The Newcastle upon Tyne Hospitals NHS Foundation Trust. Employment Policies and Procedures. Contract Business Car Lease Scheme Policy

Transcription

1 The Newcastle upon Tyne Hospitals NHS Foundation Trust Employment Policies and Procedures Contract Business Car Lease Scheme Policy Version No.: 2.3 Effective Date: 18 November 2015 Expiry Date: 31 August 2016 Date Ratified: 7 October 2015 Ratified by: Employment Policies & Procedures Consultative Group 1 Introduction This policy sets out the Trust s contract car lease arrangements for cars issued for business purposes. Authorisation for a contract lease car will only be given where eligibility is confirmed (see section 6.1) and where it is deemed to be the most cost effective option for the Trust. The employee will bear the full cost of the private use of the vehicle. 2 Scope 2.1 This procedure applies to all employees and honorary consultant contract holders who have a significant clinical commitment with the Trust, particularly: a) those who the Trust requires to be mobile, and b) those the Trust considers it to be in the interests of the service to offer the car lease facility and/or it is economic for the Trust to do so 2.2 An individual on a contract funded from another organisation who is required to be mobile and who fulfils the relevant criteria contained in this document, may be granted a contract lease car provided all additional costs and responsibilities are met by the funding organisation. This condition must be confirmed in advance. 2.3 No individual should be excluded from applying for, or from being granted, a contract business car on the grounds of their age, disability, race, nationality, ethnic origin, sex, sexual orientation, religion and belief, gender reassignment, marriage and civil partnership or pregnancy and maternity. 2.4 This policy is entirely separate and differs from the Trust s Salary Sacrifice Car Scheme. For details about that scheme, please contact the Improving Working Lives team or visit: Page 1 of 25

2 3 Aims To clarify for managers and staff the eligibility for a contract lease car, the process of application and roles and responsibilities. 4 Duties roles and responsibilities 4.1 The Executive Team is accountable to the Trust Board for ensuring Trust-wide compliance with policy. 4.2 Directorate Managers and Heads of Service are responsible to the Executive Team for ensuring policy implementation. 4.3 Managers are responsible for ensuring policy implementation and compliance in their area(s). 4.4 Staff are responsible for complying with policy. 5 Definitions A contract car lease is an arrangement for cars issued for business purposes. 6 Qualifying criteria 6.1 Mileage An employee is eligible for consideration of a contract lease car if he/she meets all of the following: holds a *substantive contract of employment with the Trust is required to have a vehicle available for his/her exclusive use on official Trust business is likely to travel more than 3,500 business miles a year holds a full and valid UK driving licence (* Where service needs necessitate, an employee on a minimum of a 12 month fixed term contract may be considered). In exceptional circumstances where it is considered to be in the interests of the service for an employee to have a contract lease car, an application will be considered provided the following criteria is met: Non-Medical and Dental employees a) is likely to be required to travel an average of at least 1,250 miles per year and Page 2 of 25

3 a necessity to use the vehicle an average of three days per week, or a need to spend an average of at least 50% of their time on such travel including the duties performed during the visits, or b) is likely to be required to travel an average of at least 1,000 miles per year and spend an average of at least four days per week on such travel including the duties performed during the visits Medical and Dental employees/honorary Consultant Contract Holders c) a likely requirement to travel an average of at least 1,250 miles per year, and meet all of the following: have ultimate clinical responsibility, or on-call responsibility normally controlled by a rota system for the diagnosis and treatment of patients in hospital with emergency conditions which require the consultant to be immediately available for recall expect to be recalled to hospital in an emergency at an average rate (taken over the year but excluding periods of leave) of twice or more during a working week whose duties require them to pay frequent visits to places away from their principal place of work, or who are liable to be called out in an emergency in connection with statutory duties relating to the control of communicable disease and food poisoning, or the compulsory removal to suitable premises of persons in need of care and attention 6.2 Nature of travel undertaken The following will be excluded when assessing annual business mileage: a) inter-hospital travel within the Trust or travel which is supported by any other staff transfer facility b) journeys which could be undertaken using public transport (for instance, meetings, conferences, etc, held outside Newcastle) c) home to base mileage (including normal home to work, planned overtime, excess travel and on-call/stand-by). (NB there is a significant personal tax liability incurred when individuals claim home to base mileage). Please refer to section of the NHS Terms and Conditions of Service Handbook and the relevant terms and conditions of service for Medical and Dental staff for further information regarding eligible mileage Page 3 of 25

