Car Scheme Frequently Asked Questions

Other conditions

 

21. How is the net cost of the agreement calculated?

You contract to reduce your salary by an amount equivalent to the cost to the University of leasing the car from ALD Automotive plus the cost of the University insuring the vehicle. Since your salary is reduced you will pay less tax and national insurance but since the car is being provided to you by the University there will be a taxable benefit based on the list price of the vehicle, its fuel type and CO2 emissions. Therefore the net cost to you is the salary forgone less the reduced tax and NI charge, plus the tax due on the taxable benefit associated with the vehicle. You can calculate this by using the Salary Exchange Calculator 

22. Why will I receive a P11D?

The University car is made available to you under a salary exchange arrangement whereby in return for you agreeing to receive a lower salary the University provides you with a car. The car is a “company car” for tax purposes and the University is required by law to advise HMRC that it has made the car available to you. Since the car is a benefit in kind, tax law also requires that you are notified annually on a P11D of the amount of the taxable benefit.

The University submits information about Benefits in Kind to HMRC on P11D forms in July each year.  HMRC use this information to adjust tax codes and in our experience, they have often not done this until the following autumn, so you may find that any additional tax due as a result of these changes is not paid until much later in the tax year.  Unfortunately, this is beyond the control of the University.

23. Why am I not entitled to the University’s standard reimbursement for mileage?

The car is “owned” by the University and is a “company car” for tax purposes. HMRC specify the maximum mileage rate that can be claimed (without an associated tax benefit), which relates solely to reimbursement of fuel costs and is calculated in relation to the engine capacity and type of fuel used by the car. See the HMRC website for further details.

24. Will the amount of my salary exchange be increased or decreased if the rate of VAT charged on the lease payment made by the University to ALD Automotive changes?

Yes. The terms and conditions under which the University makes the vehicles available to staff include a provision to amend the salary exchanged as a result of statutory changes, including VAT rate changes.  If VAT rates change then HR will write to you and inform you of the revised amounts. 

 

25. I do not pay national insurance (NI) because I hold an age exemption certificate. Does that affect the net cost to me?

Yes. As you do not pay NI there can be no NI saving as a result of exchanging salary. You will still save on income tax but you will need to ensure that the car benefit tax doesn’t make the scheme too expensive in your circumstances.

 

26. I am a member of the NHS Pension Scheme. What are the implications to me?

The administrators of the NHS Pension scheme have not agreed that an employee’s ‘notional gross salary’ can be used to calculate pension benefits and so employees in the NHS Pension Scheme would therefore be disadvantaged by exchanging salary for a car.

27. I am currently on long term sick leave and am now on nil pay. Do I have to return the car?

No you do not. The provision of the car continues during any period of sick pay and you will retain use of the vehicle during this period. Salary exchange will continue to apply during any period of sick leave at full or half pay. As you are now on sick leave at nil pay, the term of the salary exchange (but not the use of the vehicle) will be extended for a period equal to the period of unpaid leave to facilitate collections of amounts due under this arrangement at the rate prevailing immediately prior to the commencement of the unpaid leave.

 

28. I have received points on my licence for speeding. Do I need to tell anyone?

You must advise the University Car Scheme Administrator immediately and in writing, with supporting documentary evidence, of any points or endorsements on your driving licence or of any suspension or revocation of your driving licence.

29. How do I book a service?

All aspects of service, maintenance, repair and breakdown can be arranged via ALD Automotive on 01604 747046 Option 2, which provides support for you and your vehicle and is open 24 hours a day, 365 days a year.

 

30. I have broken down. Who do I need to contact?

All aspects of service, maintenance, repair and breakdown can be arranged via ALD Automotive on 01604 747046 Option 2, which provides support for you and your vehicle 24 hours a day, 365 days a year.  In the event of a vehicle breakdown due to mechanical failure, it is important that you follow the correct procedure which can be found on the ALD website under 'In Life - Breakdown'.

 

31. I have had an accident. Who should I inform?

If the car is stolen, damaged or an accident occurs involving the car, then you must contact the University of Exeter Insurance Office at the earliest opportunity. You must provide full details of any accident and comply with any instructions arising from any accident, claim or proceedings. In order to report an accident with regards to your car you should contact the Fleet desk on 01604 747046 option 2, which links all aspects of Fleet Services, and is open 24 hours a day, 365 days a year.

 

32. I am planning on travelling abroad on holiday. Can I take my car?

Yes you can. Employees wishing to take their vehicle aboard will need to obtain a VE103 document by contacting ALD Automotive at least 5 working days prior to travel on 01604 747046 Option 2. This acts as a substitution for the V5 registration document 

You must also contact the University of Exeter Insurance Office prior to taking the vehicle abroad to confirm that the University fleet insurance policy will provide cover. In most circumstances, there should be no charge for foreign use; however, the insurer reserves the right to make a separate charge, payable by the employee, for using the vehicle in certain countries. The Insurance Office will forward a temporary certificate of insurance and European accident report for the trip. The certificate of insurance must be returned to the Insurance Office within two working days of the employee returning to work after the return to the UK. It is the responsibility of the employee to ensure that all drivers comply with local laws when driving abroad.

 

33. I have a puncture. Do I need to pay for a new tyre?

ALD Automotive will pay for any replacement tyres due to faulty manufacturing, fair wear and tear or non-repairable punctures. Accidental damage to tyres, including, but not limited to, a vehicle hitting some debris on a motorway or a small bulge on the sidewall will also be covered. Any replacement tyres due to own fault accident, malicious or vandal damage or driver abuse such as, but not limited to, wheel spinning, kerbing or driving upon a punctured tyre that renders the tyre irreparable will be recharged to the driver in accordance with the normal contractual terms between the University and ALD Automotive. The University will recover the cost by deduction from your net pay. Alternatively, the employee can arrange for a tyre to be replaced themselves as long as it is of a comparable standard.

 

34. What happens if I get a parking ticket?

If you receive a parking ticket you should pay it within the date stated. If you do not and a reminder or caution is issued to ALD Automotive, then they will forward this on to you. Where ALD Automotive has met these fines and seeks to recover the additional cost and any administrative charges levied by ALD Automotive from the University, the University will recover the full amount (including the administrative charges) from you by deduction from your net pay.

 

35. How do I obtain new tax discs?

Tax discs are issued mid month prior to expiry and will be sent by ALD Automotive direct to the employee’s home address. It is your responsibility to ensure that the valid tax disc is displayed as appropriate.

 

36. The scheme states that the vehicle needs to be returned in fair wear and tear condition. What does this mean?

It is understood that a vehicle that is two or three years old will not be in showroom condition and ALD Automotive applies the BVRLA (British Vehicle Rental & Leasing Association) Guide to Fair Wear and Tear. The aim of the guide is to provide an industry-wide, accepted standard that defines fair wear and tear on passenger vehicles and light commercial vehicles when they are returned at the end of a contract or finance agreement.

37. My mileage is greater than I originally anticipated. What do I need to do?

If you go over the agreed mileage you pay an additional pence per mile fee which is payable at the end of the contract. The pence per mile rate is calculated individually for each vehicle and is shown on your order confirmation from ALD Automotive.  If there is a change in your personal circumstances and you are aware that you will be increasing your mileage on an ongoing basis you can contact ALD Automotive and agree a variation of contract. This will have an effect on the cost of the vehicle to the University and on the salary exchange required. You can vary your mileage as needed, up to 6 months before the end of the lease.