Company Vehicle, Car Allowance and Fuel Card Policy & Guidelines

Transcription

1 Company Vehicle, Car Allowance and Fuel Card Policy & Guidelines 1.0 Principle 1.1 Amey provide company funded vehicles and fuel cards in order to attract the necessary calibre of staff, allowing it to remain competitive in the recruitment market and to enable individual employees to carry out their duties as cost effectively and efficiently as possible. 2.0 Policy Company Vehicles and Car Allowances 2.1 It is the express policy of the Group for Company vehicles and car allowances to: Ensure that where a vehicle is part of an individual s remuneration package, it is commensurate with the role Provide Business Need vehicles to allow individuals to carry out their duties effectively and efficiently. The criteria for eligibility is based on anticipated or actual average of at least 10,000 business miles per year, or anticipated or average actual of 12 hire days per month Ensure that individuals have a choice of vehicle by also providing the option of : trading up to a vehicle one level higher than their contractual entitlement. trading down to any vehicle lower than their contractual entitlement. an alternative in the form of a car allowance Provide additional flexibility for non Business Need employees who prefer to use alternative means of transport, the option of receiving the car allowance as a cash equivalent travel allowance Ensure that clear requirements and conditions associated with the provision of company funded vehicles is documented and communicated Ensure that appropriate insurance and reporting arrangements are in place in the event of an accident or incident involving a company funded vehicle Ensure that individuals are recompensed for the expenses incurred on driving business mileage in the use of either a Company Vehicle or personally owed vehicle. 3.0 Policy Company Fuel Cards 3.1 It is the express policy of the Group for Company fuel cards: To give eligible employees the opportunity to receive a Company fuel card to purchase fuel (and, for company car users, oil) for both business and private use in the United Kingdom, subject to the condition of use in the attached guidelines Amey plc. reserves the right to withdraw issued fuel cards at any time and for any reason. 4.0 Responsibilities Fleet Solutions Rev: 8.1 Date: March 2013 Ref: PLC-HR-014 Page 1 of 13

2 Provision of all company funded vehicles and fuel cards, including ordering and allocation and return process, and maintenance of records of card usage. Provision of Amey Drivers Handbook (PLC-P&T-305/01) Amey Group Insurance and Risk Department Provision of insurance cover in accordance with the Road Traffic Act. Legal Aid against third parties for personal injuries. OneHR Provision of an Amey Group wide Company Car, Car Allowance and Fuel Card policy and guidelines. Administration and authorisation of applications for company cars and car allowance. Monitoring of vehicle age of employee car in relation to this policy. Operation of PAYE as appropriate to payments including car allowance. Reporting of taxable benefits as required of an employer. Line Management Implementation of this policy and any guidance / procedures developed by Group HR. Individual Employees Compliance with the policy and guidelines, the failure of which may result in the withdrawal of the benefit and disciplinary action. 5.0 General 5.1 The ownership, maintenance and review of this policy are the responsibility of the Group Human Resources Director on behalf of the Amey Executive Committee. 5.2 Company cars, car allowance and fuel cards are issued subject to the conditions of use set out in this document. Failure to comply with these requirements will be treated as a breach of discipline and could result in action being taken under the Group Disciplinary Procedure (PLC-HR-1000). 6.0 Communications 5.1 This policy will be brought to the notice of all Directors and Senior Staff. Any resulting process and procedures must form part of each divisions management system and be communicated to all employees who become eligible for a company-funded vehicle. Kate Litton Kate Litton HR Director Rev: 8.1 Date: March 2013 Ref: PLC-HR-014 Page 2 of 13