4 6.3 Exceptional circumstances In exceptional circumstances (to be determined by the Chief Executive/Director of HR on an individual basis) and in particular as an aid to recruitment, an employee transferring to the Trust from another NHS employer may be permitted to retain an existing contract lease car granted to him/her by the previous employer for the remaining part of the lease period. This may be subject to potential unavoidable changes in cost for insurance or tax reasons. Any changes are likely to be minimal and will be fully explained in writing. The individual is responsible for meeting these costs. Upon completion of the lease period of any car accepted by the Trust for transfer the employee is expected to reapply for a lease car, if required in accordance with the Trust s Policies and Procedures and available car lease schemes. 6.4 Conditions of contract lease The contract lease car and associated responsibilities For detailed guidance on the conditions of the scheme see Appendix 1. The Trust currently makes an annual contribution of 1,597 towards the cost of this car and the employee will pay any additional costs. (Depending on the terms of their contract of employment, Consultants, Associate Specialists and Specialty Doctors may be offered a base car of at least 1500cc, but should not exceed 1800cc unless a smaller vehicle is agreed). An employee will normally be provided with a new car for both private and business use. All vehicles will be leased on the most economic basis which is normally for three years and is subject to financial penalty, which will include early termination fee, charge for any excess private mileage and for any damage, if terminated sooner. Such costs will be deducted in full from the next available salary or will be invoiced to the individual if charges are made after their final salary has been paid or whether the amount of their final salary would not cover such charges. Charges under the agreement are subject to monthly deduction direct from salary and cover the following: a) the lease of the car b) all servicing, repairs and maintenance required due to normal wear and tear. Any repairs required due to abuse or vandalism will be subject to payment by the employee or through an insurance claim c) RAC/AA or alternative cover d) annual road fund licence e) fully comprehensive vehicle insurance Page 4 of 25

5 f) Resignation insurance to cover vehicle termination up to 4,000 The vehicle remains the property of the lease company The monthly charge will be based on: a) type of vehicle b) estimated annual mileage The monthly charge payable will be based on the lease cost at the time of order and may therefore differ from the quotation price. Any variation will be notified to the applicant who will have the option to cancel at that point. Once a car has been supplied, the employee s contributions based on the agreed estimated mileages will be fixed for the period of the contract. Changes in VAT, insurance, road fund licence, administration fee and other legislative procedures and changes are the only factor that can change the contribution paid, except for variations in previously agreed mileages. The employee may only choose a car with a CO2 emission output of 120g or less and this should not be a convertible. An employee is responsible for all of the following: keeping the Transport and Facilities Department informed of any changes to job role or personal circumstances which may affect the lease keeping the vehicle clean and tidy maintaining the vehicle at all times in a good and proper roadworthy condition, ensuring that routine checks are completed on tyre pressures, tyre tread, oil and coolant levels, break fluid levels, water and anti-freeze levels. Where applicable, these checks must be in accordance with the manufacturer s handbook ensuring that periodic servicing is carried out in accordance with the manufacturer s handbook any damage caused whilst the car is mobile (i.e. whilst in the vehicle) such damage should be reported to the insurance provider, lease car provider and line manager within three working days and insurance excess paid as required. any damage caused whilst the car is immobile (i.e. whilst the vehicle is unattended) such damage should be reported to the insurance provider and line manager within three working days and insurance excess paid as required. all incidents which occur (either mobile or immobile) - must be reported to the line manager in writing and a DATIX form must be completed within three working days Page 5 of 25

6 ensuring the vehicle is roadworthy, including regular checks on lights, indicators, etc. through vehicle inspection submitting annual odometer readings to the lease car provider promptly upon request to prevent excess mileage over leasing term undertaking SMART Driver training if required to do so by the Trust (employees may request to undertake this training any requests should made to, and will be considered by, the Trust Transport and Travel Advisor) Wilful neglect of a contract lease car will be subject to action under the Disciplinary Procedure. (NB It is the employee s responsibility to inform their line manager and lease scheme provider immediately of any offences (including speeding), fines, impending prosecutions, and potential insurance claims, including any accidents which, if occur during the course of their duties, the employee must record via DATIX. The manager must contact their HR Officer and the Transport and Travel Advisor and decide what action (if any) is necessary). The employee may take the lease car abroad provided permission is given in advance by the Trust and the lease scheme provider. Any charge(s) (if applicable) will be met by the employee. The employee shall permit representatives of the Trust or the lease scheme provider to inspect the vehicle at any reasonable time Claims a) Claims for mileage on official Trust business will be reimbursed at a rate determined by the Trust. The rate will be the advisory fuel rate for a company car as set by Her Majesty s Revenue and Customs (HMRC): the rate will be either the rate for a petrol engine size 1400cc or less, or a diesel engine size 1600cc or less, whichever is the lower amount. (HMRC rates at: b) Business mileage will be monitored on a monthly basis. Any increase on estimated private mileage which will be calculated by the leasing company by comparing business mileage reports with odometer readers will be notified to the employee each year in order that the following can be arranged: i. At the end of year 1 if the employee s private mileage is in excess of that which they estimated they will have the Page 6 of 25

