SCC Salary Sacrifice Frequently Asked Questions

  • The Somerset County Council My New Car Salary Sacrifice scheme (“the scheme”) gives employees the opportunity to use a new, fully maintained and insured car. Somerset County Council (“the Council”) is working with Knowles Associates Total Fleet Management Ltd (Knowles Associates) to provide this benefit.
  • The car will be funded through a ‘Salary Sacrifice’ arrangement which means that an employee ‘sacrifices’ an amount of salary in exchange for the use of a vehicle provided to them by Somerset County Council who will source the vehicle and pay the corresponding monthly car lease payment to Knowles Associates under the framework of a company car scheme. The arrangement is designed in some circumstances to give the employee a saving in tax and National Insurance (NI) on the amount of salary that they sacrifice in exchange for the car, when compared with them funding a car out of their ‘net’ pay.
  • Car Salary Sacrifice calculation
    With a car salary sacrifice arrangement, the employee is provided with a car which is available for their private use together with insurance, maintenance and other running costs. The full amount sacrificed will be considered when calculating the P11d benefit unless the car is an Ultra Low Emission Vehicle (of no more than 75g/km) in which case the CO2 emissions are considered and the benefit is likely to be less than the amount of salary foregone.
  • During the period of the lease the car will remain the property of Knowles Associates and will not be owned by the employee.
  • In order to process any applications within the scheme, Knowles Associates will need some personal information from an employee; this will include their name, home address and the preferred address for delivery and collection. If the application proceeds to an order, the home address will need to be retained for future correspondence. Knowles Associates will not use employee information for any other purpose than in relation to the scheme. All information once deemed unrelated/out of date will be removed from Knowles Associates systems automatically.
  • Employees are able to seek independent advice if they have any questions or concerns on the financial/tax implications of embarking on this scheme. Reference may also be made to the Frequently Asked Questions, which provides further information on how the scheme operates.
  • The car can be used by any authorised scheme driver. Authorisation will be approved at the time of order for the main driver and up to three additional drivers.
  • The insurance will cover the following:
    • Personal use (social domestic and pleasure which includes commuting, personal journeys and holidays, the same as if the car was personally owned) and
    • Business mileage for the main driver only (see below)
  • Personal use is unrestricted to the main driver, spouse and an additional two drivers subject to the mileage limit chosen. The usual car insurance restrictions will apply e.g. the car will be used for approved purposes only.
  • Business use of a car selected under the scheme is limited to one appointed main driver only. Where the vehicle is used as a main vehicle for a Somerset County Council employee, business insurance will apply. Where the vehicle is leased for a family member, business insurance will apply to the main driver only (Refer to section 4 “Employee Responsibilities” for further information about insurance).
  • A fixed monthly charge is applied for the term of the lease and this provides:
    • Use of the vehicle
    • Fully comprehensive motor insurance for personal use (and use on Council business) and private use for partner/spouse at the same address.
    • UK roadside assistance.
    • Maintenance of the vehicle including all servicing, batteries and exhausts under normal wear and tear conditions.
    • No quibble tyre replacement
    • Annual Road Fund Licence.
    • Accident management.
  • An individual’s gross salary is reduced by the fixed monthly charge which is based on their choice of car. Normal tax and National Insurance deductions are then made to the reduced amount.
  • Benefit in Kind (BIK) taxation applies to the scheme car and is reported via the P11D (statement of benefits) process and is recovered by changes to the employee tax code. Click here to access the HMRC website for further information on the tax treatment of company cars.
  • The only additional every day running cost is the fuel for personal use. Any business mileage undertaken in the lease car can be claimed at the Council’s normal business mileage rate, but the element above the HMRC approved lease car rate will be subject to tax and national insurance at time of payment. see the Travel and Subsistence policy for details.
  • Note: Some other costs may arise for which the employee is responsible but these are largely avoidable. The main potential costs are excess mileage charges, non-wear and tear tyre damage and punctures, unreasonable wear and tear at end of lease, insurance excesses where the third party has not reimbursed and early termination charges.
  • Cars under this scheme are provided by Knowles Associates to Somerset County Council who is responsible for the management of the cars throughout the term of the lease.
  • All permanent Somerset County Council employees are eligible to join the scheme, provided that they are not:
    • serving their notice
    • in scope for a TUPE transfer
    • on Teachers terms and conditions.
    • driving with 9 points or more on their license
    • in receipt of a driving ban at any point within the last three years (consideration may be given where a driving ban results from multiple offences)
    • on a temporary or fixed-term contract with an expiry date before the end of the agreement.
    • Earning less than the National Minimum Wage and the National Insurance contributions Lower Earning Limit after the amount of sacrifice has been applied.
    • Employees will be eligible to join the scheme once they have completed their 6 month probation period however this period may be reduced at the discretion of the Strategic Manager – HR Admin and Payroll Services, and the employee’s Service Director
    • Eligibility to the scheme may be restricted for employees that are currently undergoing a disciplinary/capability process or in receipt of a disciplinary/capability sanction. This will be at the discretion of the Strategic Manager – HR Admin and Payroll Services and the employee’s Service Director
    • Final eligibility to the scheme will always be at the discretion of the Strategic Manager – HR Admin and Payroll Services and the employee’s Service Director.
  • Employees under the age of 21 or approaching the age of 65 may be subject to separate insurance checks.
  • Employees without a licence can insure their family members without the employee needing to be insured themselves.
