Page 5 - Fleet
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Type         Fuel Type               P11D       CO2         BIK%        Monthly      Tax Paid
                                                            Emissions               Taxable BIK   (20%/40%)
            Car A        RDE1 Diesel             £25000     102         28%         £583         £116/£232
            Car B        RDE2 Diesel             £35000     115         27%         £787         £157/£314
            Car C        Petrol/Electric Hybrid   £50000    49          16%         £666         £133/£266

            It is crucial that colleagues fully understand the tax liability of the car that they order. They should not rely
            on the taxation information supplied by the Fleet department, as this is subject to change at short notice.
            They should conduct their own research including visiting the car manufacturers’ and HMRC websites and
            use the calculation below to clarify the tax liability at the start of the lease.

                    (Car P11d value) x (BIK %) = annual BIK liability
                    Annual BIK liability x rate of taxation (20%, 40% or 45%) = Annual tax payable
                    Annual tax payable divided into 12 = monthly tax payable
            Colleagues should also bear in mind that tax legislation changes frequently and the tax payable through the
            lease can change.

            4.       Cash allowances and trade-downs


            Colleagues eligible for a company car may choose to receive a cash allowance, instead of a company car.
            Car allowances are paid as:
                •  a non-pensionable monthly addition to salary
                •  are liable to National Insurance and Income Tax

            Eligible colleagues opting to receive the Cash Allowance will receive payment in their first available payroll,
            and any payment will be pro-rated according to their start date in that month.

            Non-company allocated vehicles
            Colleagues who are in receipt of a car allowance must ensure that they possess a vehicle appropriate for
            business use. Any vehicle must be less than 5 years old, maintained to a roadworthy standard and insured
            for private and business use. The fleet department reserves the right to request an inspection of cars by
            appointment during business hours.

            Colleagues receiving cash allowance – Business Mileage
            Business mileage will be reimbursed at current fuel only mileage rates, rather than the standard HMRC rate
            for private car use.

            In order to claim mileage, colleagues can either:
                •  Use the manual mileage claim form and submit to Accounts Payable once approved
                •  Use a company fuel card, log business mileage onto an online mileage portal and be deducted for
                    personal mileage only

            Colleagues receiving cash allowance - Vehicle off Road
            Pool cars, owned by HSS, or hire cars, booked using the HSS account, will not be available to those who are
            in receipt of a car allowance.

            Colleagues transferring from cash allowance to company vehicle
            Colleagues who wish to switch from a cash allowance to a company car must obtain authorisation from an
            appropriate Director. The company reserves the right to provide an unassigned vehicle from the fleet prior
            to ordering a new vehicle.

            Colleagues switching from company car to cash allowance
            Colleagues with an allocated company car will not be permitted to switch to a car allowance until the end
            of the car’s lease. An exception may be made where all vehicles involved can be reallocated to another
            colleague at no cost to HSS.

            Trade-downs (Grade C, D and E only)
            Colleagues  may  elect  to  trade  down/select  a  model  in  a  lower  grade  to  reduce  their  company  car  tax
            liability. However, they will not receive the value of that saving in their salary.
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