7 opportunity to: - decrease their private mileage to eliminate any excess or - increase their monthly payment ii. At the end of year 2 if the employee s private mileage is still in excess of that which they estimated then an additional monthly charge will be deducted from their salary which will be held by the Trust to pay for any excess mileage costs at the end of the lease. Any monies left after excess mileage costs are deducted will be returned to the employee. c) All claims must be made in accordance with the Expenses and Travel Policy and should be submitted for payment in the month immediately following the month the claim pertains to. d) Failure to claim for business mileage, may impact on future applications under the terms of this Policy Income tax liability Employees are personally responsible for notifying HMRC of their contract lease car. The Trust is also responsible for informing HMRC. Employees should be aware that there is a significant personal tax liability incurred if they claim home to base mileage Insurance The insurance policy will provide comprehensive insurance for the employee on business and private use, comprehensive cover for all other named drivers for private use only. An employee must report all accidents to the lease scheme provider and the Trust within three working days if an accident occurs during the course of the employee s duties it must be reported via DATIX. The employee must also inform their manager. The insurance policy only covers the lease car and any courtesy cars provided by servicing or repair companies. It does not cover staff in the scheme to drive any other vehicle. Resignation insurance is included in the cost of the lease and is valid only after six months of taking delivery of the vehicle. Any changes to job role or contract will set resignation cover to default and a further period of six Page 7 of 25

8 months from appointment in the new job will need to be served before cover is available again. Resignation cover provides up to 4,000 against early termination fees Excess Only drivers who hold a full UK driving licence can use a contract lease car those who hold a provisional driving licence are not permitted to use the car The employee registered with the contract lease car will be liable for the payment of any excess in any circumstance. Excess payments will be refunded by the Trust/insurance provider in the event that accidents are determined as non-fault by the insurance companies Further details on insurance excess can be obtained from the car lease scheme provider Insurers reserve the right to refuse cover on an individual basis In the event that a vehicle is written-off in an accident or stolen and not recovered, the employee is responsible for maintaining payments on the vehicle until the insurance company settle the claim Penalty payments 6.5 Relief vehicles Parking, speeding fines and any similar charges (including any administration fees charged by the lease scheme provider associated with these) are not reimbursable. Consideration will be given as to whether an employee in receipt of a parking fine or speeding penalty constitutes a conduct issue. If so, the matter will be dealt with in accordance with the Disciplinary Procedure. A relief vehicle is not included in the scheme. A relief vehicle can be requested after 24 hours have elapsed. This must be discussed and agreed with the directorate manager/head of department/clinical director and then submitted to the Transport & Travel Advisor for approval prior to any arrangements being made. Any additional cost will be met by the Trust. A relief vehicle will not normally be provided if there are delays in submitting applications and required contracts in a timely manner. In such situations, if it is agreed to organise a relief vehicle to cost will be met by the employee. Page 8 of 25

9 6.6 Application process An employee who considers they are eligible for a contract lease car must submit an application to the Transport and Facilities Department on form CH1 (see appendix 2). The form must be countersigned by the Directorate Manager (or equivalent Head of Service)/Clinical Director. The form will then be passed for approval to the Trust s Transport & Travel Advisor by the lease car provider. The Transport & Travel Advisor will liaise (as necessary) with the relevant manager concerning the application Approved applications will be notified to the following by the Transport & Travel Advisor: 6.7 Driver s licence a) the lease scheme provider (by countersigning form CH1) b) the individual c) the relevant manager d) Payroll Services Department e) Finance Department f) Human Resource Department It is a condition of employment that the employee has valid driving licence for the UK at all times. A mandate must be completed by the employee giving authorisation for a check to be carried out with DVLA. The mandate will be supplied with the contracts to be signed when a car has been chosen. The car will not be delivered until all DVLA licence checks are complete. (NB: Drivers without a full UK driving licence are not eligible). These checks will be carried out as and when necessary. A mandatory annual DVLA licence check will be carried out, without charge for the employee. All other drivers registered to the policy will require annual DVLA checks with payment required from the employee at the current rate. This will be administered by the lease scheme provider. If the individual is subject to any changes whatsoever to their driving license e.g. issued with points or is disqualified from driving they must inform their line manager immediately who will liaise with HR and the Transport & Travel Advisor and decide what action is necessary. 6.8 Refusal of application/offer If an application is refused the employee shall be paid mileage allowance for business mileage in accordance with the provisions of the NHS Terms and Conditions of Service Handbook or relevant sections of the Medical Page 9 of 25