  • A Personal Lease scheme and an ex-lease car Purchase scheme are also available from Knowles Associates via the Somerset County Council My Staff Shop portal for those who are ineligible for Salary Sacrifice. Non-permanent staff are able to lease a car direct with Knowles Associates subject to personal credit status and/or purchase an ex-lease vehicle. Knowles Associates are able to provide finance for ex-lease purchase vehicles where required, subject to personal credit status.
  • This provision is also available to Council Members.
  • The following over-riding restrictions apply and must all be satisfied for an employee car choice to be approved:
    • In order to comply with national minimum wage (NMW) legislation employees opting to sacrifice salary which would result in their revised (lower) pay being less than the NMW will be unable to join the scheme. An individual in this situation may find they can select a different car which does not result in a breach of the NMW rules but this is not guaranteed.
    • A maximum of two cars may be leased per eligible employee
    • The advised maximum sacrifice under these rules is 25% of notional gross salary (‘basic salary’). Basic salary excludes all benefits, fixed allowances, additional payments, special duty pay, enhanced rates, standby and callout and any other salary sacrifice choices taken. A sacrifice in excess of 25% may be accepted on application only at the discretion of the Strategic Manager – HR Admin and Payroll Services and the employee’s Service Director
  • Employees or nominated drivers under the age of 25 who select a car through the scheme will be charged an additional £200 motor insurance excess on top of the standard £250 excess should a claim be made.
  • Under this scheme each car is individually priced and employees will effectively pay for the use of the car and other monthly fixed costs through payroll via a salary sacrifice arrangement, taking advantage of any existing tax and National Insurance savings delivered through this mechanism.
  • The 'sacrifice' is achieved by varying the employee’s terms and conditions of employment relating to pay. The employee will agree to this “variance” by signing the scheme’s terms and conditions during the ordering process, before joining the scheme.
  • A car salary sacrifice is a P11d benefit and your tax code will be adjusted by HMRC to reflect this.
  • For the period during which the employee’s salary is reduced as a result of the salary sacrifice arrangement the pensionable pay will also be reduced. To find out more about how this scheme will impact your final pension, please contact your pension provider.
  • If the pensionable pay used to work out your pension benefits is reduced it will mean that all of your benefits will be reduced which will include your pension, lump sum retirement grant, spouse’s or partner’s pension plus any lump sum death grant.
  • In the event of redundancy, the redundancy payment will be based on the gross salary prior to any salary sacrifice arrangement.
  • The employee will not be liable for any early termination charges should the car be returned early due to a compulsory redundancy. However, you will be liable for vehicle damage and excess mileage charges, which will be deducted from your final salary.
  • For voluntary redundancies normal early termination charges will apply.
  • The Scheme offers a wide range of cars. Employees will need to make a choice of which car, options and mileage profile is best for them, taking into account their personal circumstances.
  • The scheme cars are subject to a “benefit in kind” tax, which is based on the list price of the car, CO₂ emissions, and will be collected by an adjustment to your tax code by HMRC. The lower the CO₂ emission, the lower the tax and generally the greater the potential saving. Benefit in kind tax rates may be subject to change during the life of the agreement, in accordance with HMRC legislation. Click to view the HMRC website here.
  • Employees are encouraged to consider fuel economy, tax efficiency and environmental impact before selecting their car.
  • Employees may select from the following mileage over a 36 month term:
    • 10,000, 12,000, 15,000, 18,000 or 20,000 miles per annum
  • An important consideration prior to choosing a car is an accurate estimation of annual mileage. This is important because if the mileage limit selected is exceeded, upon the return of the car the employee will be responsible for any charges – per mile - that may arise. Any charges will be deducted from net salary. No credit is given for under-mileages. Further detail surrounding excess mileage charges can be found in section 5.8.
  • Factory ordered accessories or optional extras may be added. Tow bars or roof rails may also be added to the car. Anything added to the car after delivery is payable for in full by the employee from their net pay and requires prior consent from Knowles Associates. Any equipment added to the car must either be left in the car when it is returned or – in the case of equipment added after delivery - removed without causing damage to the car. The employee has no ownership rights over the car or anything attached to it and as such he or she will not share or receive anything from the subsequent sale even where he has paid for something in full.
  • Cherished (Personal) number plates may be added to a scheme car at the employee’s expense, and with the prior approval of Knowles Associates, who continue to own the car for the lease term. At the end of the lease the employee will be responsible for any cost of replacing the original number plates prior to the return of the car. The employee may then retain the personal plates.
  • In order to comply with salary sacrifice guidelines, employees will not be able to make amendments to the car or term once the car is ordered. You may make one contract amendment to your mileage, if you find your actual mileage is more or less than your estimate. The cost of making this amendment is £25 and may affect the amount of your salary sacrifice. Amendments cannot be made in the first 12 months or last 6 months of any contract.
  • If, for example the car is returned with mileage in excess of the contracted mileage the employee will be liable for an excess mileage charge as detailed in the Salary Sacrifice quotation.
  • Cars belong to Knowles Associates for the duration of the lease term and may not be reallocated to another employee by the employee who has entered into the lease agreement. However, the council may be able to reallocate a vehicle to another employee on special terms where such vehicles become available.
  • In the event of leaving Somerset County Council within the lease term, employees will be responsible for an Early Termination payment deducted from final monies due, except where the employee has been made compulsorily redundant. Should employees terminate the agreement early they will also be liable for an Early Termination payment agreement.
  • Fair wear and tear and pro-rata excess mileage payments may also be payable after 6 months of the lease term have elapsed. They will be included automatically within any calculation of a Full Early Termination charge. The penalties payable by the employee is outlined below:

    • YEAR OF TERMINATION

    HIRE PERIOD

    Up to 3 years

    Up to 4 years

    YEAR 1

    5 months rental

    6 months rental

    YEAR 2

    3 months rental

    4 months rental

    YEAR 3

    1 month rental

    2 months rental

    YEAR 4

     

    1 month rental
  • Prior to driving a scheme car for the first time, all employees and nominated drivers must complete a declaration form advising of any endorsements, penalties or convictions. The declaration form will be sent to the employee by the License Bureau on behalf of Knowles Associates. In addition, all employees must advise Knowles Associates immediately of any subsequent endorsements, penalties or convictions. It is the responsibility of the employee to ensure that all other persons permitted to drive the car also comply with this requirement.
  • Employees must immediately notify Knowles Associates of any impending prosecution, both for themselves and for any nominated drivers authorised to drive the car, together with the consequences of prosecution, when known. This applies whether or not a scheme car was being driven at the time of the alleged offence.
  • During the car contract any non-fault driver damage to the car will be claimed through the insurers. Accident claims will be managed by Knowles Associates insurance partner, and the employee should report all claims. The relevant contact number can be found on the SCC Knowles website, My Car, Emergency Numbers.
  • At the end of the contract the car will be collected and returned to Knowles Associates where it will be assessed for any damage. Repairs required for any damage outside of the BVRLA Fair Wear and Tear Guide (the trade body for the vehicle rental and leasing sector) guidelines will be recharged to Somerset County Council who will in turn deduct the amount due from the employee. If your net salary does not cover the outstanding monies, the balance may be recovered from you as a debt.
  • A copy of the BVRLA guidelines can be found here.
    1. Employee logs onto the Knowles Associates website, via the My Staff Shop Benefits Platform and chooses preferred vehicle.

