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									     24004 PROCEDURE - SUBSIDISED CAR LEASING
                     SCHEME


Version: 2 Last Updated: 21/10/08          Review Date: 21/10/11

ECHR            Potential Equality Impact Assessment: Low



1.    About This Procedure

      1.1.   This procedure details the arrangements and conditions for
             providing a car to a member of staff under the Constabulary’s
             Subsidised Car Leasing Scheme.

      1.2.   Under the scheme the Constabulary will contract hire a new car
             of the member of staff’s choice for four years. The car, which is
             normally to be used for all business travel, is returned at the
             end of the contract period and the member of staff may then
             choose to enter into a further agreement.

      1.3.   The car will also be available for the member of staff’s private
             use.

      1.4.   The car will be financed by a specified annual contribution from
             the Constabulary; any remainder being met by a contribution
             from the member of staff. The member of staff will be
             reimbursed for petrol in respect of business mileage on a cost
             basis.

      1.5.   The scheme is administered for the Constabulary by the County
             Treasurer’s Department of Hampshire County Council.

      1.6.   A member of staff who wishes to join the scheme should study
             all the terms and conditions carefully before entering into a
             commitment. The member of staff will be deemed to have
             accepted these conditions on making an application for the car.

      1.7.   Applications to be made via the Car Lease Scheme Application
             form. Click here to view the Staff Benefits & Pensions, Intranet
             site.

      1.8.   This procedure is derived from 24000 Policy – Pay and Benefits
             (forthcoming) and links to other associated procedures. Please
             refer to section 8 of this procedure.


2.    Risk Assessment/Health & Safety Considerations

      2.1.   Not applicable
     24004 PROCEDURE - SUBSIDISED CAR LEASING
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3.    Procedure

      3.1.      Eligibility

             3.1.1.       The following members of staff are eligible:

                               a)    all permanently employed police staff
                                     provided that the permanent grade of their
                                     post is at least PO1, or has a maximum
                                     salary at least equivalent to the value of
                                     spinal column point 37 (maximum of PO1);

                               b)    permanently employed police staff
                                     designated Essential Users with permanent
                                     salary grades, of either SO1 or SO2 or
                                     equivalent;

                               c)    all police officers who qualify as ‘essential
                                     users’ (see Procedure 00320), complete in
                                     excess of 2,000 business miles per year
                                     and meet all other criteria (pro rata for
                                     part time officers).

             3.1.2.       Police Staff must also have successfully passed their
                          probation to be eligible.

             3.1.3.       Eligible members of staff employed on a part time
                          basis will receive a subsidy pro rata to contracted
                          hours.

             3.1.4.       Applications are subject to the approval of the member
                          of staff's Head of Department/OCU Commander and
                          the Head of Financial Services/Director of Finance.
                          Applications must be submitted with a signed copy of
                          the letter which details additional conditions of the
                          lease scheme. The application will not normally be
                          approved if:

                               a)    a member of staff is on a temporary
                                     contract of employment or a fixed term
                                     contract for less than four years;

                               b)    a member of staff is under notice of
                                     redundancy;
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                        c)    the salary deduction calculated exceeds
                              25% of the member of staff's normal net
                              pay;

                        d)    the member of staff has been disqualified
                              from driving.

        3.1.5.    Queries on eligibility should be directed to the relevant
                  Personnel Manager in the first instance.

        3.1.6.    The Constabulary reserve the right to refuse any
                  application which may:

                        a)    be unacceptable to the Contract Hire
                              Company, for whatever reason;

                        b)    be from an individual who is unacceptable
                              to the Constabulary's insurers, or whose
                              driving or claims history is such that their
                              inclusion in the insurance policy may lead
                              to an increase in premium.


 3.2.      Outstanding Car Loans And Disposal Of Existing
           Vehicle

        3.2.1.    A member of staff who intends to participate in the
                  scheme and who has an outstanding car loan is given
                  a maximum period of three months to dispose of the
                  existing car and repay the outstanding balance of the
                  loan. During this period normal car loan repayments
                  will be made. At the end of three months, any
                  outstanding balance will be recovered from salary. In
                  any event, a car loan is repayable immediately on sale
                  of the car for which the loan was granted.


 3.3.      Ownership Of The Car

        3.3.1.    The car remains the property of the Contract Hire
                  Company and the member of staff must not attempt to
                  sell the car, use the car as security for a loan, lead
                  anyone to believe that he/she is the owner of the car
                  or do anything that may infringe the Contract Hire
                  Company's rights.
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 3.4.      Choice Of Car And Factory Fitted Options And
           Accessories

        3.4.1.    The Constabulary has no wish to unduly restrict a
                  member of staff's choice of car, except to say that it
                  must be suitable for business use, and be capable of
                  running off either unleaded or diesel fuel. Additionally,
                  drivers under the age of 25 are restricted to vehicles
                  falling within insurance groups 1 to 9. Cars can be
                  supplied with factory fitted options. Dealer fitted
                  accessories, including towbars, may be ordered with
                  the car and the cost included in the quotation;
                  however such accessories remain the property of the
                  Contract Hire Company.

        3.4.2.    Cars will be delivered to The Castle, Winchester.
                  Drivers are required to produce their driving licence for
                  inspection when collecting their vehicle.