10 and Dental staff terms and conditions of service If an employee refuses the offer of a contract lease car reimbursement of business mileage will be at the Reserve rate in accordance with the rate in the NHS Terms and Conditions of Service Handbook. In the case of Medical and Dental staffs in such situations they will be entitled to reimbursement at the public transport rate In deciding the outcome of an application, particular consideration will be given to: a) the employee s duties and responsibilities b) the requirement for the employee to have use of a car to carry out their duties effectively c) the financial cost to the Trust 6.9 Withdrawal of contract lease car Should the Trust decide for whatever reason to discontinue an employee s contract lease car arrangement, he/she shall be paid mileage allowance for business mileage in accordance with the provisions of the NHS Terms and Conditions of Service Handbook or relevant terms and conditions of service for medical and dental staff subject to meeting any applicable eligibility criteria see section 6.1 above. The employee would be subject to a period of written notice of not less than one month informing them of the intention to withdraw the vehicle. This notice period may be reduced in the case of summary dismissal. In such circumstances the individual would be liable for all costs following termination. The employee s right to a car within the scheme will be terminated: a) On termination of their employment by the Trust b) On the employee s retirement c) Voluntary termination of employment with the Trust d) On commencement of a career break e) On the employee s death f) If any accident or damage is caused through dangerous driving, driving under the influence or use of a mobile phone without a hands-free kit. Termination fees will be met by the Trust in all instances except: a) Voluntary termination of employment with the Trust b) Voluntary termination of job role c) Career break d) Dismissal from the Trust (other than on the grounds of redundancy). The Trust has the right and discretion to terminate an employee s entitlement to a Page 10 of 25

11 car in the following circumstances: a) Breach of the conditions of the scheme b) Prolonged absence c) If contributions cannot be recovered from pay d) Change of post (except by special arrangement and agreement by a member of the Executive Team) e) In exceptional circumstances not provided for in a) to d) f) If mileage claims for business use outside of the qualifying criteria is not met and/or maintained which could be as a result of changes to the service 6.10 Appeal An employee who is dissatisfied with the application of this policy may raise the matter in accordance with the Trust s Grievance Procedure Renewal of Contract Car Lease Arrangements The lease scheme provider will give an employee six months notice of the expiry of their lease contract. Notification will include the date on which the lease agreement is due to expire and the annual mileage claimed by the employee in the preceding two years. Subject to meeting the eligibility criteria in this policy, the employee can apply for another contract lease car. Please refer to point 6.6 for details of the application process 6.12 Business use only Where it is deemed necessary for the Trust to provide a contract lease car for business use only, such cars will be classed as pool cars. Pool cars should normally be collected from and returned to base, and must not be used for any private mileage. They are for use by authorised employees only (see section regarding responsibilities of employees when using a contract lease/pool car). Parking permits for pool cars are required and payment for parking permits must be met by the Directorate. Staff using pool cars will be asked to undertake SMART Training and will be subject to the requirements of paragraph Breach of conditions of use Any breach of conditions of use of the contract lease car may result in action being taken under the Trust s Disciplinary Procedure. 7 Training Training will be provided by the HR Department to managers following implementation of the procedure. Page 11 of 25

12 8 Equality and Diversity The Trust is committed to ensuring that it does not unlawfully discriminate against staff on any grounds. This policy has been properly assessed. 9 Monitoring Compliance with the Policy Standard / Process / Issue a. Managers will monitor, as a minimum on an annual basis that an employee meets the necessary criteria contained in this policy Monitoring and Audit Method By Committee Frequency Reporting Director of Heads of Annually of Human Human information Resources Resources from audits Meeting 10 Consultation and review of this policy This policy has been reviewed in consultation with the Employment Policies and Procedures Consultative Group 11 Implementation of the policy (including raising awareness) A summary of the key changes will be notified to managers following implementation. Further advice and guidance will be available from the Human Resources Department. 12 References 1) NHS terms and conditions of service handbook Available at: b.pdf 13 Additional documents Disciplinary Policy and Procedure Grievance Procedure Author: Employment Policies and Procedures Consultative Group Page 12 of 25

13 1. Introduction The Newcastle upon Tyne Hospitals NHS Foundation Trust In this guidance you will find: Contract Business Car Lease Scheme Policy Supporting Guidance Information a) questions answered that you may have about the contract car lease scheme b) application form (CH1) 2. Questions answered that you may have about the scheme Appendix 1 Q.1 What is meant by contract lease? Contract business car lease is a scheme whereby eligible individuals are provided with, usually a new car by the Trust for both private and business use, in return for a monthly payment from the individual. Q.2 Who owns the vehicle and what restrictions apply to private use? The car is the property of the lease company from whom it has been obtained. There are no restrictions on private use except that certain pursuits e.g. car rallies or racing, are not allowed. An increase in private mileage due to changes in circumstances should be notified to CPC Drive in writing at the earliest opportunity to reduce the risk of an excess mileage charge at the end of the lease. The Trust will deduct any charges in full from salary at the end of term where excess mileage is charged. Q.3 What extras and accessories can I have fitted to the car? A variety of extras e.g. sunroof, alarm, mud flaps, may be fitted provided the cost is met in full by the individual through increased monthly payments. Modifications to the car e.g. towing equipment will only be allowed with the agreement of the contract lease company. The employee is responsible for investigating optional extras available and requesting these at the time of placing the order. The cost of any extras/modifications will be met in full by the employee. The later removal of the optional extras is not permitted. If satellite navigation does not come as standard with the car, the Trust will not reimburse the cost of purchase of such equipment or it s installation all costs will be met in full by the employee. Q.4 What responsibilities will I have if I join the scheme? You will be responsible for keeping the car clean and for the usual routine checks on: tyre pressures and tread, oil levels, water and anti freeze and you are under Page 13 of 25