    2. Employee submits order via Knowles Associates website.

    3. Knowles Associates send insurance declaration, key facts form and licence mandate to employee.

    4. Knowles Associates check eligibility with SCC, HR Admin and Payroll.

    5. Knowles Associates run licence check.

    6. If, eligibility, licence and insurance all OK, Knowles Associates place order for vehicle with dealer. If not, employee will be contacted to inform them why they cannot place order.

    7. Dealer contacts employee to check specification for vehicle.

    8. Dealer confirms delivery with Knowles Associates.

    9. Knowles Associates sends details of anticipated delivery to employee.

    10. Dealer confirms delivery with employee.

    11. Employee takes delivery of vehicle.

    12. Knowles Associates send HR Admin & Payroll, payroll and P11d information.

    13. Knowles Associates send HMRC details to employee, it is the employee’s responsibility to send these to HMRC.

    14. HR Admin and Payroll make adjustment to salary and send contractual variation to employee, to start from date of delivery.
  • The car should be returned in a good, clean condition and all repairs should have been arranged to be completed by the driver prior to returning the car. Failure to do this will result in a charge to the employee for any loss or damage. Benefit in Kind (BIK) liability will cease only from the date the car is returned.
  • If the employee has an existing car, the old car under the scheme will be collected on delivery of the new car. If there is no new car to be delivered, the employee should contact Knowles Associates to arrange collection of the old car.
  • An option to purchase the car from Knowles Associates may be available; the price will be established prior to the end of the lease.
  • Service, repairs and MOT tests must be carried out by the relevant manufacturer’s approved franchise garages. The contracted specialist suppliers should be used for tyres, batteries and windscreens, as advised by Knowles Associates maintenance department. Details of what to do in all events are provided in the driver handbook supplied with the car.
  • The car must be maintained in good order both visually and mechanically and must be serviced in line with manufacturers’ recommended schedules. Failure to maintain the car to an acceptable standard may result in its withdrawal or in a charge to the employee for any loss or damage as a result of such failure. Cars may be subject to inspection from time to time by Somerset County Council.
  • Employee responsibilities are to:
    • Maintain oil, water, battery and brake fluid at the correct levels
    • Pay fuel costs and cleaning costs
    • Puncture repairs and non-ordinary wear and tear tyre damage
    • Ensure the car has a regular service in accordance with the manufacturer and Knowles Associates requirements and an MOT certificate where appropriate. Service books should be updated and be kept in the car for inspection purposes.
    • Ensure replacement parts and fittings comply with manufacturer recommendations.
    • Maintain tyre pressures correctly and ensure that there is adequate tread to meet legal requirements.
    • Ensure that all reasonable anti-theft precautions are taken i.e. the car mustbe locked and the alarm must always be set when the car is left unattended, and all valuables removed. Should a car be broken into and the alarm is not set, or valuables not removed, the employee will be personally responsible for the loss and damage.
    • Promptly pay all parking fines and fines resulting from prosecutions, including those incurred on demonstrators or short-term cars. There will be an automatic deduction of £25.00 from monies due to cover administration if the employee does not pay the fine. The employee will still be liable for this fine even if the fine is in dispute.
  • The Council accepts no responsibility for fines or penalties incurred by the employee and all employees are required to settle fines or penalties in accordance with current statutory requirements. The Council will also not assist employees in disputes over fines or traffic offences between drivers and third parties. However the Council does reserve the right to settle penalty notices upon dispute and recover the relevant amount – including administrative fees – from net salary. If your net salary does not cover the outstanding monies, the balance may be recovered from you as a debt.
  • In the event of an accident or breakdown drivers will contact the Knowles Fleet helpline, the number will be provided in the driver information pack.
  • The cost of providing motor insurance is ever increasing and employees are expected to co- operate with all initiatives to contain this escalation, which includes driver-training programs. The Council may carry out post-accident reviews and reserve the right to arrange specific preventative action for an individual. In the case of serious or persistent accidents, this may include the removal of the allocation of a scheme car and may result in the early termination charges referred to in 2.5 above being applied.
  • Prior to undertaking any overseas travel, the employee must have written consent from Knowles Associates and obtain the relevant documentation (VE103). There is an administration fee payable to Knowles Associates for providing the documentation. Detailed guidance on what to do prior to taking a vehicle overseas is available from the Knowles Associates website.
  • Cars provided through work are subject to Benefit in Kind taxation. When choosing a vehicle, you will be provided with details of the benefit based on current HMRC rules. “Green” cars have lower tax implications. You should consider the Benefit in Kind on your tax code, and therefore your pay, as part of the decision-making process.