        3.4.3.    After delivery a user may, through the County
                  Treasurer, seek the permission of the Contract Hire
                  Company to arrange for accessories to be fitted at the
                  user's expense. Such accessories may be removed
                  before return of the car provided that removal does
                  not deface or devalue the vehicle.

        3.4.4.    When accessories remain fitted the additional cost of
                  supplying these extras or their value will not be
                  reimbursed to the member of staff at the end of the
                  hire agreement.

        3.4.5.    The fitting of towbars after delivery is usually
                  permitted but subject to Contract Hire Company
                  written prior approval. Staff wishing to fit towbars
                  should initially write to the County Treasurer who will
                  make the necessary arrangements. The towbar should
                  be fitted at a franchised dealership and the cost met
                  by the member of staff. It should be noted that
                  caravans/trailers etc. only have Third Party cover
                  under the Fleet Insurance. Please see paragraphs
                  3.4.3 and 3.4.4 above regarding end of hire
                  agreement arrangements.

        3.4.6.    No changes can be made to the car that may adversely
                  affect its resale value. The car may not be modified or
                  altered mechanically or have any parts removed, or
                  accessories added without the written permission of
                  the Contract Hire Company.
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 3.5.      Business And Private Use

        3.5.1.     Members of staff supplied with cars under this scheme
                   are required to use them for all business travel.
                   Exceptions are journeys to the Central London area,
                   journeys where the car is inappropriate (e.g. a larger
                   car is required) or where the use of public transport
                   would result in a saving of member of staff's time or if
                   otherwise directed by the member of staff's line
                   manager.

        3.5.2.     The car must be available for business use at all times,
                   except when being repaired or serviced.

        3.5.3.     Members of staff will be expected to travel by leased
                   car rather than with a member of staff receiving
                   essential or casual user allowances, unless otherwise
                   directed by the member of staff's manager.

        3.5.4.     Members of staff should also use their leased vehicles
                   for all training mileage and claim expenses at the
                   appropriate lease car mileage rate.

        3.5.5.     The car may be used for private mileage but not used
                   for any form of motoring competition or motor sport or
                   be used regularly on unmade roads or rough grounds.

        3.5.6.     The member of staff must make the car available for
                   inspection at any reasonable time by persons
                   authorised by the Constabulary or the Contract Hire
                   Company.

        3.5.7.     Returns of mileage claimed are required in all cases
                   and may be made monthly or quarterly in respect of
                   official journeys and petrol for business use
                   reimbursed on a cost basis. The rate payable per mile
                   is related to the petrol element of the Police Authority
                   mileage allowances. The member of staff will also be
                   required to provide the mile-o-meter reading on the
                   claim.


 3.6.      Foreign Travel

        3.6.1.     Foreign travel is permitted subject to the prior written
                   authority of the Contract Hire Company. The member
                   of staff must apply to the County Treasurer, giving one
                   month's notice, before departure from the UK, for a
                   ‘Green Card’ (and the permission of the Contract Hire
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                  Company) before undertaking foreign travel with the
                  car.

        3.6.2.    Maintenance and repair cover is not available outside
                  the UK and it is the member of staff's responsibility to
                  ensure the return of the vehicle to the UK in the event
                  of a mechanical failure or accident. Members of staff
                  must therefore take out an appropriate foreign travel
                  insurance (e.g. AA 5 star; RAC Eurocover) to ensure
                  that the vehicle can be repaired overseas, or returned
                  to the UK if repairs cannot be carried out in a
                  reasonable period at an acceptable cost.

        3.6.3.    Reimbursement of unforeseen repair costs outside the
                  UK is usually limited to UK price levels.


 3.7.      Maintenance Servicing And Repairs

        3.7.1.    The member of staff is responsible for ensuring that
                  routine servicing is carried out at the intervals
                  specified by the manufacturer and that other defects
                  are dealt with promptly, particularly during the period
                  of the manufacturer's warranty. A driver pack is
                  supplied with the car which explains how servicing and
                  repair work is authorised and members of staff are
                  advised to familiarise themselves with the contents of
                  the pack immediately after delivery.

        3.7.2.    The member of staff is expected to look after the car in
                  the same manner as a reasonably prudent owner with
                  responsibility, between services, for regularly checking
                  and topping up the levels of oil, water, battery and
                  brake fluid. The member of staff is also obliged to
                  ensure that the correct antifreeze mixture is
                  maintained, the tyre pressures are checked and the
                  car is kept clean, protected and well cared for. Tyres
                  should also be inspected regularly for signs of damage
                  or uneven wear and steps taken to arrange
                  rectification in accordance with the guidance set out in
                  the driver pack. The cost of any repairs that arise
                  from the negligence of the member of staff will be
                  recovered from him/her.

        3.7.3.    All bodywork, interior and trim repairs that are not due
                  to fair wear and tear, and not covered by an insurance
                  claim are the responsibility of the member of staff.
                  Failure to make good such repairs may result in a
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             charge from the Contract Hire Company to the
             member of staff at the end of the hire period.