14 duty to report all damage or defects immediately. The garage or lease company will report where a vehicle has not been maintained in a reasonable condition and you will be charged for any necessary extra costs. You should also carry out regular checks of the lights, indicators to ensure they work and the vehicle body for any damage. You are responsible for ensuring that any change of address, change of job role (which may also affect your right to continued use of the car) and changes to assignment number or contracted hours is notified in writing to contractcarleasescheme@nuth.nhs.uk, Human Resources and CPC Drive at the earliest opportunity. The DVLA should always be informed of changes to address. The Trust should also be notified of any health conditions, temporary or permanent which will limit the ability to drive. Where a health condition is longterm, the DVLA should be informed and there should be engagement with Occupational Health Service and Human Resources. Q.5 Where can servicing and maintenance be carried out? When a service is due you will need to contact the leasing scheme provider who will advise you accordingly. If the lease car is dropped off at a garage for service or MOT, a courtesy car will be provided. Alternatively, the lease car can be collected and returned to a designated place of work and a courtesy car will not be provided. Q.6 What happens if the contract lease vehicle breaks down? Included in the monthly costs is breakdown recovery (RAC, AA or equivalent). If your car is off the road for more than 24 hours then a relief vehicle may be sought from the car dealer. You must liaise with your manager to determine temporary arrangements available whilst the contract lease car is unavailable. All arrangements are subject to prior management approval (see section 6.5) Q.7 What happens if the contract lease vehicle is involved in an accident? If it involves a third party you must exchange name, address and insurance details, but you MUST NOT accept responsibility. Provided it is safe to do so, photographs should be taken of the accident, any damage to vehicles involved, the location of the accident, road conditions and vehicle registrations taken of any witnesses if available. If there is any injury sustained, the emergency services including Police should be called. The accident must be reported within three working days to the insurer and lease scheme provider who will advise on your repair procedures and your line manager. A DATIX must be completed if the accident occurs whilst on duty. Q.8 Can friends or other members of my family drive the vehicle? Page 14 of 25

15 The insurance policy provides full comprehensive cover for you and up to four named drivers. The names of a maximum of four extra drivers you wish to drive your car must be notified to the Trust all drivers must hold a full UK driving license (no provisional licence holders allowed). Annual DVLA checks will need to be carried out on all other drivers at your cost at time of check and this will be recharged through salary. Insurance excess payments will not be met by the Trust for any driver. Insurance cover is renewed annually and is subject to change without consultation with drivers. Any additional drivers should also be made aware that any speeding offences, parking fines, parking charge notices will be passed directly to you as the employee and main driver of the vehicle. Q9. What should I do if I receive points on my driving licence? In all instances where the employee has points added to their driving licence following any driving offence, details of the points and associated enforcement code should be provided in writing to CPC Drive. Q.10 How much is the fixed payment? Individual costs depend on personal circumstances i.e. choice of vehicle and amount of mileage travelled. The Trust currently contributes 1,597 per annum ( per month) towards the cost of a car and the employee shall pay any additional costs above this figure. The payment will only vary if there are changes to the annual insurance premium, VAT or changes made to Benefit-in-Kind rates which are linked to CO2 emissions. Drivers will be notified in writing of any changes which can take effect immediately. Q.11 What does the payment cover? The monthly charge covers: - All servicing, repairs and maintenance (except in cases of neglect/abuse)rac/aa or alternative road cover - Road fund licence (Tax Disc) - Comprehensive vehicle insurance - Resignation insurance - Q.12 For how long is the monthly payment fixed and are there any factors that can affect the monthly payment? The lease cost is fixed for the full period of the lease which is normally three years (unless initially leased for a shorter period). The following are examples of variables which may affect the monthly payment: VAT, road fund licence (tax disc) administration fee, insurance premiums and any other changes in government legislation. These are beyond our control. You will be notified of any changes in advance of the new rates. Changes to estimated mileage will also affect the monthly payment. Q.13 How is private mileage assessed? You are asked to estimate the amount of private mileage you are likely to travel during a 12-month period. This estimate is used when calculating the charge for Page 15 of 25

