FAQs. efits; The car scheme and how it works. Introduction

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1 FAQs This document has been prepared to answer questions that you are likely to have about the Affordable Car Scheme (Car Salary Sacrifice Scheme). It is set out in 3 sections: efits; Once your vehicle has been ordered please refer to details within the Driver Guide provided by CPC Drive, as from time to time the information within this document may change. The car scheme and how it works Introduction Tameside Hospital NHS Foundation Trust ( the Trust ) is introducing a new arrangement for its employees ( you ) which will allow you to be provided with a Trust provided car of your choice through CPC Drive. Under the arrangements the vehicle will be fully maintained and insured by the Trust for the whole of the agreement period. You will also need to agree to participate in a salary sacrifice arrangement for the period that the car is provided. This section provides further details on the way in which the Tameside Hospital NHS Trust Affordable Car Scheme works, and addresses questions which you will need to consider if you wish to participate in the Scheme. Please note that participation is completely voluntary. Why is the Trust introducing the Affordable Car Scheme? The Trust has already introduced other salary sacrifice arrangements for staff car parking and childcare vouchers, and is keen to offer you further flexibility in your overall reward package. Under the arrangements the Trust will provide a fully maintained car which takes advantage of the Trust s corporate purchasing power (which is passed onto you) and other savings for you outlined below. Other Trusts in the region have already introduced similar car salary sacrifice schemes which have proved very attractive to employees. If you wish to participate in the Affordable Car Scheme you should read these Frequently Asked Questions (FAQs) and the other related documents sent to you so that you fully understand how the arrangements work. They will also amend your current terms and conditions of employment. If you choose to participate in the arrangement and place an on-line order through the link provided on the Trust s intranet you should also refer to the details in the Driver Guide provided by CPC Drive (which may change from time to time). What is salary sacrifice? This new arrangement enables you to be provided with a new car of your choice. If you choose to be provided with a vehicle you will agree to a reduction in your monthly Basic Salary (your salary before taking into account any salary sacrifice arrangements) by an amount equivalent to the monthly Vehicle Value outlined when ordering your car. This Vehicle Value will not usually change over the course of the agreed period that the Trust will provide the car. By entering into this arrangement you will typically save tax, National Insurance Contributions (NIC) and pension contributions (for existing members of the NHS Pension Scheme). This is known as a salary sacrifice arrangement and is similar to the childcare voucher arrangement already operated by the Trust. Under the arrangement you will receive an Adjusted Salary (i.e. your salary after the salary sacrifice has been taken into account).

2 What are the benefits? The salary sacrifice arrangement (indicated above) allows eligible employees to benefit from Income Tax, NIC and pension contribution savings (for members of the NHS Pension Scheme ), fleet discounts and drive a brand new fully maintained and insured car for typically 3 years - for substantially less than a private lease arrangement. The idea is the arrangement provides a motoring package so that you only need to add fuel and oil! Each vehicle on the arrangement includes all servicing and maintenance, fully comprehensive motor insurance for the driver and their domestic partner, annual road fund licence, European Breakdown Cover, replacement tyres and even early termination insurance to cover events such as redundancy. The increase in VAT and NIC at the beginning of the year and higher fuel costs are another reason why the car arrangement is such a welcome addition as the cars on the arrangement can give excellent savings in fuel consumption. For example, a diesel engine SEAT Ibiza on the arrangement with 80.7 mpg (miles per gallon) could give you a monthly fuel saving of per month versus a diesel vehicle with 38mpg. That s a saving of per year in fuel alone. If you are within 10 years of retirement age we recommend that you consider the impact that salary sacrifice arrangements could have on your pension entitlement on retirement, and would refer you to the fifth question in the Eligibility and Impact on Pay Section for more information. Why should I consider salary sacrifice as a means of driving a new car? Because you are sacrificing gross salary you can save between 32% and 47% in Income Tax and National Insurance (dependent on your tax rate and whether you are contracted out of the State Earnings Related Pension Scheme [SERPS]). What will be the net amount to me? You will save tax, NIC and pension contributions (for members of the NHS Pension scheme) on the salary sacrificed. For example if you decide to take a vehicle through the arrangement and the vehicle has a value of 250 per month, you agree to reduce your salary by this amount. The vehicle is a diesel with Co2 emissions of 95 g/km and a list price of 17,000 and you will therefore pay tax on a benefit in kind value of 2,210 using the 2011/12 rates. Savings to you are dependent on your personal circumstances but would broadly be as follows for a member of the NHS Pension Scheme: For a basic rate taxpayer (paying NHS pension contributions of 6.5%) the net cost per month would be 198, representing savings of 52 per month. For a higher rate taxpayer (paying 6.5% pension contributions) the net cost per month would be 209, representing savings of 41 per month. For an additional rate taxpayer the net cost per month would be 201, representing savings of 49 per month. You will also benefit from substantial discounts secured by the Trust, and will not have to separately meet costs for insurance, maintenance or road fund licence (car tax disc). Could I get a similar deal by visiting my local franchised motor dealer? No, the tax, NIC and pension contributions savings are only available via a salary sacrifice arrangement through the Trust.