    3.7.4.   The member of staff is required to ensure that the
             car's odometer (mile-o-meter) is kept in working order
             and must immediately inform the County Treasurer
             should a fault occur. Failure to do so, or any attempt
             to tamper with the odometer, may be considered to be
             a disciplinary matter.

    3.7.5.   The agreement includes servicing and mechanical
             repairs and service cover. Replacement of tyres,
             batteries, exhausts etc., is also covered provided that
             the repair or replacement results from fair wear and
             tear. Homestart, Roadside Assistance and
             Relay/Recovery facilities are also provided by the AA
             or RAC (depending on who supplies the car), however
             personal membership of a motoring organisation is not
             included.

    3.7.6.   The following are not covered in the agreement:

                  a)    repair/replacement charges in respect of
                        light bulbs, damage to glass and lamp
                        lenses (except where they are covered by
                        an insurance claim);

                  b)    costs relating to premature tyre
                        replacement resulting from abuse,
                        excessive wear, impact damage or
                        punctures, however caused.

    3.7.7.   When it is necessary for tyres, batteries, brake linings
             or exhaust systems to be renewed the supplier will
             obtain authorisation from the Contract Hire Company
             on production of the credit authorisation card supplied
             with each vehicle. Members of staff must ensure that
             the Contract Hire Company is willing to meet the cost
             of replacement before allowing the work to be carried
             out. Failure to obtain this agreement could lead to the
             Contract Hire Company recharging the Constabulary
             and therefore the member of staff if the replacement is
             deemed to be premature. The cost of such repairs or
             replacements which fall outside the maintenance
             agreement should be paid for by the employee when
             collecting the vehicle.

    3.7.8.   In the event of windscreen/window replacement,
             members of staff should only use the Autoglass card
24004 PROCEDURE - SUBSIDISED CAR LEASING
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                  supplied with each vehicle as the use of other
                  companies could incur the Constabulary in extra cost
                  which in the event will be recovered from the member
                  of staff. Whenever possible, repairs should be carried
                  out during normal working hours.

        3.7.9.    Any credit authorisation card supplied by the Contract
                  Hire Company may only be used for repairs and
                  maintenance for the car supplied. The members of
                  staff will be liable for any charges improperly incurred
                  and improper use may be considered to be a
                  disciplinary matter.


 3.8.      Replacement Vehicle

        3.8.1.    The annual contract hire does not include a
                  replacement vehicle in the event of the lease car not
                  being available due to routine servicing, mechanical
                  failure, accident damage or total loss arising from theft
                  or write off.

        3.8.2.    The County Treasurer will be pleased to provide terms
                  for the cost of a replacement vehicle to be supplied in
                  the above circumstances on request. This provision is
                  optional.

        3.8.3.    Members of staff should note that the time period after
                  which a replacement car will be available, i.e. 24
                  hours, 48 hours, commences when the request is
                  made to the Contract Hire Company and not when the
                  original car becomes unavailable.


 3.9.      Payment For The Car

        3.9.1.    The annual cost of contract hire and insurance will be
                  met by:

        3.9.2.    The Constabulary's Contribution

                        a)    For police staff a fixed annual contribution
                              is paid according to the substantive post
                              salary (a temporary upgrade will not incur
                              additional contribution). Current subsidy
                              levels are set out in Appendix A.

                        b)    For all police officers, an alternative is used
                              to calculate a subsidy based on the scale of
24004 PROCEDURE - SUBSIDISED CAR LEASING
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                        allowances for essential users. In this case
                        an assessment is made at the beginning of
                        the year of the value of his/her estimated
                        business mileage for the following 12
                        months. If the estimated figure proves to
                        be higher than the actual business mileage
                        then the difference between the estimated
                        and the actual calculation will be recouped
                        from the lease at the end of each financial
                        year. This will include instances where
                        business mileage changes due to post
                        changes. Therefore police officers need to
                        consider the implications of a change of
                        post.

                  c)    The scale of essential user allowance, i.e.
                        lump sum and mileage element will be
                        calculated net of the cost of petrol (i.e. net
                        of leased car rate) which will be
                        reimbursed separately on a claims basis.

                  d)    The estimated annual business mileage
                        should not be exceeded as this also
                        impinges on lease payment calculations for
                        which an officer would be liable. In this
                        respect, it should be noted that for police
                        officers, para 3.5.1 does not prohibit the
                        use of police vehicles, if to do so would
                        achieve a better utilisation of the force
                        vehicle fleet.

                  e)    In all cases the Constabulary's contribution
                        will not exceed the cost of contract hire
                        plus insurance.

                  f)    Part time staff will be entitled to receive a
                        proportion of the fixed contribution per
                        month in the same ratio as the number of
                        contracted hours bears to a full time
                        appointment.

    3.9.3.   The Member of Staff's Contribution

                  a)    The difference between the Constabulary's
                        contribution and the annual cost of
                        contract hire and insurance plus VAT will
                        be the member of staff’s contribution.
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                        b)    Mileage claims will still be made and petrol
                              used for business mileage and relocation
                              mileage during the support period will be
                              reimbursed on a cost basis, i.e. the fuel
                              element included in the mileage allowance
                              (leased car rate). A list of current rates is
                              shown in Appendix B.