3 Revision Status Rev Date Amendment Content Use Owner Mandated By 00 00/00 Draft issued for use PJH Smith A Springett 01 10/01 Title Changed from Company Car Policy PJH Smith K Lawrie 02 10/02 Amendments to the document/policy N Nicolaides M Bradshaw 03 03/07 Consolidation of car policy-related documentation J Monk M Bradshaw 04 09/12/09 Amendments to document/policy P Wall M Bradshaw 05 17/12/09 Revision of Policy to reflect FMP (taxation) arrangements. P Wall M Bradshaw 06 4/2/10 Amendments to document/policy to clarify new eligibility P Wall M Bradshaw requirements /4/10 Correction of typo in 06 revision date M Cadger M Bradshaw /08/10 Clarification of eligibility for transition period & updating change to M Cadger M Bradshaw One HR /11/10 Clarification of transition period provisions, making clear that any M Cadger M Bradshaw replacement of non-compliant vehicles must be to a compliant vehicle /03/11 Introduce flexibility for cash equivalent to car allowance for non M Cadger M Bradshaw essential users and update for CPF Bands /05/12 Guidelines information previously contained with PLC-HR-013 added M Cadger K Litton as appendices and content amended to remove duplication of information /3/13 Changes to business mileage recording, payment and taxation M Cadger K Litton arrangements /3/13 Amendment to date from which car allowance, fuel card holders change business mileage recording portal M Cadger K Litton Rev: 8.1 Date: March 2013 Ref: PLC-HR-014 Page 3 of 13

4 Company Cars Operation of Policy 1.0 Eligibility Categories 1.1 Individual employees (who must hold a valid driving licence) of Amey may be eligible for an allocated vehicle in one of the following categories by satisfying the appropriate criteria set down below: Band vehicle (available to employees in CPF bands E, F & G) Business Need vehicle (available to all employees who meet eligibility criteria) 1.2 Employees are not guaranteed the allocation of a new vehicle and may initially be given a used vehicle, albeit appropriate to their band. 1.3 In the event of promotion, an existing company car driver will not be eligible for an upgraded vehicle until the lease on their existing vehicle expires, or until the vehicle can be re-allocated. However, the employee will receive a trading down allowance until the car is changed for the new entitlement, on completion of the relevant form. 1.4 If eligibility is removed the Company reserves the right to withdraw the vehicle subject to giving up to three months notice to allow the employee to make alternative arrangements. 1.5 Employees in bands A to D, who were eligible for a company car or car allowance as part of their benefits package on 1 November 2010, will retain eligibility until further notice. This does not apply to employees who have been provided with a company car or car allowance solely due to their status as a business need user, as eligibility will cease should they no longer meet the criteria described below. Band Vehicle 1.6 Employees in Bands E, F and G are eligible for a car based on a Maximum Monthly Lease Rental Cost (MMLRC). Allocation of vehicles is based on a free choice up to a MMLRC for each Band (although trading up at the employee s cost is allowable). The MMLRC values can be obtained from Fleet Solutions ( , option 1). Business Need Vehicle 1.7 Business need vehicles are provided specifically to allow individuals to carry out their duties effectively and efficiently and all requests for business need vehicle user status must be approved as per the Authorities Schedule. 1.8 The criteria for deciding if an individual is eligible are: An anticipated or actual average of 12 hire car days per month and / or An anticipated or actual average of at least 10,000 business miles per year. 1.9 These criteria and circumstances may be reviewed periodically to ensure that an individual continues to qualify for a vehicle. Employees must record all business trips and mileage on their expense claims or Business Mileage Records as appropriate, and people managers should monitor business mileage to ensure that essential vehicle status is or remains justified. Company car lists are published on Ameyworld or can be obtained from Fleet Solutions ( ). Rev: 8.1 Date: March 2013 Ref: PLC-HR-014 Page 4 of 13

