have changed by +/- 10% from the January review, an adjustment will be made to the mileage rate from 1 st October. This adjustment will be calculated with reference to The AA Fuel Price reports (http://www.theaa.com/motoring_advice/fuel/index.html) with a baseline of April 2011.
The remaining costs of the car (i.e. balance of the lease payments, administration charge and insurance costs, plus VAT at the applicable rate on this balance) will be deducted directly from the employee s salary. The lease car provider will advise the employee of these deductions prior to the contract commencing, and any changes to these deductions will be communicated in advance by the lease car provider. In addition to the normal lease costs, the employee agrees to accept all costs in relation to the following: All insurance excesses All service and repair bills arising out of negligent care or abuse of the vehicle All related valeting services All costs for providing fuel for the vehicle plus top up oil and other fluid levels between services in accordance with manufacturers recommendations Any costs incurred in keeping the vehicle in a clean and tidy condition The employee will be required to sign an agreement prior to the car being ordered covering all aspects of the lease. Line manager approval will also be required to confirm that the level of business mileage stated in the agreement will be met. The Trust retains the right to turn down a request for a lease car if it is considered that the terms of the lease agreement will not be met by the employee. During the lease For the period of the agreement, the employee agrees to: Keep the car clean and tidy Arrange for and submit the vehicle for servicing at due intervals Carry out weekly and other owner maintenance checks and adjust as necessary tyre pressure, fluid levels, etc. in accordance with manufacturer s instructions Provide full details of any accident and to comply with any instructions given in such circumstances by the Trust, the lease car company or the insurance company. Ensure the security of the vehicle at all times including parking safely/garaging the vehicle overnight at the employee s home and at the employee s own expense The lease car company will arrange for full maintenance of the vehicle including: Routine servicing as per manufacturer s instructions Mechanical and electrical repairs arising as a result of fair wear and tear (repair work necessitated by your negligence or abuse will be recharged to you and recovered by deduction from salary unless otherwise agreed) Replacement of tyres, batteries, exhausts, etc. as a result of fair wear and tear Servicing and repairs will be at franchised agents as specified by the lease car provider A booklet providing further ownership information will be supplied with the car and this should be kept in the car. It is essential that you read and comply with the lease car company s procedures at all times. This booklet will detail the relevant contact details for any queries.
Scheme requirements Employees are required to submit a monthly submission of total miles (split by private and business) by the method prescribed when signing the lease contract. Failure to submit by the payroll cut-off date of the 7 th of the following month may lead to disciplinary proceedings or removal of the lease car allowance. The vehicle must be made available at all reasonable times for the employee s use on business. Servicing and repair work should, as far as possible, be scheduled not to clash with the occasions that the employee needs the vehicle for business purposes. The employee is required to contact the lease car provider to make suitable arrangements for insurance should the vehicle be used for private use overseas, and all related costs will be at the employee s own expense. The employee is required to advise the lease car provider of any changes to the list of approved drivers to the vehicle. Where practical to do so, the lease car should be made available to other staff for use on official Trust business. In these instances, the business mileage will be treated as if the lease car holder had incurred them directly, and therefore included (and reimbursed) within the annual business mileage allowance. The employer will arrange for all P11D benefit in kind calculations to be completed and submitted to Her Majesty s Revenue and Customs (HMRC). Full details of such submissions will be provided to the employee upon request and in accordance with statutory regulations. Any parking fines or other liabilities arising from the way the vehicle is used or driven (particularly breaches of the Road Traffic Act) are the employee s responsibility and not that of the Trust. The employee must therefore indemnify the Trust against such charges and accept responsibility for ensuring that the vehicle is maintained in a roadworthy condition and not used in contravention of any statute, statutory instrument or other regulation at the time being in force. At the end of the lease If, at the end of the lease agreement should the employee decide not to remain within the scheme and no claims have arisen on the vehicle, the lease car provider will obtain a certificate from the insurance company, which will certify no claims have been made during the lease car period(s). This should allow the employee to negotiate an appropriate no claims bonus with most insurance companies. If, at the end (or on the termination) of the contract hire, the employee fails to return the vehicle within the required timeframe, the Trust may repossess the vehicle at its convenience without any liability or recompense to the employee. It is the employee s responsibility to ensure the vehicle is in good order at the end of the lease. The employee will be charged for any damage to the vehicle in excess of acceptable wear and tear, and therefore it is in the employee s interest to carefully inspect the car on delivery and after completion of any servicing or repair work. The employee will be responsible for payment in respect of any mileage in excess of that stated in the original lease contract. This excess mileage cost will be deducted from the employee s monthly pay. These charges will be detailed in the original lease contract. The employee will, given prior notice, arrange for inspection of the vehicle upon the request of the Trust or the insurance company if required. At the end of the contract the employee will be given the opportunity to purchase the vehicle at a fair market price to be determined by the lease car company.
APPENDIX 5 Transitional rules On adoption of this policy, the previous Lease Car and Cash for Car schemes will no longer be available to staff. To recognise the impact of this change in policy for staff on the existing schemes, a transitional period will be applied. Current Lease Car users Current lease car users will continue to receive the Trust contributions as at the commencement of the lease until the expiry of that lease. On expiry of the current lease, staff will have the option to move to the new lease car scheme, or claim mileage under the standard user rates, subject to the requirements of section 4.1 of this policy. Current Cash for Car users Current cash for car users will have their cash allowance reduced on the following basis: Year 1 Year 2 Year 3 AfC Bands 1-5 2,800 allowance 2,150 allowance New policy* All other staff 2,150 allowance New policy* *New policy refers to the options available to staff within this policy (e.g. new lease car scheme, standard user rate or public transport rate) as applicable During the transitional period staff will continue to claim business mileage at the 13.2p per mile rate. All current cash for car users can opt to move on to the new policy at any time during the transitional period.
APPENDIX 6 Mileage matrix Version 1 as at 27 April 2011 (refer to LINX for latest version)