         3.9.4.    The member of staff's contribution will be collected by
                   deduction from salary.

         3.9.5.    As the annual contract hire cost is calculated by the
                   Contract Hire Company with reference to the projected
                   mileage over the four year contract, it is important
                   that care is taken to estimate, as accurately as
                   possible, the annual business and private mileage.

         3.9.6.    Business mileage does not include additional mileage
                   arising from relocation. Such mileage should be shown
                   separately on the application form so that the
                   additional annual rental cost arising during the period
                   of support can be identified and allowed for in the
                   Constabulary's contribution.

         3.9.7.    Business mileage can be defined as the mileage a
                   member of staff travels in the performance of his/her
                   duties and is as such reimbursed as part of a
                   casual/essential car user's allowance. Consequently,
                   training mileage and mileage travelled as a result of
                   redeployment should be detailed separately. Mileage
                   to and from a member of staff's place of work is
                   regarded as private mileage.

         3.9.8.    Members of staff should note that there is a tendency
                   for cars supplied under the scheme to be driven more
                   frequently and projections should take account of this.


 3.10.      Excess Mileage

         3.10.1.   If the total mileage is exceeded at the end of the
                   contract, excess mileage charges will be levied by the
                   Contract Hire Company. Excess mileage relating to
                   private usage will be recharged to the member of staff.

         3.10.2.   The charge for each excess mile ranges from 2p to
                   10p, depending on the size of the car and the company
                   supplying the car.
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         3.10.3.   The County Treasurer will not normally renegotiate the
                   rental agreement with the Contract Hire Company
                   unless the difference between the estimated and
                   actual private mileage is substantial, i.e. at least 1,000
                   miles per annum difference. In cases where a
                   significant excess private mileage charge is accruing,
                   application may be made in writing to the County
                   Treasurer who will, if necessary, make arrangements
                   to collect the excess over the remaining months of the
                   contract in order to avoid a considerable excess private
                   mileage charge falling due at the end of the contract.


 3.11.      What The Member Of Staff Pays

         3.11.1.   In addition to the member of staff's contribution the
                   following charges may arise and are recoverable from
                   the member of staff:

                         a)    increases in road fund licence and VAT will
                               be recovered by amending the monthly
                               deduction from pay as will any cost
                               incurred as a result of legislation;

                         b)    charges arising from the following will be
                               deducted from pay, or by agreement will
                               be invoiced:

                                  i.    any accidental damage excesses
                                        deducted from insurance claims;

                                  ii.   repairs resulting from negligence or
                                        repairs carried out outside the UK
                                        or deemed to be outside the
                                        maintenance agreement;

                                 iii.   any fines etc. arising during the
                                        period of the agreement for
                                        breaches of road traffic regulations
                                        are the responsibility of the
                                        member of staff and if they are not
                                        paid promptly may be paid by the
                                        Contract Hire Company and
                                        recovered from the member of staff
                                        together with an administration
                                        charge, such fines will be paid by
                                        the Constabulary on demand;
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                                  iv.    any charges the Constabulary
                                         incurs because the members of
                                         staff failed to carry out the
                                         instructions or authorisation
                                         procedures specified in the
                                         Contract Hire Company's driver
                                         instruction book/handbook;

                                   v.    settlement figures arising from
                                         prior termination, see Section 3.17;

                                  vi.    any charges for damage or excess
                                         wear and tear during or at the end
                                         of the agreement;

                                 vii.    any charges for excess mileage at
                                         the surrender of the vehicle;

                                 viii.   any costs the Constabulary or
                                         Contract Hire Company incur in
                                         recovering the vehicle if it is not
                                         returned to The Castle on expiry or
                                         termination of the agreement.

         3.11.2.   In default, deductions will be made from the member
                   of staff's salary or from other sums due to the member
                   of staff from the Constabulary.


 3.12.      Change Of Circumstances

         3.12.1.   If an officer is transferred, for any reason, during the
                   currency of the lease to a post which is not eligible for
                   vehicle user allowances, she/he will become
                   responsible for either the full cost of the continuation
                   of the lease or a settlement figure determined by the
                   Contract Hire Company to cancel the hire.

         3.12.2.   If a change of post results from redeployment, ill
                   health or other exceptional circumstances, the Head of
                   Department/OCU Commander, after consultation with
                   the Head of Personnel and Director of Finance may
                   agree that the terms of the existing agreement
                   continue.

         3.12.3.   If a member of staff becomes disabled during a car
                   lease contract period and as a result needs to end their
                   lease contract (as they can no longer drive for
                   example) or change vehicles for one which is more
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                   suitable, then the Head of Personnel, in consultation
                   with the Director of Finance, will consider the case, the
                   cost to the Constabulary and whether any reasonable
                   adjustments can be made to the contractual
                   obligations of the member of staff, with regards to
                   payment of early redemption costs or other charges
                   related to ending/ changing the lease agreement.

         3.12.4.   For members of staff entitled to maternity leave the
                   following options will apply:

                         a)    Option 1: The subsidy will remain
                               unaltered throughout the period of
                               maternity leave.

                         b)    Option 2: The member of staff may return
                               the car at no penalty at the
                               commencement of maternity leave.