5 2.0 Trading Up 2.1 Employees have the option of trading up to obtain a vehicle one Band/Grade higher than their contractual entitlement by making a monthly contribution towards private use. The monthly contribution is offset against the P11D car scale charge on which the benefit-inkind is calculated for tax purposes. (Note trading up contributions are not payable if the employee is allocated a temporary vehicle.) 2.2 The employee is committed to pay for the entire trading up contribution due for the 36 month lease period. Therefore if the employee leaves Amey for any reason (including redundancy) before this period, they are liable to pay for the amount outstanding unless the vehicle can be re-allocated. For example, an employee trades up at a gross monthly cost of 50 per month over a three year period. After 18 months they leave the company and therefore the overall shortfall is 900 ( 18 months) which they are liable to pay for in full. 2.3 For the avoidance of doubt, any such contribution forms part of the terms and conditions governing the availability of the car to the employee and it is due and payable on condition of the car being available for the employee s private use; and specifically for that use. 2.4 Full details of how to trade up and the monthly contribution rates can be obtained from Fleet Solutions ( ). 3.0 Trading Down 3.1 Employees have the option of trading down (without limits) to obtain a vehicle at a Band/ Grade lower than they are entitled to. Employees will then be eligible to receive a monthly gross Trading Down Allowance (unless the allocated vehicle is on a temporary basis ). Income tax and National Insurance contributions are payable on the allowance. 3.2 Full details of how to trade down and the monthly contribution rates can be obtained from Fleet Solutions ( ). 4.0 Company Vehicle - Requirements and Conditions Persons Eligible to Drive a Company Funded Vehicle 4.1 Company funded vehicles may only be driven by: The vehicle holder on company business and for social and domestic purposes. With the vehicle holder s permission, Amey personnel on company business (with records of such instances). The spouse/long term partner of the vehicle holder (living at the same address) for social and domestic purposes only, with prior written authorisation from the employees people manager. Non-Amey employees must not, in any way whatsoever, use the Amey vehicle for business purposes. 4.2 Before a spouse/long term partner of a company vehicle holder can drive the vehicle, the people manager approval and a completed IDS form must be sent to OneHR. OneHR will forward to our insurance providers and the employee will be notified when their spouse/long term partner is covered to drive the vehicle. Rev: 8.1 Date: March 2013 Ref: PLC-HR-014 Page 5 of 13

6 4.3 All drivers must be in possession of a valid full driving licence. The vehicle holder must report to their people manager and Fleet Solutions ( ) immediately their driving licence is cancelled or withdrawn and must not drive a company vehicle until it is returned to them. 4.4 Each driver must complete and sign a separate Data Protection Mandate (DPM). IDS provide a Driving Licence Checking service for Amey and are registered as a data controller under the Data Protection Act (Reg No.Z ). All driver information is held securely and under the terms of their agreement with DVLA, no information will be sold to 3 rd parties or marketing organisations or abused in any way. Fines 4.5 The allocated company vehicle holder is responsible for the payment of all road traffic and parking fines, which may be deducted from pay and benefits, subject to prior notification to the vehicle holder. Personal Taxation 4.6 The provision of a company vehicle is a taxable benefit in kind to the employee. Tax rules are subject to alteration by future legislation and Amey plc. will under no circumstance be held responsible for any variations in tax liability to the individual. 4.7 Information on how the CO 2 emissions-based company car tax system works, how to calculate the tax on any company car, and how to calculate the cost effectiveness of a company vehicle, is available from General Requirements 4.8 It is the responsibility of all Amey employees to comply with the Amey Drivers Handbook (PLC-P&T-305/01) at all times. The handbook contains guidance on maintenance of vehicle, insurance provisions and procedures to follow for breakdowns, accidents and injuries involving a company car. Return of Vehicle 4.9 When a vehicle is returned for whatever reason (resignation, retirement etc.) it should be in a clean and tidy condition. In the event that this condition is not met then Fleet Solutions reserve the right to have the vehicle valeted and the cost incurred deducted from the vehicle holder s salary or final payment. Taking Amey Vehicles Abroad 4.10 Company vehicles may be taken overseas to mainland Europe following the express approval from your people manager The Amey Group Motor Fleet insurance policy provides cover for company vehicles within the European Union. The Amey Group Motor Fleet insurance policy provides the necessary cover to meet the laws on compulsory insurance within each of the EU territories. It should be noted that the majority of EU territories require insurance cover to a minimum of Third Party only. On this basis, accidental damage to the vehicle will not be insured (cover operates on this basis for Amey vehicles in the UK). The costs associated to repairing accidental damage will, therefore, be a direct cost to the business. This should be borne in mind before making a decision on whether or not to take the company vehicle overseas. Rev: 8.1 Date: March 2013 Ref: PLC-HR-014 Page 6 of 13