  • Employees are also reminded that individual taxation is their personal responsibility and, in addition to any reports made by the Council to HMRC, employees should also advise HMRC directly of any changes to their individual benefit entitlement during the year. The Council’s tax reference and HMRC contact is: -
  • PAYE Ref: 794/S1
  • Telephone Number: 0300 200 3300
  • https://www.gov.uk/update-company-car-details
  • Employees must note that any changes to income taxation, Value Added Tax or National Insurance regulations that impact on the costs of the lease of the vehicle to the council will be passed on to the user and a further amendment to the salary sacrifice arrangement will be made.
  • Any change in the salary sacrifice statutory regulations may also affect the benefit in kind if there is no transitional arrangement in the HMRC regulation. SCC will; have no discretion in applying the Statutory rules.
  • For insurance purposes, the use of a scheme car for any purpose other than social, domestic or pleasure and the appointed main driver’s business requirement is expressly prohibited. Fully comprehensive insurance is provided for all drivers of scheme cars. All valuables including briefcases, laptop computers, mobile phones and clothing must be removed from the car or locked in the boot when not attended. Failure to take due care will result in the recharge to the employee for any loss or damage incurred.
  • For personal effects, including money and credit cards, employees are strongly recommended to arrange specific cover, using the relevant section of their home or personal insurance policy.
  • Any driver who is involved in an accident or makes any other insurance claim involving their scheme car will be liable for the insurance excess. The employee to whom the car is allocated at the time of the incident will be charged.
  • Whilst the motor insurance premium is intended to remain fixed for the period of the contract, should an employee receive additional endorsements on their driving licence or submit a number of claims the insurer reserves the right to increase the motor insurance premium. This increase will be payable from net salary and will be deducted automatically following notification of the increase.
  • As standard the current insurance carries an excess as follows:
    • £250 accidental damage excess
    • £450 accidental damage excess for individuals under the age of 25
    • £550 accidental damage excess for individuals under the age of 21
    • Fire & Theft – as above
    • Glass repair – free
    • Glass replacement - £75
  • Any illness, deterioration of health, disability, etc. that may affect an employee’s driving or that of one of their named drivers should be notified to the DVLA and Somerset County Council in writing.
  • Any new convictions resulting in an endorsement to a driver’s licence should be reported to Knowles Associates in order that the insurers can be made aware.
  • N.B. Certain endorsements to a driver’s licence or certain medical conditions may render insurance invalid and in such circumstances a driver may be held personally liable for accident costs/damages where Knowles Associates or DVLA has not been notified.
  • If an employee leaves Somerset County Council, then use of the scheme car shall cease on the final day of employment. The employee may be offered the option to purchase the car from Knowles Associates, with a price established at that time. There is no guarantee any offer will be made, and neither can the employee demand such an offer. The employee is responsible for arranging for the return of the car. The car should be returned in a good, clean condition and all repairs should have been arranged to be completed by the driver prior to returning the car.
  • Benefit in Kind liability will cease only from the date the car is returned.
  • An inspection check will be carried out and any unreported damage or excessive wear and tear will be recharged to the employee.
  • Somerset County Council reserves the right to withdraw the provision of a scheme car if an employee:
    • has not adhered to the policy or operating procedures
    • is convicted of any motoring offence carrying a penalty of more than 3 points
    • is involved in what Somerset County Council deems to be an unacceptable number of accidents
    • has their contract terminated for gross misconduct
    • has his/her licence – or that of a named driver - revoked
    • is responsible, for any reason, of serious misconduct as may be determined by Somerset County Council from time to time.
  • In these cases, the employee would be liable for any Early Termination charge, payable from their net pay.
  • The employee may be responsible for the payment of any Excess Mileage charge which may arise when the car is returned. If the mileage on return of the car is greater than the pro-rata contract mileage, then Knowles Associates may levy an excess mileage charge. This will be calculated by multiplying the relevant excess mileage charge detailed in the original schedule for the car by the number of miles covered above the pro-rata contract mileage at the point of return. If your net salary does not cover the outstanding monies, the balance may be recovered from you as a debt. Any amount will be deducted from your net pay. If your net salary does not cover the outstanding monies, the balance may be recovered from you as a debt. Any under mileage will not be credited.
  • As at 1st November 2020, the excess mileage charges are:

    • For engine size under 1600cc 4p per mile
    For engine size 1601cc and above 5p mile
  • If you’re planning to take maternity/adoption leave then you should consider carefully whether this scheme is appropriate for you before you join. Factors you may wish to consider are:
    • Participating in the Scheme could reduce the amount of Statutory Maternity/Adoption Pay (SMP) that you’re entitled to. If you’re eligible for Contractual Maternity/Adoption Pay then this won’t affect you unless you leave the Council during your maternity leave.
    • Whether you might want to return to work on a part-time basis and therefore will have a lower salary – your salary sacrifice for your scheme car will remain the same even if you do return part-time.
    • Deductions from salary will continue during your period of maternity leave whilst sufficient income is being paid to leave the employee the minimum of the prevailing rate of the Statutory Maternity/Adoption Pay.
  • Based upon your individual circumstances, the Council reserves the right to refuse you entrance to the scheme until such time as you are able to fully meet the salary deductions that would be required in accordance with the scheme.
  • On return to paid work, you will then resume the lease payments for the remainder of the term. If your term expires during maternity leave, you will be required to return the vehicle to Knowles Associates in accordance with your terms of conditions. Enrolling for a new vehicle after you have proceeded on Ordinary Maternity Leave and Additional Maternity Leave will not be possible until you return back to paid work.
  • If you decide to leave the Council during or at the end of maternity you will be expected to pay the early termination of the vehicle dependent on the contract period you are currently in (See Early Termination section for more information)
  • Any illness, deterioration of health, disability, etc. that may affect your driving or that of one of your named drivers should be notified to the DVLA and HR should be advised in writing of the outcome.
  • If you do take long-term sick leave during the period of lease then your salary sacrifice arrangement will remain in place, as long as your salary is sufficient to allow the salary reduction required. You won’t be required to make any contributions during any period of zero pay.
  • If your term expires during long-term sick leave, you will be required to return the vehicle to Knowles Associates in accordance with your terms of conditions. Enrolling for a new vehicle whilst on unpaid sick leave will not be possible until you return back to paid work.
  • If you were to subsequently leave the Council, the Council would reserve the right to seek recovery of the amount owed including any early termination fee and/or damage as required.
  • We recommend that you set your mileage and term to an accurate level. If your circumstances have changed during the contract, changes to contracted mileage can be applied, however an admin fee of £25 will be deducted via payroll. Please note a maximum of one contract amendment can be made over the life of the contract.
  • Please note amendments cannot be made in the first 12 months or last 6 months of any contract.
    • Comply with all road traffic rules, laws and the Highway Code.
    • Drivers are personally liable for any traffic or parking offence, payment of fines and court attendance, and payment of the congestion charge if applicable.
    • Ensure that when handing in an existing car it is clean both inside and out. If a valet is required on return of the car, the employee may be recharged for the cost of a full valet deducted from monies due. If your net salary does not cover the outstanding monies, the balance may be recovered from you as a debt.
    • Immediately notify Knowles Associates of any accident or impending prosecution, both of the employee and any approved nominated drivers, together with the consequences of prosecution.
    • Smoking in a scheme car is strictly prohibited (see details of the legislative requirements in Section 6)
    • Do not use or allow any car to be used for the purpose of racing, rallying or any form of competition, pace making, reliability trials, speed testing, towing or driving tuition
    • Do not allow any car to be driven by any person who does not hold a full valid UK, European Union or International driving licence