         3.12.5.   In the event of the member of staff electing for Option
                   1 above and subsequently not returning to work, the
                   contract shall be deemed to have ceased at the date of
                   expected return to work and normal prior termination
                   penalties will apply. In exceptional circumstances the
                   Head of Personnel, in consultation with the Director of
                   Finance, may agree to meet all or part of these
                   charges. In such circumstances, the member of staff
                   must return the car to the County Treasurer without
                   delay.

         3.12.6.   These options are also set out in the attached file.

         3.12.7.   Members of staff on Career Breaks and unpaid leave in
                   excess of one month will need to return the vehicle
                   when the career break/unpaid leave commences. The
                   member of staff will be responsible for meeting all
                   charges levied by the Contract Hire Company including
                   the early termination charge.


 3.13.      Insurance

         3.13.1.   Comprehensive insurance will be arranged by the
                   Constabulary on a fleet motor policy. This insurance
                   carries very limited cover for personal effects and
                   members of staff are advised to ensure that their
                   home contents insurance carries adequate cover for
                   loss of personal effects from the vehicle.
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         3.13.2.   The premium will be based on the insurance group of
                   the vehicle and the age of the member of staff.

         3.13.3.   Current insurance premiums are shown in Appendix D
                   with details of policy excesses.

         3.13.4.   Members of staff are required to complete an
                   insurance declaration covering themselves and, where
                   applicable, their partner. Other members of the
                   member of staff's immediate family normally resident
                   with him/her may be added to the list of authorised
                   drivers but an insurance declaration must be
                   completed and approved beforehand.

         3.13.5.   The Policy only relates to the leased vehicle, and does
                   not provide any cover for the member of staff or other
                   named drivers when using any other vehicle.

         3.13.6.   The Constabulary reserves the right to withdraw
                   leasing availability or to substantially increase the
                   insurance excesses and premiums if, in the opinion of
                   the Insurer and/or the County Treasurer and County
                   Secretary, the member of staff's claim or driving
                   record warrants such action.

         3.13.7.   An incident which may give rise to an insurance claim
                   and any motoring conviction against the member of
                   staff or any named driver must be immediately and
                   fully reported to the County Treasurer. If the driver is
                   disqualified from driving, the County Treasurer may
                   withdraw the leasing availability in which case the
                   vehicle must be returned to The Castle immediately
                   and the lease will be terminated (see 3.17 Prior
                   termination of hire agreement). All insurance repair
                   work should be carried out in accordance with advice
                   from the County Treasurer when an incident is
                   reported.


 3.14.      Uninsured Losses

         3.14.1.   The policy does not provide for the recovery of
                   uninsured losses, e.g. policy excesses, car hire etc. It
                   is the sole responsibility of the member of staff to
                   pursue recovery from the third party.

         3.14.2.   The policy specifically excludes the costs of claims
                   associated with the theft of vehicles where the car has
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                         been left unattended but with the keys inside the
                         vehicle.

               3.14.3.   In cases where the Authority itself incurs an uninsured
                         loss, for example uninsured termination charges
                         arising from a write off or theft etc, the Constabulary
                         reserves the right to pursue any negligent party.


       3.15.      Personal Accident Cover

               3.15.1.   Although the Constabulary operates a Personal
                         Accident Scheme whereby members of staff may
                         recover certain costs if they were actually on duty at
                         the time of the accident, the fleet insurance does not
                         in itself include any personal accident cover. Members
                         of staff are therefore advised that if they wish to
                         include such cover, i.e. for injuries sustained on
                         private mileage where no other party was negligent or
                         injuries outside of the scope of the Constabulary's
                         Personal Accident Scheme, they should make their
                         own arrangements.


       3.16.      Taxation

               3.16.1.   Cars provided by the Constabulary under the scheme
                         are available for private use and therefore are of
                         "benefit" to the member of staff. From 6 April 2002
                         the "benefit" has been calculated as a percentage of
                         the full manufacturers list price of the vehicle plus
                         taxes, delivery charges and accessories. The
                         percentage applied is defined by the CO2 emissions of
                         the vehicle. The table below shows the CO2 emissions
                         and their current related percentage charge.

Grams    per Percentage of Diesel Supplements
km           car’s    price
             taxed
120          10             Add 3% if car runs solely on diesel
                              1

135              15           Add 3% if car runs solely on diesel
                              1

140              16           Add 3% if car runs solely on diesel
                              1

145              17           Add 3% if car runs solely on diesel
                              1

150              18           Add 3% if car runs solely on diesel
                              1
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155         19           Add 3% if car runs solely on diesel
                         1

160         20           Add 3% if car runs solely on diesel
                         1

165         21           Add 3% if car runs solely on diesel
                         1

170         22           Add 3% if car runs solely on diesel
                         1

175         23           Add 3% if car runs solely on diesel
                         1

180         24           Add 3% if car runs solely on diesel
                         1

185         25           Add 3% if car runs solely on diesel
                         1

190         26           Add 3% if car runs solely on diesel
                         1

195         27           Add 3% if car runs solely on diesel
                         1

200         28           Add 3% if car runs solely on diesel
                         1

205         29           Add 3% if car runs solely on diesel
                         1

210         30           Add 3% if car runs solely on diesel
                         1

215         31           Add 3% if car runs solely on diesel
                         1

220         32           Add 3% if car runs solely on diesel
                         1

225         33           Add 3% if car runs solely on diesel
                         1

230         34           Add 3% if car runs solely on diesel
                         1

235         35           Add 3% if car runs solely on diesel
                         1

240         35           Add 3% if car runs solely on diesel
                         1




          3.16.2.   Where a diesel vehicle which meets the Euro IV
                    emissions standard is registered by the 31st December
                    2005 it will not be subject to the Diesel Supplement.