3 On what basis is the car provided? The Trust has entered into an agreement with CPC Drive, a leasing and fleet management company, to supply the cars ordered under the new car scheme. Once you have chosen your car, the Trust will enter into a contract hire agreement for that car and will then provide it to you under the salary sacrifice arrangement. The car is a company car for tax purposes and will be treated as a benefit in kind. At the end of the agreement employees will have the choice to hand the car back or to request a price to purchase the car at the market value based on the vehicle s age and mileage. What is a benefit in kind? The provision of a car under a salary sacrifice arrangement constitutes a Company Car arrangement and therefore triggers a benefit in kind charge. The benefit is calculated by reference to a percentage related to the CO2 of the vehicle and the list price of the vehicle. This CO2 related percentage determines the level of taxable benefit in kind i.e. the lower the emissions the lower the effective tax rate. The CO2 percentage will typically range between 10% to 35%. For example: An employee who is a 20% taxpayer decides to take a diesel car with a CO2 emissions figure of 90g/km and list price of 15,000. Under the arrangement the individual would pay 290 per year as a benefit in kind charge. This is calculated as follows: 15,000 x 13% (the CO2 related percentage) = 1,950 x 20% (the basic rate of tax) = 390 Assuming the cost of the salary sacrifice is 200 per month and the employee is a basic rate tax payer, with a pension contribution rate of 6%. The savings generated via the salary sacrifice arrangement would be 845 per annum, giving an overall net saving of 455 per annum. This saving does not include the generous savings you would get from the discounts available, or the savings on costs of insurance, maintenance or car tax discs, that you would have to pay if you arranged a vehicle outside of the arrangement. Will my benefit in kind charge change in the future? HM Revenue & Customs (HMRC) is keen to encourage drivers to use vehicles that are as green as possible. Therefore if you decide to take a vehicle with CO2 emissions below 95g/km there will be no change in the benefit in kind charge due until April If you take a vehicle with under the scheme your CO2 emissions will be between g/km, the appropriate benefit in kind related percentage related to your vehicle from 6 April 2011 to 5 April 2014 can be found at The rates applicable beyond 5 April 2014 have not been announced, and the rates above are subject to changes announced by the government, but are correct at the time of printing. Based on the example in question 9 above the maximum tax payable would be 540 in 2013/14, which would still give an annual saving of 305. How will the tax on the benefit in kind charged be taken from me? The Trust will notify the Tax Office when you take delivery of a car. The Tax Office will issue a tax code change which payroll will apply in order that the Benefit In Kind tax can be collected monthly from your salary. In some instances where HMRC cannot process the car details for

4 new cars within the tax coding before the end of the tax year there may be some adjustments regarding the collection of tax following the tax year end. Will I be able to see a potential cost of the car at the end of the agreement? Yes. At the end of the agreement period you will have the opportunity to purchase the car (or hand it back). The website will provide the estimated cost of the car when the quotation is requested should you wish to enquire about purchasing the car. Please note that this is only a figure and the actual price will need to be determined at the end of the agreement. What is HMRC's view on Car Salary Sacrifice Schemes? HMRC view this arrangement as an employment law rather than tax law matter, as you are free to agree a change in your remuneration with the Trust. By entering into this arrangement, you are agreeing to a reduction in your salary for the chosen term. In addition