    • Do not convert, modify or alter or attempt to convert, modify or alter any car without the prior written consent of Knowles Associates
    • Do not load or use any car in contravention of the manufacturer's recommendations, including in respect of payload or axle weights
    • Do not disconnect or tamper or attempt to disconnect or tamper with the odometer
    • Do not affix any sign, letter or advertisement or other livery to any car without Knowles Associates prior written consent
    • Failure to comply with any aspect of the scheme may lead to disciplinary action and may further lead to dismissal.
    • Claim the correct lease mileage rate when undertaking mileage on Council business
    • Notify Somerset County Council of any change in their home address and/or the usual overnight location of the car
  • a. The Law
  • As cars obtained through the scheme are deemed to be company cars, they are considered to be workplaces and therefore classed as ‘no smoking’ premises. It is therefore a punishable offence to:
    • smoke in a car classed as a no-smoking premises
    • permit someone else to smoke in that car
    • fail to display appropriate warning notices (which are provided on delivery of the car) in cars covered by the legislation
  • b. The Penalties
  • Non-compliance will be deemed a criminal offence and individuals could be fined a £50 fixed penalty or face a fine of up to £200 and a criminal conviction if taken to court for smoking (or allowing smoking) in a smoke-free car. Any such fines will automatically be deducted from monies due to the employee, along with any associated direct costs incurred, from net pay.
  • It is the responsibility of the employee to ensure that all other persons permitted to drive or travel in the car also comply with this requirement and because of the potential adverse impact on Somerset County Council failure to do so may be subject to disciplinary action.
  • a. The Law
  • It is illegal for a driver to use a hand-held mobile phone or similar device while they are in a car with the engine running. This includes waiting at traffic lights or when stuck in traffic. The one exception to the rule is when a driver uses their mobile to call emergency services.
  • Even if the phone is fitted with a remote earpiece or speaker phone and microphone, it is illegal to hold the mobile while dialling a number or answering a call. Pushing buttons is allowed but the phone should be mounted in a cradle on the dashboard. However, if it is proven that this contributed to an accident it may still result in prosecution.
  • Employees should be aware that the SCC H&S Policy Driving for Work does not allow the use of hands-free mobile phones and Bluetooth technology, except when the employee has received specific written authority from the employee’s Director, by completing and signing form HS F14b. whilst hands-free devices are safer than hand-held devices, both have an adverse effect on a driver’s attention.
  • b. The Penalties
  • The usual penalty for motorists caught using a handheld mobile phone or similar device while driving is currently a fixed penalty notice of £60 plus three penalty points. However, the police do have the option of prosecuting through the courts. There is a normally a maximum £1,000 fine, and a possible disqualification from driving irrespective of the number of points on the driving licence.
  • Drivers face the same penalty if they do not have proper control of a car; for instance if they are distracted by using a mobile phone – even if a hands-free device.
  • Any fines are the sole responsibility of the employee.
  • Under no circumstances should anyone driving a scheme car use a hand-held phone to make or receive calls or text messages whilst driving.
  • Deliberate failure by an employee (or their spouse, partner or named driver) to comply with the rules of the scheme will result in disciplinary action against the employee which could lead to sanctions up to and including dismissal.
  • SCC My New Car Frequently Asked Questions
  • http://extranet.somerset.gov.uk/hr/pay-and-reward/benefits/my-new-car/
  • HMRC rules on company cars
  • https://www.gov.uk/tax-company-benefits
  • SCC Health & Safety – Driving for Work (HS 014)
  • http://extranet.somerset.gov.uk/health-and-safety/policies-forms/
  • My Staff Shop/My Flexible Benefits – for log on to Knowles Associates
  • https://somerset.mystaffshop.co.uk/