          3.16.3.   If the vehicle is registered before the 31st December
                    2005 and does not meet the Euro IV emissions
                    standard it will be subject to the Diesel Supplement.

          3.16.4.   If the vehicle does meet the Euro IV emissions
                    standard but is first registered on 1 January 2006 or
                    later it will be subject to the Diesel Supplement.
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                SCHEME


         3.16.5.   Note that the minimum and maximum percentage
                   charges are 15% and 35% respectively.

         3.16.6.   All price / cost quotations provided by the our
                   contractor, Hampshire County Council (HCC) will
                   include an assessment of the likely income tax cost of
                   leasing any particular vehicle. This estimate will be
                   based on the information available at the time and
                   does not represent a binding offer. It should be noted
                   that the actual income tax payable on the leased
                   vehicle is calculated at the member of staff’s personal
                   marginal rate. Any differences between the actual rate
                   used to calculate the `benefit’ and that provided by
                   HCC for quotation purposes is the responsibility of the
                   member of staff.

         3.16.7.   Examples of the calculation are set out in Appendix E.

         3.16.8.   Where the member of staff makes a contribution
                   towards the financing of the car that contribution is
                   used to offset the ‘benefit’ and reduce the member of
                   staff's liability to tax. The maximum amount of such
                   an offset is a sum equal to the car benefit. Therefore,
                   in some cases, the member of staff's contribution may
                   equal or exceed the cash equivalent resulting in no tax
                   liability. Such contributions are deemed to be in
                   respect of the vehicle being available for private use.
                   Such contributions are deemed to be in respect of the
                   vehicle being available for private use.

         3.16.9.   Essential users will be aware that their existing
                   allowances are in some instances the subject of a tax
                   assessment. Members of staff opting for a leased car
                   will no longer be liable to tax under these
                   arrangements and the Inland Revenue will be
                   informed, so that the year's assessment may be
                   correctly apportioned between the two ‘schemes’.


 3.17.      Prior Termination Of Hire Agreement

         3.17.1.   Unless otherwise agreed the car is provided for a fixed
                   four year period and if the agreement is prior
                   terminated by either party for any of the following
                   reasons:

                        a)    the termination of the member of staff's
                              employment with the Constabulary,
24004 PROCEDURE - SUBSIDISED CAR LEASING
                SCHEME

                           whether by voluntary resignation,
                           retirement or dismissal;

                     b)    the member of staff being disqualified from
                           driving a car;

                     c)    the member of staff breaches the terms of
                           the scheme;

                     d)    the member of staff is transferred, for any
                           reason, during the currency of the lease to
                           a post which is not eligible for a leased
                           vehicle.

    3.17.2.    The member of staff is liable for:

         a)   a settlement figure determined by the Contract Hire
              Company to clear the vehicle from their books and so
              end the relationship with the Constabulary as hirer.
              This figure will not exceed 50% of the annual rental plus
              VAT;

         b)   a reimbursement of the Constabulary's advance
              payment of annual rental plus insurance in respect of
              the period from the date of termination to the end of
              the year, i.e. for a car hired on 1 January the
              Constabulary would have paid the full annual cost in
              advance so that termination on 30 September would
              require reimbursement of three twelfths of the annual
              rental.

    3.17.3.    Examples of the calculation are set out in Appendix F.

    3.17.4.    The Constabulary may, at the discretion of the Head of
               Personnel, after consultation with the Director of
               Finance, meet all or part of the settlement figure
               where prior termination of the agreement is as a result
               of:

                     a)    ill health retirement;

                     b)    redundancy or retirement in the interests
                           of efficiency of the service;

                     c)    disqualification from driving on
                           health/medical grounds;

                     d)    death of the member of staff.
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                SCHEME

         3.17.5.   The underlying intention of this scheme is to improve
                   the recruitment and retention of staff. Where prior
                   termination arises within the first two years of the first
                   agreement as a result of the member of staff's
                   voluntary resignation or retirement (not redundancy or
                   retirement on grounds of ill health), the whole or part
                   of the fixed annual allowance becomes payable.

         3.17.6.   The sum repayable is equivalent to the difference
                   between Police Authority travelling allowance and the
                   fixed allowance, up to a maximum of one year's
                   difference, i.e. the Constabulary's contribution and the
                   amount the member of staff would have received by
                   way of travelling allowances.

         3.17.7.   This sum is in addition to any payment under 3.17.1
                   above.

         3.17.8.   If the car is stolen, or is considered to be beyond
                   economic repair by the Constabulary's insurers
                   following an accident (a ‘write off’) or uneconomic to
                   maintain by the Contract Hire Company the
                   Constabulary reserves the right to substitute the car
                   with one of as near equal age and specification as
                   practicable. Members of staff should be aware that, in
                   the case of stolen cars, the contract and payments
                   continue until the leasing company has received full
                   and final settlement from the insurers.