you must also agree to sacrifice your salary before you take delivery of your car. When will the salary sacrifice take effect? You will see the reduction in your salary within the month your car is delivered if prior to the 8th of the month, if after that then the reduction will take place in the following month. What other tax implications are there on me? If you take a car under the Affordable Car Scheme, you will be treated as having a company car and be liable to tax on the benefit in kind charge. In order to limit your tax liability, you need to choose the cars with the lowest benefit in kind charges and to take the greatest benefit from the scheme. Will the amount I pay increase if the company car tax percentage is increased? The amount you sacrifice will remain the same but if the company car tax rate increases, the additional tax will become payable and normally collected via a change to your tax code. What will affect the amount I sacrifice? The amount sacrificed will reflect the actual choice of car i.e. not only its CO2 emissions, but also the price to the Trust of the car (plus accessories), the available discount from the manufacturer, residual value, the length of the term chosen, selected mileage and insurance terms. What is included in the Affordable Car Scheme? The vehicle you choose Maintenance of the vehicle including all servicing, batteries, exhausts under normal wear and tear conditions. This excludes any damage to the vehicle and updates to satellite navigation systems Protections against penalty charges incurred as a result of exiting the scheme early due to you leaving your Employer and returning a vehicle as a result of resignation, redundancy, loss of life, loss of licence on medical grounds

5 Fully comprehensive motor insurance including all business travel for the Policy holder and their domestic partner. Any additional drivers are insured for social, domestic and pleasure purposes only. Annual Road Fund Licence Roadside Assistance (Homestart and Recovery UK and European Cover) Can I have more than one car under the car scheme? Yes, you can have up to two cars as you wish on the scheme. However, the Trust requires that you are paid certain statutory rates of pay, and salary levels to protect your entitlement to certain state benefits (see the second question in the Eligibility and Impact on Pay Section. Is there a maximum term for the car scheme? 36 months. At the end of the agreement, you can request a price to purchase the car at the market value based on the vehicle s age and mileage. Who is the vehicle leasing contract between? The Salary Sacrifice agreement is between the Trust and you, whilst the vehicle contract is between the Trust and CPC Drive. What paperwork needs to be completed? The website generates the Salary Sacrifice agreement when you are ready to order your selected vehicle. When will my car be ready for delivery? This varies greatly depending on the car chosen. Typically the waiting time is between 8 14 weeks. An estimated delivery date will be available once the order is placed. What is StopGap? If your new salary sacrifice car isn't due for at least 6 weeks, we can provide you with a fully insured and maintained StopGap car for a fixed monthly amount. The StopGap car can be delivered and collected within office hours nationwide and all we ask is that you take it for a minimum of 6 weeks and that the car doesn't exceed 1,000 miles per month. For more information about StopGap Cars call us on or stopgap@ss4c.com. Will quotations vary over time? Yes. Changes can occur in the amount of discount we are offered by manufacturers and quotes will take account of the changing cost of particular cars together with financing costs. How long is the quote valid for? All quotes will be valid for a period of 14 days but in order to accommodate the sign off process for you and the Trust, quotes will be refreshed at the point of order if this time limit has been exceeded. You will then have the opportunity to amend your car selection if the price has increased.