7 4.12 In the case of private use, you will be responsible for ferry/tunnel charges You will also be responsible for the cost of repatriating the vehicle in the event that the vehicle becomes unsuitable for use on the road (e.g. following an accident) 4.13 Please note that it is your responsibility to comply with local legislation within each of the territories that you intend to visit (e.g. headlight adjustment, first aid kits, warning triangles and spare parts). 5.0 Business Mileage Rates 5.1 Employees with a company car or car allowance who do not have a Company fuel card are entitled to claim reimbursement for business mileage at the appropriate fuel only rate via expenses. The rates are published on Ameyworld. Rev: 8.1 Date: March 2013 Ref: PLC-HR-014 Page 7 of 13

8 Car Allowance Operation of Policy Employees entitled to a company car may be given the option of receiving a car allowance instead. New employees entitled to a company vehicle can opt for a car allowance at the time of recruitment. Existing car drivers can transfer to a car allowance once the lease on their existing company vehicle expires. 1.0 Employee Eligibility Categories 1.1 Employees may be eligible for a car allowance in one of the following categories by satisfying the appropriate criteria set down below: Band vehicle (available to employees in CPF bands E, F & G) Business Need (available to all employees who meet eligibility criteria) 1.2 Employees in bands A to D who were eligible for a car allowance as part of their benefits package on 1 November 2010, will retain eligibility until further notice. This does not apply to employees who have been provided with a car allowance solely due to their status as a business need user, as eligibility will cease should they no longer meet the criteria described below. Band Vehicle 1.3 Employees in Bands E, F and G are eligible for a monthly car allowance as specified in their contract of employment. OneHR can also provide details of the monthly car allowance. Business Need 1.4 Business need status is provided specifically to allow individuals to carry out their duties effectively and efficiently and all requests for business need vehicle user status must be approved as per the Authorities Schedule. 1.5 The criteria for deciding if an individual is eligible are: An anticipated or actual average of 12 hire car days per month and / or An anticipated or actual average of at least 10,000 business miles per year. 1.6 These criteria and circumstances may be reviewed periodically to ensure that an individual continues to qualify for a car allowance. Employees must record all business trips and mileage on their expense claims or Business Mileage Records on the Innovation Mileage System as appropriate, and people managers should monitor business mileage to ensure that business need vehicle status is or remains justified. Driving Licence 1.7 All employees applying for a car allowance must be in possession of a valid driving licence and must provide a completed Data Protection Mandate (DPM) to Intelligent Data Systems (UK) Ltd (IDS). The employee must report to their people manager and Fleet Services immediately their driving licence is cancelled or withdrawn and must not drive on company business until it is returned to them. IDS provide a Driving Licence Checking service for Amey and are registered as a data controller under the Data Protection Act (Reg No.Z ). All driver information is held securely and under the terms of their agreement with DVLA, no information will be sold to 3 rd parties or marketing organisations or abused in any way. Rev: 8.1 Date: March 2013 Ref: PLC-HR-014 Page 8 of 13

9 2.0 Vehicle Eligibility 2.1 The appearance, reliability and safety of the vehicle should be appropriate for business use when required, and the people manager shall determine whether this is of an appropriate standard for business use. 2.2 All cars owned or leased by employees for which they receive a car allowance, must be no more than seven years old. 3.0 Requirements and Conditions Payment 3.1 Payment of the allowance will be made weekly, monthly or four weekly as appropriate at the same time as the vehicle holder s payroll is run. Please note these payments are not linked to salary, not considered to be salary and are not included for pensionable benefit or bonus calculations. 3.2 HMRC permit employees with their own cars to claim AMAPs (Approved Mileage Allowance Payments) at the rate of 45ppm for the first 10,000 business miles and 25ppm thereafter. With effect from the tax year 2013/14, Amey plc introduced a procedure for all car allowance drivers with a fuel card called the Mileage Management Programme (MMP) to make it clear that the car allowance is and has always been a payment by the Company made to the employee towards the business motoring expenses of the privately owned car. 3.3 Under CAFMP and with effect for business journeys driven on or after 6 April 2013, the Company will reimburse participating drivers for their recorded business mileage at the AMAPs rate of 45ppm. In return, the part of the car allowance of the driver which is subject to tax/nic will be reduced by the same amount. Legal / Insurance 3.4 It is the employee s responsibility to ensure that their vehicle meets the requirements of the law and is correctly insured. The insurance provided must include cover for the vehicle during business use. The normal insurance cover "social and domestic use" is not acceptable. A copy of the Insurance Certificate must be provided on an annual basis. Maintenance/Repair 3.5 The car allowance is based on a fully serviced leased car cost. It is therefore the employee s responsibility to ensure that their vehicle is maintained in a safe and reliable condition at all times. All costs associated with maintenance and repairs remain totally with the employee. If the car is not available for some reason, it is the employee s responsibility to ensure that they temporarily replace the vehicle at their own cost. A copy of the MOT Certificate (where applicable) must be provided on an annual basis. Taxation 3.6 Subject to any payments made for business mileage being tax and NIC free, the car allowance will be subject to the deduction of Income Tax and National Insurance at source through PAYE, at the rates which are applicable at the time. Availability 3.7 Any nominated vehicle must be available for business use at all times. There can be no limitation put on the business use and the employee must be able to perform normal duties at all times. Any replacement in the case of non-availability is the responsibility of the employee. Where an individual has a car allowance, Amey will not pay for hired cars from their home or office location. Individuals should not expect to expense trips by taxi or public transport, where it is reasonably expected they would use their car. Rev: 8.1 Date: March 2013 Ref: PLC-HR-014 Page 9 of 13