         3.17.9.   If the member of staff is taking up employment with
                   another employer that operates a car scheme, it may
                   be possible to transfer the existing vehicle to that
                   scheme. In these circumstances, and provided that no
                   loss occurs then no termination figure will be payable,
                   but the penalty for termination within 2 years under
                   3.17.3 remains.


 3.18.      End Of Hire Agreement And Surrender Of Vehicle

         3.18.1.   At the end of the agreement period, or on prior
                   termination, the car must be returned to The Castle,
                   Winchester. Failure to return the vehicle, without good
                   reason, may lead to the Constabulary incurring an
                   additional hire cost which will be recovered from the
                   member of staff. Failure to return the car may also be
                   considered to be a disciplinary matter.
     24004 PROCEDURE - SUBSIDISED CAR LEASING
                     SCHEME

             3.18.2.      The member of staff is responsible for returning the
                          vehicle in a good and clean condition. The member of
                          staff is responsible for and will be required to meet the
                          cost of:

                                a)    rectification of any defects in the
                                      bodywork, interior or trim of the vehicle
                                      which the Contract Hire Company does not
                                      consider to have resulted from fair wear
                                      and tear;

                                b)    the cost of replacing any missing
                                      equipment or accessories;

                                c)    making good any damage caused by fitting
                                      or removing other accessories.

             3.18.3.      Normal use does not give rise to an additional charge
                          and fair wear and tear is related to the vehicle's
                          mileage. Fair wear and tear includes superficial scuffs
                          and repaired stone chipping of the bodywork.
                          However, bodywork dents, scratches that have broken
                          the surface of the paintwork to reveal undercoat or
                          metal, damage to the interior trim and tears in
                          upholstery, count as excess wear and tear and are the
                          subject of a rectification charge. Cracked or damaged
                          glass, mirrors and lenses are subject to recharge.

             3.18.4.      On surrender, the Constabulary will use its best
                          endeavours to ensure that the company offers to sell
                          the car to the member of staff or to the member of
                          staff's nominee. This will give the member of staff (or
                          nominee) 'first refusal' to purchase the car. The price
                          of the vehicle will be strictly a matter between the
                          Contract Hire Company and the member of staff. If
                          the purchase takes place before the expected contract
                          end date, prior termination charges are payable in
                          accordance with these terms and conditions.


4.    Roles & Responsibilities

      4.1.      Staff are responsible for:

                  a)    Complying with the terms and conditions of subsidised
                        car leasing.

                  b)    Using the car supplied under the scheme for all business
                        travel, including training.
24004 PROCEDURE - SUBSIDISED CAR LEASING
                SCHEME


          c)    Claiming expenses at the appropriate lease car mileage
                rate.

          d)    Ensuring the car is available for inspection at any
                reasonable time.

          e)    Applying for a ‘Green Card’ in the event of foreign
                travel.

          f)    Ensuring all servicing is carried out and that other
                defects are dealt with promptly.

          g)    Ensuring the car is looked after and maintained.

 4.2.   Heads of Department/OCU Commander’s are responsible for:

          a)    Approval of member of staff’s application.

          b)    Considering after consultation with the Head of
                Personnel if terms of existing agreement should
                continue if a post changes as a result of redeployment,
                ill health or another reason at the management’s
                instigation.

 4.3.   Director of Finance/Head of Financial Services

          a)    Approval of member of staff’s application.

          b)    Considering after consultation with the Head of
                Personnel to meet all or part of the charges occurred
                following a period of maternity leave.

          c)    Considering after consultation with the Head of
                Personnel whether to meet all or part of the settlement
                figure where prior termination of the agreement is as a
                result of:

                      i.    ill health retirement;

                      ii.   redundancy or retirement in the interests of
                            efficiency of the service;

                     iii.   disqualification from driving on
                            health/medical grounds;

                     iv.    death of the member of staff;

 4.4.   County Treasurer
     24004 PROCEDURE - SUBSIDISED CAR LEASING
                     SCHEME


                   a)    Approval of member of staff’s application.

                   b)    Reserves the right to refuse applications.

                   c)    Provide price/cost quotations.

      4.5.      Personnel Managers

                  a)     Provide advice on eligibility.


5.    Administration

      5.1.      Applications for leased cars to be made by staff to the OCU
                Commander/Head of Department.

      5.2.      If approved application forwarded to the Director of Finance for
                final approval, accompanied by a signed copy of the ‘additional
                conditions’ letter (hyperlink to letter in MS Word).

      5.3.      If approved application will then be forwarded to the Car Leasing
                Section of Hampshire County Council who will make
                arrangements direct with the member of staff for lease of the
                vehicle.


6.    Monitoring/Evaluation

      6.1.      It is the responsibility of the Head of Personnel to monitor and
                ensure the effective operation of this procedure.