6 Once I have chosen a vehicle, is the level of sacrifice guaranteed? Once the order has been placed by the Trust for your chosen vehicle, the sacrifice will be honoured excluding manufacture price increases or exceptional circumstances. If the rate of VAT increases / or VAT rules change during the period that the car is provided, the Trust reserves the right to adjust the salary sacrifice arrangement to reflect the additional net cost of VAT the Trust has incurred/is unable to recover, in providing the car, (also see question 24 on Once the car is delivered section). I placed an order in the last few days but have now changed my mind. What can I do? You may cancel the order but there may be a dealer cancellation charge payable. This would be a maximum of 500 unless otherwise advised, (excluding Ford where cancellation fees apply from point of order, however you will be advised of the costs involved during the order process, after selecting your vehicle on the website). This will be deducted from salary. Eligibility and impact on pay and benefits Who will be eligible to join the car scheme? The car scheme is open to employees who have completed 6 months continuous service (and not subject to a current disciplinary period) with the Trust and have a full valid UK/EC/EEA driving licence [If you are in receipt of a car allowance, you are exempt from this service requirement]. You can take a car for yourself or for an immediate member of your family defined as spouse or partner, parent, spouse or partner s parent, child, (as long as they too have a full valid driving licence). Do I have to be in full time employment to be eligible for the car scheme? No. However, you will be unable to participate in the car scheme if this will result in your salary falling below the National Minimum Wage limit ( 6.08 per hour from 1 October 2011). To protect your entitlement to potential NIC based state benefits (e.g. statutory sick pay) you cannot participate in the Affordable Car Scheme if the salary sacrifice would reduce your gross annual salary below 7,225 (i.e. the Primary Earnings Threshold for NIC). Can I join the Affordable Car Scheme if I am within 4 years of retirement? No, not if you are within 4 years of retirement given that a typical term for employees of the Trust is 36 months. This is because your retirement benefits will be affected within the last 4 years of employment. I am on a fixed term contract can I participate in the Affordable Car Scheme? If you are on a fixed term contract you can participate provided that the agreement ends prior to the end date of your fixed term employment contract. A minimum 3 year Affordable Car Scheme agreement applies. I am in the NHS Pension Scheme? What effect will the Affordable Car Scheme have on my future pension? The fact that your contractual pay is being reduced means that your level of NHS pension contribution will be reduced thus resulting in an increase in your take home pay. A new NHS pension scheme will be in place from 1st April 2015 that will offer the following 2015 scheme- A Career Average Revalued Earnings scheme with benefits based on your pensionable earnings for your whole period of employment.

7 This move from the 1995 and 2008 schemes means that the membership of any salary sacrifice will affect your pensionable pay used in calculating your pension benefits under the new 2015 scheme. As such please consider the implications before applying for and joining a salary sacrifice scheme. Protected members of the 1995 scheme: - Your pension is 1/80th of the best of the last three years pensionable pay for each year of pensionable membership in this Section. You can not join the Affordable Car Scheme if you are in the 1995 scheme and within 4 years of retirement. The savings from the sacrifice arrangements could be used to pay additional pension contributions to the pension scheme if you wished which would help offset any reduction in your pension. In the unfortunate event of you dying in service or leaving or retiring on health grounds or prematurely during a period when you are participating in a salary sacrifice arrangement, your pension could be reduced. This is because your benefit entitlements including death in service benefits would be based on your Adjusted Salary and not on Basic Salary. Any impact would depend on the length of time that you have participated in the car scheme salary sacrifice arrangements. While such an event may be unlikely it is important that you are aware of this. At the end of the salary sacrifice arrangement your pensionable salary (which is considered for the purposes of assessing your benefits against the Annual Allowance test for pension taxation purposes) will increase. It is possible that such a change would result in a tax charge applying in respect of your pension benefits. In the event that you leave the NHS pension scheme while you have participated in a salary sacrifice