16 the car. Your mileage will be evaluated annually. Your odometer reading less business miles claimed will leave mileage balance deemed as private mileage. You must consider your commuting mileage and any other likely private usage of the vehicle which you may undertake. Q.14 What if I under or over-estimate my private mileage? Throughout the first two years of the contract you have the opportunity to adjust your mileage and have your repayments recalculated (see section 6.4.2b). At the end of each year you will be advised of your actual mileage against the contracted mileage. If your mileage has exceeded your estimated mileage at the end of year 1 you will be given the opportunity to either decrease your private mileage to eliminate any excess or increase your monthly payment. If, at the end of year 2, your private mileage has still exceeded the amount estimated an additional monthly charge will be taken from your salary. Also at the end of the three-year lease period your private mileage will be checked and you will receive either reimbursement or salary deducted for used or excess miles. If no salary is available an invoice will be issued. Q.15 What if my business mileage falls below the minimum eligibility requirement for a contract lease car during the lease period? The Trust may take the decision to withdraw provision of the contract lease car and termination costs will apply. If there are any changes to business mileage requirements which would result in you failing to meet the qualifying criteria, the Trust should be notified immediately at contractcarleasescheme@nuth.nhs.uk in order for a decision to be made on your continued use of the car. Q.16 Does the provision of a car attract an income tax liability? The provision by an employer of a car, which can be used for both business and private use is assessed as a benefit in kind by the HMRC. However, contributions made by an individual for private use of the vehicle are deductible from the allowance. Q.17 What are the advantages of joining the scheme? The cost of owning and running a car are often underestimated. Not only does the motorist have to meet obvious costs such as road tax, insurance and have to contend with bills for servicing and maintenance, but there is also the hidden cost of depreciation to be considered. An additional benefit of joining the scheme is that your motoring costs can be calculated at the outset and should remain fixed for a three-year period (subject to changes in road fund licence, VAT, insurance and changes to estimated mileage). Q.18 What would happen to existing car allowances if I joined the scheme? Your current level of allowance would cease and would be replaced by an amount for business use for fuel costs. This is determined by HMRC guideline rates for company cars. Page 16 of 25

17 Q.19 What happens at the end of the three-year lease period? If the scheme is still in operation and you remain eligible you will be contacted approximately six months before the end of the period. If you want to continue with the scheme you must compete a new application form which is available within the Policy and order a new car within a timely manner and prior to expiry of existing lease, if not please see Q23 below. The monthly cost will be recalculated according to prevailing costs and any adjustments you require e.g. private miles. In the event that you take no action to renew your vehicle in a timely manner, the leasing company reserves the right to request immediate return of the car at the end of the contract period and you will be responsible for arranging alternative access to a vehicle at your own cost. Q.20 What happens if I am absent long term? (e.g. sickness absence, maternity leave) You should notify the Transport and Facilities Department of any long-term sickness and maternity leave advising of start date and expected period of absence from work. You can choose to retain the contract lease car as long as you make the normal payments every month if there is insufficient salary to cover the payment you must arrange with the Transport and Facilities Department and Payroll Services Department to pay by other means. If you do not wish to retain the car you can return the car and stop payments, however the Trust reserves the right to reallocate the car and you will be required to re-order a new car or arrange alternative access to a vehicle at your own cost upon return. At the point of returning the car and assessment will be carried out on the vehicle and you will be liable for any excess mileage or damage to the car at that point. Q.21 What happens if I resign from the Trust s employment? This depends on the circumstances and resignation insurance is in place: - There are no penalties if you retire on the grounds of ill health, redundancy or death in service. - There are no penalties if the Trust changes your job role and the amount of business miles travelled is significantly reduced or the change no longer requires you to drive on official business - If you move to another NHS body that organisation may be willing to take up the lease. If so then then you may be required to meet any novation costs and there may be changes to your monthly rate as insurance costs may vary at other NHS Trusts. Should the other NHS Trust refuse transfer you are to return the vehicle.. - In any of the above circumstances you may purchase the vehicle for private use from the leasing company. This would be a personal arrangement and therefore will be negotiated independently between you and the leasing company i.e. the Trust will have no involvement in any such discussions. If you purchase the vehicle prior to the contract end date termination charges will be applied - If none of the above apply and the lease needs to be terminated the Trust will Page 17 of 25

18 pass on termination charges to you or the termination charges will be met through resignation insurance subject to a copy of your signed resignation letter and signed confirmation of resignation from the Trust being received by the Transport and Facilities Department. Q22 What happens if I am dismissed from the Trust on the grounds of Conduct or Capability? In the event that you are dismissed from the Trust you are eligible for all early termination fees, excess mileage and any damage to the car. You are to return the vehicle to an agreed location at the Trust within 24 hours. The employee will be liable for all costs from the date of dismissal until they return the car to the Trust. The end date of your car will be the date vehicle is returned to the Trust and any termination fees, excess mileage or damage will be deducted from your final salary. Q23 What happens if I change job / or take flexible working options but remain in the employment of the Trust? This depends on the circumstances: - In all cases you should notify the Transport and Facilities Department in writing of a change of job role including changes to working hours / days - If your new / amended job role within the Trust requires you to have access to a vehicle, you are required to provide written confirmation of expected anticipated business mileage and adjustments may be made to your monthly payment to reflect any increase or decrease in mileage following reassessment by the Transport and Facilities Department of eligibility for the scheme and anticipated mileage - If your new job role within the Trust does not require you to have access to a vehicle or means you no longer meet the qualifying criteria you can: 1. Return the vehicle and provide a copy of your signed resignation letter and signed acceptance of resignation from the Trust for your previous job role. The resignation insurance will be applied for early termination and you will be eligible for any excess mileage or damage on return to the vehicle. 2. You may purchase the vehicle for private use from the leasing company. This would be a personal arrangement and therefore will be negotiated independently between you and the leasing company i.e. the Trust will have no involvement in any such discussions. If you purchase the vehicle prior to the contract end date termination charges will be applied 3. You may continue to lease the vehicle but will be eligible to meet the Trust subsidy costs in addition to the costs you have previously paidfor the duration of the lease. If you select this option and decide at a later date to terminate the lease you will be eligible for all termination fees, excess mileage and any damage on return of the vehicle. Q24 What happens if I take flexible retirement? You are to notify the Transport and Facilities Department immediately of any agreed flexible retirement and provide last working day and details of new start Page 18 of 25