7.    Review

      7.1.      This procedure will be reviewed annually to ensure its continuing
                relevance and effectiveness.


8.    Linked Procedures, Policies & Information Sources

      8.1.      24000 Policy – Pay and Benefits (forthcoming)

      8.2.      AD203 – Equality Impact Assessment

Origin:      Personnel
    24004 PROCEDURE - SUBSIDISED CAR LEASING
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1. Appendix A

      1.1      Hampshire Constabulary’s Contribution - As At June 2004

                                      Monthly             Annual
                                      Contribution        Equivalent
                                      £                   £
ACPO                                  ACPO                ACPO
HM Grades ‘A’ to ‘F’ (where not       217                 2610
ACPO)
PO Grades 3 and 4/HMG ‘G’             171                 2052
PO Grades 1 and 2                     146                 1754
SO Grades 1 and 2
(Essential Car Users only) or
deemed equivalents


1. Appendix B

      1.1      Mileage Rates As At 01/04/04

      1.1.1.     Please see the Force Intranet


1. Appendix C

      1.1      Options For Maternity Leave

      1.1.1.     See Attachment


1. Appendix D

      1.1      Insurance

      1.1.1.   A fleet motor policy has been arranged with Royal Insurance UK
          Limited. The premium payable is determined by the Insurance
          Grouping of the car and the age of the employee as follows:

Annual Premiums 2000/2001
Age              Insurance Group
                 1-6        7-9             10-11    12-15       16-20
                 £          £               £        £           £
30 and over      347        393             443      515         730
28 and under 30 399         452             509      593         839
25 and under 28 416         472             532      618         876
    24004 PROCEDURE - SUBSIDISED CAR LEASING
                    SCHEME

21 and under 25      520            591        These cars are
Under 21             756            858        not available


      1.2    Policy Excesses

             1.2.1         Generally, the employee and other drivers nominated by
                           the employee to drive the car will be responsible for the
                           first £100 of any claim, including theft, but there are
                           higher excesses for second and subsequent claims within
                           a contract period and for young and inexperience drivers.
                           The full table is as follows:

Drivers age at         25 years and over      21-24 years    Less than 21 years
time of incident
                       £                      £              £
First claim            100                    200            300
Second claim           175                    275            375
Third and              250                    350            450
subsequent claim

             1.2.2         NOTES:

                   a) Where the driver is the holder of a provisional licence or has
                   held a full licence for less than one year a loading of 150% of
                   the above values will apply.

                   b) Each windscreen or window glass replacement carries a £50
                   excess and will not county towards the above stepping process.


      1.3    Uninsured Losses

             1.3.1         The policy does not provide for the recovery of uninsured
                           losses, e.g. policy excesses, car hire etc. It is the sole
                           responsibility of the officer to pursue recovery from the
                           third party.


1. Appendix E

      1.1    Personal Tax Implications

      1.1.1.   Cars provided by the Constabulary under the scheme are
          available for private use and therefore are deemed to be of “benefit”
          to the member of staff. From 6 April 2002 HMRC have quantified this
          benefit and expressed it as a percentage of the vehicle’s full list price
    24004 PROCEDURE - SUBSIDISED CAR LEASING
                    SCHEME

            plus taxes, delivery charges and extras. The percentage charge is
            based on the CO2 emissions of the car as previously described.

An example of the calculation

List Price of Car (Petrol Engine) £15,000
CO2 = 175gms = 23%                £3,450             Car Benefit Charge
Less: Employee contribution for £ 900
private use
Taxable Benefit                       £2,550
Tax @ 20%                             £ 510
Tax @ 40%                             £1,020

List Price of Car (Diesel Engine)     £15,000
CO2 = 175gms = 26% (23% +             £3,900         Car Benefit Charge
3%)
Less: Employee contribution for       £   900
private use
Taxable Benefit                       £3,000
Tax @ 20%                             £ 600
Tax @ 40%                             £1,200

      1.1.2.   The Inland Revenue will collect tax due on the car benefit at the
          member of staff’s personal rate by adjusting the personal tax code
          applied to their salary.

      1.1.3.      Notes:

                a) The benefit is proportionately reduced if the car is not
                available for part of the year.

                b) Members of staff earning less than £8,500 per annum will
                have no liability arising from the provision of a car. (The car
                benefit is treated as earnings for the purposes of calculating total
                annual earnings.)


1. Appendix F

      1.1      Prior Termination Calculation

      1.1.1.   Prior termination charges are payable by the member of staff in
          the circumstances outlined in paragraph 16.1 of the Terms and
          Conditions. The amount payable is dependent upon the age of the
          vehicle and is expressed in terms of a proportion of the annual rental
          as invoiced to the Constabulary by the Contract Hire Company. The
          charges are as follows:
24004 PROCEDURE - SUBSIDISED CAR LEASING
                SCHEME

      Termination in:    Additional Termination Charge
      First six months   12 months’ annual rental
      Months 7-12        10 months’ annual rental
      Months 13-24       6 months’ annual rental
      Months 25-36       4 months’ annual rental
      Months 37-48       2 months’ annual rental

 1.1.2.    Therefore, if a vehicle with an annual rental of £2400 pa was
     prior terminated in the second year of the contract, the early
     termination charge payable by the member of staff would be £1200
     (i.e. 50% of £2400). Termination charges also attract VAT at the
     standard rate.

								
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