10 Damage or Loss 3.8 Amey has no responsibility or liability for any accident, injury, damage or loss that may occur to the vehicle, its driver, passengers or any third party. Alternative to Car Allowance 3.9 Employees who are eligible for a car allowance and who are not Business Need users, who prefer to use alternative means of transport, have the option of applying to receive the car allowance as a cash equivalent travel allowance, subject to the approval of their people manager (Band C or above) As the travel allowance is not being paid in relation to the use of a car the employee will not be required to provide proof of vehicle eligibility. In these circumstances the employee will be ineligible to claim car hire costs, business mileage or retain the use of a fuel card Before approving payment of the travel allowance, the people manager must satisfy themselves that the employee can fully meet the requirements of their role without the use of a car. Should there be a change in role the employee s eligibility for a travel allowance will need to be reviewed by their people manager. 4.0 Business Mileage Rates 4.1 Employees with a company car or car allowance who do not have a company fuel card are entitled to claim reimbursement for business mileage at the appropriate fuel only rate via expenses. The rates are published on Ameyworld. 5.0 Termination By the Employee 5.1 Should an employee wish to change to a company car then, subject to the general conditions applying at the time and the appropriate notice being given, the change can occur at any time. The Company will normally require up to three months notice of this change to ensure payments are stopped and that a vehicle can be provided. By Amey 5.2 The Group reserves the right to withdraw the car allowance scheme at any time, subject to giving three months notice to those employees receiving an allowance. 5.3 In the event that an employee does not continue to provide a suitable or reliable vehicle the Group reserves the right to remove the allowance and will give two months notice of such a change. 5.4 The allowance will automatically terminate on the termination of the employee s employment. Rev: 8.1 Date: March 2013 Ref: PLC-HR-014 Page 10 of 13

11 Fuel Cards Operation of Policy 1.0 Employee Eligibility 1.1 Employees in Bands F & G are eligible for a company fuel card to purchase fuel for both business and private use in the UK. 1.2 Employees in Bands A to E are not eligible to receive a fuel card unless they were already in possession of one on 1 November Until further notice those employees will be eligible to retain their fuel card and apply for a replacement card due to a change of vehicle. 2.0 Vehicle Eligibility 2.3 A fuel card will not be provided where the car is over seven years old. 2.1 A fuel card will not be provided for any vehicle with an engine capacity exceeding 2.5 litres (other than for Band G cars and for employees replacing an Executive level vehicle issued prior to 1 November 2010). 3.0 Requirements and Conditions 3.1 To acquire a fuel card, eligible employees must indicate their intention on either the relevant Company Car Order Form or the Car Allowance Application Form. 3.2 Company fuel cards may only be used for the specified vehicle. 3.3 No charge is made for reasonable private mileage in the United Kingdom, but fuel cards cannot be used for overseas travel. 3.4 Fuel cards should not be left in cars, they should be treated like credit cards, with a separate note kept of the number. If a fuel card is stolen or lost it must be reported immediately to Fleet Solutions ( Option 1) during office hours, and on out of office hours, so it can be cancelled. 3.5 When purchasing fuel employees must give mileage details to the cashier. If this is not provided then the entitlement to the company fuel card may be reviewed and withdrawn. Please note that this requirement is monitored by Fleet Solutions. 3.6 Employees must also record business and total mileage details in the manner prescribed by the Company. 3.7 Where unleaded petrol is purchased, the fuel card only applies to the normal 95 octane type and not for the super unleaded category. Please note that fuel expenditure is monitored by Fleet Solutions. 3.8 Drivers of company funded vehicles in possession of a fuel card with an oil icon on the reverse may use this to purchase engine oil for the vehicle. 3.9 Disciplinary action will be considered against any employee misusing their fuel card (e.g. using their card for a vehicle not specified on the card, purchasing super unleaded petrol, not giving mileage details to the cashier, the purchase of other garage miscellanea such as screen wash, anti-freeze, car wash, etc.) and could result in the removal of the fuel card. On leaving the company, employees must return the company fuel card to their people manager. Rev: 8.1 Date: March 2013 Ref: PLC-HR-014 Page 11 of 13