arrangement, or shortly thereafter, there may be a similar reduction in the deferred pension or transfer value of your member benefits. Employees must consider what the impact will be on their own pension of participating in these arrangements. This is also subject to any changes the Government may bring in, in respect of the NHS Pension Scheme in the future. Does the salary sacrifice have any impact on state benefits? Most state benefits will not be affected by participation in salary sacrifice, unless participation in the car scheme means that your salary after the sacrifice is brought below the NIC Lower Earnings Limit. To protect your entitlement to certain future state benefits you cannot participate in the salary sacrifice arrangement if your Adjusted Salary were to fall below 7,225 (for the 2011/12 tax year). Is this a change to my terms and conditions of employment? Yes. In order for the car scheme to be effective the Trust will need to make amendments to your Terms and Conditions in accordance with the provisions of Section 4 of the Employment Rights Act You will be agreeing to these changes when you sign/electronically confirm the Salary Sacrifice agreement when you order your selected vehicle. I already participate in a salary sacrifice scheme. Can I participate in the Affordable Car Scheme as well? Yes. You will be able to participate in the car scheme providing your Adjusted Salary (post sacrifice salary) is not reduced below one of the following: National Minimum Wage, or;

8 The NIC Primary Earnings Threshold ( 7,225) Eligibility, is subject to the combined amount of all salary sacrifice arrangements not resulting in your Adjusted Salary falling below the above thresholds. What about maternity and sick leave? Occupational Maternity Pay (OMP) is based on your average weekly earnings by reference to your pre salary sacrifice figure i.e. your Gross pay during the qualifying period prior to going on maternity leave. The qualifying period is defined as the eight week period beginning fifteen weeks prior to the expected date of confinement (the qualifying period). In contrast Statutory Maternity Pay (SMP) is based on your Adjusted Salary (post salary sacrifice pay) received during the qualifying period prior to going on maternity leave. This means that for the 39 weeks that you are in receipt of SMP you will potentially receive a lower amount of SMP when compared to the pre-salary sacrifice position. However, you will be no worse off as your OMP will be based on your higher pre-sacrifice level of salary and for the Trust will continue to provide the vehicle throughout the period of maternity. For periods of maternity the salary sacrifice will be operated until the level of sacrifice reduces your Adjusted Salary to a level below Statutory Maternity Pay (SMP). At that time the salary sacrifice arrangement will be suspended until such time that your level of salary allows for the sacrifice to be operated again. The principles above also apply to periods of Adoption Leave. For Paternity Leave the salary sacrifice arrangement will continue to be operated unless an employee s Adjusted Salary for any given pay period falls below that statutory rate for that period. The Affordable Car Scheme will continue to be operated while you are in receipt of occupational sick pay unless your Adjusted Salary falls below the level of Statutory Sick Pay ( SSP ). In that event the salary sacrifice will be stopped until such time that your Adjusted Salary increases to a level which allows the salary sacrifice to be operated. In the intervening period, (including the period when you are only in receipt of SSP) the cost of the car Vehicle Value (i.e. monetary amount of salary sacrifice for the pay period) will be deducted from your net salary. Is there any impact on student loans? If you have a student loan it is recovered at a rate of 9% on gross annual earnings above 16,910 (the earnings threshold). Under a salary sacrifice arrangement you are agreeing to reduce your gross salary. This will result in a reduction in the amount of your student loan recovery where your gross earnings before the salary sacrifice are above the earnings threshold. If after taking into the salary sacrifice arrangements your gross earnings fall below 16,910 no deductions for student loans will be made. Once the car is delivered What happens if I do more than the mileage I selected when choosing my vehicle? When you choose your vehicle you have the opportunity to choose the annual mileage. If during the term you wish to change the mileage to more accurately reflect the actual mileage we can accommodate this. If you return your vehicle with more than the selected mileage you will be liable for an excess mileage charge to cover the expense of the additional depreciation and servicing costs that will have been incurred because of the additional mileage. The excess mileage rate will be included on the quotations.