19 date. You may retain the car if required and if returning to the same role with the same business mileage requirements but you will be eligible to pay the Trust s subsidy element for any period between date of retirement and recommencement of duties, i.e. the number of days (pro-rata of 1,597 per annum). This adjustment to deductions will be made from your next available salary and you are to advise the Transport and Facilities Department of your new assignment number on recommencement of duties. Any arears accrued for failure to provide the notification of flexible retirement and subsequent change of assignment number will be deducted from your next available salary in full. In the event that you are returning to a different role of will not meet the eligibility criteria please refer to Q23 Q.25 Is there a garaging allowance payable? No Q.26 What if I elect not to join the scheme? If you meet the eligibility criteria for a contract lease car which has been deemed to be this most cost effective option for the Trust, but decline the Trust s offer of a contract lease car (or a business use only car) and continue to use your own vehicle for business use you will be reimbursed at the reserve rate mileage allowance detailed in the NHS Terms and Conditions of Service Handbook or in the case of medical and dental staff at the special rate. The Trust also operates a salary sacrifice scheme for lease cars which you are eligible to apply for. Q.27 What happens if I change my mind after accepting a contract lease car? Termination penalties will apply depending on the circumstances. Reserve rate of mileage will be payable for all business miles travelled in your own vehicle or in the case of medical and dental staff at the public transport rate. If an individual places their order for a contract lease car but cancels the order prior to delivery they will incur a charge of 500. Q.28 Is foreign travel allowed? Yes. For details please contact the car lease scheme provider the employee must seek prior authorisation from the Trust via the Transport & Travel Advisor before taking the vehicle abroad and any additional insurance costs must be met by the driver Q.29 What if I want a vehicle for business use only? Special arrangements have been made for individuals who want a vehicle for business use only (subject to the qualifying criteria). You should contact the Trust s Transport & Travel Advisor for further information. Q.30 What happens if I have any difficulties about the terms of the scheme do I have the right to appeal? Page 19 of 25

20 Yes, but only on certain aspects. The Trust s Transport & Travel Advisor can advise in these circumstances. Q.31 If I am interested in joining the scheme how do I proceed and what is the process? If you think you are eligible to join the scheme and you wish to apply, you should submit an application to Transport and Facilities Department by to contractcarleasescheme@nuth.nhs.uk on form CH1 (see Appendix 2). The form must also be completed by the budget holder to verify mileage and eligibility in line with the Policy and be countersigned by the Directorate Manager (or equivalent Head of Service)/Clinical Director. The form will then be passed for approval to the Trust s Transport & Travel Advisor by the lease scheme provider. Trust s Transport & Travel Advisor will liaise (as necessary) with the relevant manager concerning the application. You will then be provided log-in details from the lease car provider to access quotes and order your vehicle. 3. General Terms & Conditions For staff on Agenda for Change contracts, please refer to Section 17 of the NHS Terms and Conditions of Service Handbook for further details. For Medical and Dental staff, please refer to the terms and conditions of service for Medical and Dental staff 4. Insurance Excess Insurance excess is payable by the employee in all instances. In the event that an accident or damage is non-fault, the excess will be returned following completion of the claim investigation by the insurers. 5. Income Tax for Company Cars Please contact the Trust s payroll services department for advice regarding income tax payable for company cars. It is the employee s responsibility to complete all relevant documentation relating to this matter e.g. income tax selfassessment return 6. Road Fund Licence (Vehicle Excise Duty) The Road Fund Licence costs are included within the lease payments. Page 20 of 25

21 Appendix 2 The Newcastle upon Tyne Hospitals NHS Foundation Trust Application or reapplication for Contract Car Lease - CH1 form (NOTE: FOR USE BY INDIVIDUALS REQUIRING A VEHICLE FOR OFFICAL BUSINESS USE) Applicant Information Full name of applicant (Mr/Mrs/Miss/Ms/Dr/other): Assignment number: NI Number:.... Home address:... Postcode:. Home telephone number:. Work telephone number:... Mobile telephone number: Address: Date of Birth: Current job title:.. Is the current post permanent or temporary:... Department and Hospital site:.. Date of appointment into present post: Are you currently classified as a regular car user? (Medical and Dental staff only) Yes/No Earliest date vehicle required:... Estimated annual private mileage:... Insurance Please give names and details of the relationship of any drivers other than yourself who you wish to be included in the policy. (Please state if drivers are under 25 years of age and note that no provisional licence holders are eligible to be included.) Name Relationship Date of Birth Under 25 (Y/N) Page 21 of 25