12 4.0 Business Mileage Records 4.1 Business Mileage records are critical to the effective operation of the FMP arrangements (company cars) and MMP arrangements (car allowance) including tax and NICs. It is therefore a requirement for all employees with a fuel card, whether they have a Company car or a Car Allowance to submit a Business Mileage Return every calendar month. This includes employees who do not undertake business mileage during the month who still need to make a nil return. 4.2 With effect from journeys undertaken from 1 April 2013 (6 April 2013 for employees in receipt of a car allowance), employees will be required to input records on the Innovation online Mileage System accessible via the following link: (FMP also monitors total mileage, requiring odometer readings at the start and finish of each month). 4.3 Registration details can be obtained from AmeyFuelQueries@innovationllp.com 4.4 If an employee does not submit the returns on a monthly basis then their continued entitlement to participate in FMP, MMP or/and to receive a company fuel card may be reviewed. 5.0 Taxation 5.1 Amey has introduced arrangements known as the Fuel Management Programme, or FMP, under which all company car drivers with a fuel card are required to reimburse the company the cost of fuel used for all private journeys. Accordingly, no benefit in kind arises and no tax liability is due in respect of the provision of fuel or the fuel card. Monthly deductions are made on account of the private fuel cost during the year and a true-up calculation is performed at the year end. 5.2 FMP allows company car drivers who would otherwise have a tax liability on the fuel benefit in kind to save money. Any employee driving below personal break even, i.e. where the cost of fuel for private journeys is less than the tax they would have paid to HMRC, will personally benefit under FMP. Amey pays additional, taxed, remuneration to compensate employees who are out of pocket as a consequence of FMP. That compensation is in return for keeping mileage records and calculated to ensure that no employee is worse off. Further guidance on FMP is available from OneHR. 5.3 With effect from the 2013/14 tax year, employees who receive a car allowance and who have a fuel card are included in the Mileage Management Programme (MMP). Any business mileage will be reimbursed at the AMAPs rate of 45ppm. Such employees will continue to be taxed on the total cost of fuel purchased on the fuel card at their nominal rate of tax. The full amount of fuel purchased on the card is declared to HMRC on form P11D at the end of the tax year. 5.4 The employee will receive full tax/nic relief on all business mileage provided they submit their business mileage returns each month. Failure to submit business mileage details will result in employees losing this relief and place them in breach of this policy. 5.5 For years up to and including 2012/13, the employee is entitled to claim tax relief for documented business mileage on their annual tax return or by filing a separate claim on form P87. Guidance on the arrangements for claiming relief (known as Mileage Allowance Relief ) is available on the HMRC website and can be found at The net effect of a claim is to ensure that the employee only pays tax on the private (non-business) component of the car Rev: 8.1 Date: March 2013 Ref: PLC-HR-014 Page 12 of 13

13 allowance and fuel cost, after allowance for business mileage at the approved rates. 5.6 As this relief is now given at source through the payroll for both tax and NIC, no such claims are possible for 2013/14 or subsequent tax years. Rev: 8.1 Date: March 2013 Ref: PLC-HR-014 Page 13 of 13