9 What if the mileage is below the selected mileage? There will be no change to the salary sacrifice amount, however at the end of the agreement, any price provided to you to purchase the car will be based on the selected mileage at the start of the agreement rather than the actual mileage. If I request a price to buy the car at the end of the agreement, how will the value be calculated? The value will be set in line with the Kee data book price which is the industry reference guide for pricing of used vehicles based on the vehicle s age and mileage. Will I have to pay any additional charges at the end of the agreement? In addition to any excess mileage charges you will be responsible for meeting any unreasonable wear and tear charges that CPC Drive impose where the car has been returned in an unreasonable condition. The condition of the car will be assessed against the BVRLA (British Vehicle Rental & Leasing Association) guide to Fair Wear and Tear. The guide aims to provide an industry-wide accepted standard that defines fair wear and tear when cars are returned at the end of an agreement. Any charge payable will be payable from net pay. What happens if I decide I don't want the vehicle any longer? You are committing for the term you select. If you do decide you no longer want the vehicle you can obtain an early termination quotation at any time during the term of the agreement but you will be responsible for any charges arising. What happens if I resign? If you notify your Employer that you wish to resign during the first 6 months commencing from the delivery date of your vehicle, or if you resign and leave your Employer without giving prior notice during the first 6 months following delivery, you will be liable for an early termination charge to exit the scheme. Please note, if you have prior knowledge before ordering a car on the scheme that you will be leaving your employment during the term of the agreement, the early termination protection will not apply and you ll be liable for an early termination charge to exit the scheme. If you know that you ll be leaving your employment before the end of the agreement you should not take a car through the scheme. NB: It is not your leaving date that is used to work out if there will be an early termination charge, it is the date you notify your Employer that you wish to resign from your employment that is used. If you resign and leave your Employer after this 6 month exclusion period, an arrangement is in place to cover the early termination charge. Can I buy the car at the end of the agreement? Yes, it may be possible to purchase the car at the end of the agreed term. We ll only be able to give you a purchase price two months before the end of the agreement.

10 TUPE Staff A Termination Fee applies to TUPE staff. The Affordable Car Scheme is not deployed in every organisation so please check with your employer or CPC Drive for further details. What happens if I retire on the grounds of ill health during the period of the agreement? Ill health retirement will be classified as a resignation and the early termination insurance will become effective. However dismissal resulting from incapability will not be covered by the early termination insurance and the full early termination value will need to be met by you. What happens if I lose my driving licence on medical grounds? You can simply return the vehicle with no penalties. The insurance provided under the car scheme has a maximum payout of 5,000. What happens if I am disqualified from driving whilst in the car scheme? You may continue to participate in the car scheme but you must not drive the car yourself. Alternatively you can opt to terminate the agreement but you would then be liable for any early termination shortfall. The Early Termination insurance does not cover this situation. Who will be covered by the annual licence check? An annual licence check of the nominated driver (either you or your relative) will be made by CPC Drive and the cost for this is incorporated in the monthly rental. Who is responsible for checking the licences of any named drivers on the policy? You will be responsible for making sure that any named drivers on the policy have a valid licence. What happens if I die during the agreement term? The scheme covers such circumstances and the salary sacrifice agreement would cease and the vehicle can be returned without penalty (subject to a maximum amount highlighted in your Scheme Policy). Exclusions to this include suicide, death due to alcohol abuse, and prior knowledge of a terminal illness. Additional exclusions may apply. Who is responsible for arranging servicing of the vehicle? You are responsible for ensuring that the Manufacturer's recommended servicing schedule is adhered to and it is imperative that you do so to ensure that the warranty is not invalidated and avoid incurring any additional charges. For insurance services to remain valid the first and subsequent service of the vehicle must not be exceeded by more than 1,000 miles or 14 days. The cost of maintenance is included in the car scheme. Simply call the CPC Drive Driverline on or log onto their website and they will arrange to have the vehicle collected from your place of work or your home, serviced and returned to you. Will I receive instructions on how to book a service? When your vehicle is delivered, it will come with a CPC Drive driver card holder on your windscreen which will have the CPC Drive Driver line number printed on it. Simply call this