22 Applicant Declaration I declare that the information I have given on this form is correct and complete and I apply for a quotation / reapplication for the lease of a vehicle under the terms of the Trust s Contract Car Lease Scheme Policy, which I have read and understood. I understand that if I knowingly provide false information this may result in disciplinary action and I may be liable for prosecution and civil recovery proceedings. I consent to the disclosure of information from this form to and by the Trust and NHS Protect for the purpose of verification of this application and the investigation, prevention, detection and prosecution of fraud. Signature. Date.. Applicant Next Steps This application should now be forwarded to your Clinical Director/Directorate Manager/Head of Service (Budget Holder) for completion, signature and submission to the Transport and Facilities Department, Freeman Hospital by post or . Certificate of Eligibility THIS SECTION TO BE COMPLETED BY BUDGET HOLDER ONLY Please specify the applicant s business mileage per month for the last 12 months: Year & Month Mileage Year & Month Mileage Estimated future annual business mileage: miles per year Please indicate which additional criteria applies if under recommended mileage (non-medical and dental employees): a necessity to use the vehicle an average of three days per week a need to spend an average of at least 50% of their time on such travel including the duties performed during the visits is required to travel an average of at least 1,000 miles per year and spend an average of at least four days per week on such travel including the duties performed during the visits Page 22 of 25

23 Please indicate which additional criteria applies if under recommended mileage (Medical and Dental employees): have ultimate clinical responsibility, or on-call responsibility normally controlled by a rota system for the diagnosis and treatment of patients in hospital with emergency conditions which require the consultant to be immediately available for recall and expect to be recalled to hospital in an emergency at an average rate (taken over the year but excluding periods of leave) of twice or more during a working week whose duties require them to pay frequent visits to places away from their principal place of work, or who are liable to be called out in an emergency in connection with statutory duties relating to the control of communicable disease and food poisoning or the compulsory removal to suitable premises of persons in need of care and attention Please advise if employee is full time or part-time... Please specify the employee s contract hours.. Please indicate (by ticking relevant box) what days of the week the employee is likely to use the car for business purposes: Mon Tues Wed Thurs Fri Sat Sun Budget Holder Declaration I agree and authorise an annual charge of 1,597 which will be taken from the cost centre provided for the purposes of a contract lease car for the applicant. I confirm that the qualifying criteria and historic mileage stated are accurate. I understand that if I knowingly authorise false information this may result in disciplinary action and I may be liable for prosecution and civil recovery proceedings. I consent for the disclosure of information from this form to and by the Trust and NHS Protect for the purpose of verification of this application and the investigation, prevention, detection and prosecution of fraud. Budget Holder Authorisation Budget Holder s Signature: Date: Budget Holder s Cost Centre Print Name: Designation: DO NOT RETURN THE FORM TO THE APPLICANT Please scan this form and to: Contract Car Lease Scheme Inbox Page 23 of 25

24 OFFICE USE ONLY Application Assessment Date Application Received: ITEM YES NO COMMENTS Mileage Comparison Business miles compliant with policy Private Miles Declared Business Miles Declared Total Mileage Final Trust Approval Transport and Travel Advisor Signature: Date: Date application sent to Leasing Company:.. Page 24 of 25

25 Appendix 3 Name: Assignment Number: Vehicle Registration: Department: Directorate: CONTRACT BUSINESS LEASE CAR SCHEME CHANGE OF CIRCUMSTANCES FORM Change of circumstances (Mark all the apply with X) Change of Address Change of Job Role Flexible Retirement Increased Business Mileage Decreased Business Mileage Increased Private Mileage Decreased Private Mileage Reduced Working Hours Reduced Working Days Long-term Sickness Maternity Leave Leaving the Trust Please also notify HR, Payroll and Staff Benefits or Car Parking if applicable Refer to Q23 of Policy Appendix 1 for details of information required Refer to Q24 of Policy Appendix 1 for details of information required Refer to Q13, Q14 and Q15 of Policy Appendix 1 for details of information required Refer to Q13, Q14 and Q15 of Policy Appendix 1 for details of information required Refer to Q13, Q14 and Q15 of Policy Appendix 1 for details of information required Refer to Q13, Q14 and Q15 of Policy Appendix 1 for details of information required Refer to Q23 of Policy Appendix 1 for details of information required Refer to Q23 of Policy Appendix 1 for details of information required Refer to Q20 of Policy Appendix 1 for details of information required Refer to Q20 of Policy Appendix 1 for details of information required Refer to Q21 of Policy Appendix 1 for details of information required Please provide all information required in line with Policy and guidance above in the box below, sign and then to contractcarleasescheme@nuth.nhs.uk Signed: Date: Page 25 of 25