11 number to arrange a service, report a breakdown or speak to a member of our customer services team. What happens if my car needs new tyres? The cost of tyres is included. You simply call the Driverline and they will either direct you to the nearest nominated Tyre Centre or arrange for a nominated mobile unit to visit you to replace your tyres. What do I do if I breakdown? All vehicles include UK and European roadside assistance so whether you breakdown at home, at the office or anywhere in Europe you are covered. What happens if my vehicle is off the road due to a mechanical failure or accident damage? Roadside assistance is included to ensure you are never stranded and a 48 hour relief vehicle is provided under the RAC cover should your vehicle be irreparable at the roadside or unroadworthy following an accident. In the event of your car being off the road due to an accident, motor insurance includes a courtesy car if the insured vehicle is being repaired by an approved repairer of the insurer following an accident, fire or theft (UK only). 'At Fault' accidents must be reported within 48 hours to ensure full cover applies. CPC Drive is also able to assist with a hire vehicle at preferential rates and can be contacted by the Driverline on Should your vehicle be off the road due to mechanical failure CPC Drive will also endeavour to provide a replacement vehicle although this cannot be guaranteed. Who is responsible for the payment of any fines incurred on the vehicle or any vehicle provided whilst the primary vehicle is off the road? Any parking, congestion charges or other fines incurred by you whilst using the vehicle will be your responsibility. Any fines paid by CPC Drive will, together with any administration charges levied by them, be recovered from your net salary by Tameside. If my vehicle is involved in an accident and the insurance company declares the vehicle as beyond economic repair, does the insurance cover any shortfall between the insurance settlement figure and the leasing company's valuation of the vehicle? The car scheme includes insurance shortfall insurance(limited to 5,000), which ensures there should be no shortfall for you to pay in the event of your vehicle being declared a total loss. What level of motor insurance is provided? The insurance provides cover for full business travel for the main driver and their domestic partner plus social, domestic and pleasure for any named, additional drivers on the policy. If the driver lends the car either to someone who is not a permitted user (a permitted user being someone who is named on the policy and who has a valid driving licence), who is responsible if they have an accident? Drivers are prohibited from lending the car to someone who is not a permitted user (as described above). If they do, you will be responsible for any resulting accident, injury or uninsured losses.

12 Is there an excess on the insurance? The Key Facts documents from the insurance provider, set out the detail of cover under each policy together with any excess. You need to ensure that you carefully read these before placing an order. They are available on the summary screen on the website when an insurance quote is requested. Do I have to provide proof of No Claims Bonus for the motor insurance policy? No the motor insurance is a fleet policy. If you already have maximum bonus then you can keep it to use on another car. When you come to the end of your selected term CPC Drive will be happy to confirm your no claims bonus for the period you have been with us. You are free to add that to your existing bonus or keep it separate to use on another car. If you have a insurance policy that will be ending when you take delivery of your new vehicle then we would advise that you request a letter of proof from your insurer so these can be held until you should choose to exit the scheme and then can be added to the number of years of NCB you have acquired on the scheme. What if I have more than two fault claims on the policy in any 12 month period or more than three fault claims in any 24 month period whilst on the scheme? You are allowed to have two fault claims within the first 12 month period and three fault claims within the first 24 month period without it affecting your insurance premium for year three. If you have more fault claims than this, your insurance premium for the preceding years will increase.* In the event of more than two fault claims in the first 12 months or three fault claims in the first 24 months you will be billed directly for any subsequent increase in premium. Please note that in all instances your premium will not be affected until the next renewal date. The policy is issued on a 12 month insurance basis (for more info please call or ss4c@howdengroup.com) What is covered on the insurance policy? The Key Facts document from the insurance provider which is located on the summary page of the website provides full details of the cover of the policy and you should read this carefully before placing an order. The motor insurance includes the provision of a courtesy car if the insured vehicle is being repaired by the insurers approved repairer following an accident, fire or theft. (UK only). Can I get an insurance quotation on the website if the main driver is not a Trust employee? Yes, the website can deal with situations where you are not the main driver. You will be asked to confirm whether you are the main driver, and if you aren t, a separate section for the main driver details will be displayed. How many named drivers can be included on the insurance policy? Any number of named drivers can be included and there is no age restriction, however the website can only process the insurance quote for the main driver (age 21+) and their domestic partner (age 21+) plus up to two named drivers as long as the named drivers are over age 21. If the named drivers are below age 21 or there are more than two named drivers required on the policy then the quote has to be processed manually. You will need to call the Driverline on

13 Can additional drivers be added to the insurance policy during the agreement? Additional drivers can be added but any increase in premium will be payable directly by you. Will the number of drivers on the policy affect the overall cost? Yes, the insurance premium will be affected by the number of drivers on the policy. Can I take my car abroad? Your car insurance includes full cover throughout the European Community including Croatia, Iceland, Liechtenstein, Norway and Switzerland (limited to 3 months for any one trip). If you wish to take your car to Europe many insurance providers will require you to inform them of the dates you are travelling. Failure to do so can reduce your cover to Third Party Fire and Theft. You will also need to contact us to arrange a VE103 as authorisation to take the vehicle abroad at a cost of currently. This is valid for 12 months. Is my mobile phone compatible with the car I m ordering? Increasingly manufacturers are including more and more technology in cars. A lot of this new technology is designed to work in tandem with mobile phones to aid driving comfort whilst at the same time providing the functionality you enjoy with your phone in your car. It s important that you check prior to ordering your car that your phone is compatible with the in car technology. Given the rapid development of phone technology some of the functionality advertised with the car may not work with your current phone. Should you have any questions we would in the first instance direct you to the manufacturers website who often include this information within the owner services section. Please note should the car require any updates to aid compatibility we would not be able to cover these costs within the maintenance agreement. What is Carbon Offsetting? Our carbon offsetting initiative means that the carbon emissions of your chosen car are offset free of charge against one of three verified carbon offsetting initiatives, allowing you to drive a carbon neutral car for the duration of your agreement. Our online driver site automatically calculates the carbon footprint of each car during the quote process, you simply need to select the project you d like to support. The carbon footprint is calculated on the tailpipe emissions based on the CO2 emissions of the car, your annual mileage and the length of your agreement. Once your car is delivered you ll be issued with a certificate confirming your cars carbon neutral status and the tons of carbon dioxide equivalent which have been offset. Who can I speak to for guidance? We have an Employee Engagement Team who offer support and guidance to make sure you fully understand the scheme. They can also help you choose the right car to suit your needs. You can get in touch with them through Live Help Online which is an online instant messaging service found on the driver site. Alternatively, you can also call them on or EETeam@ss4c.com. I have recently changed address what do I need to do? You should contact the Customer Services Team as soon as possible to amend any personal details to ensure our records remain up to date in case during the agreement we need to

14 send anything to you. If you fail to notify us of a change of address you may incur additional administration fees. I want to order a car on the scheme but I have an existing vehicle I want to sell, when should I arrange to sell it? Although we will contact you with approximate lead times for an ordered vehicle, these dates can sometimes be changed (outside of our control) by the manufacturer so if you have no other means of transport you should not sell your existing vehicle until you have taken delivery of your new salary sacrifice car. Who meets the cost of the MOT where this is required? Where an MOT is required, the cost is covered as part of the car scheme. Can I use the car for towing? It is possible for you to use the car for towing but you will need to get CPC Drive s prior permission to fit a tow bar. Permission will not be unreasonably withheld. Can I fit personalised number plates? No, personalised number plates are not allowed on the car scheme. What happens if I am disqualified from driving whilst in the car scheme? You may continue to participate in the car scheme but you must not drive the car yourself. Alternatively you can opt to terminate the agreement but you would then be liable for any early termination shortfall. The Early Termination insurance does not cover this situation. I have been given a courtesy car whilst my car is being serviced/repaired. What do I need to do about insurance? The motor insurance under the car scheme does not cover a courtesy car. You will need to ask the garage to insure the car or they may offer a cost or damage waiver. I have received points on my licence for speeding. Do I need to tell anyone? Yes, you must advise the Driverline on and your insurer. What mileage rate will I receive if I do any business miles in the salary sacrifice car? The Trust will pay you fuel only business mileage rates in line with HMRC s Company car advisory rates which prevail at the time that your expenses are paid to you. Who do I contact if I have any further queries about the car scheme? You should contact CPC Drive on either or Tameside@ss4c.com