Driver Information Pack Audi Company Car Alternative (CCA) 1
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Content Information General 4
Welcome to the Audi Company Car Alternative (CCA) scheme. We have gathered together some of the more Frequently Asked Questions (FAQ’s) to help you understand your new CCA scheme. In order to make this guide more reader friendly, we have grouped the questions into sections.
Financial 6 Operational 9 Personal 12 Ordering
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Contract 16 Contact
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We hope you find this a useful guide, there is additional contact details at the end of this document if you have any unanswered questions.
Helpdesk: 0161 826 4164 Email: audicca@carbenefitsolutions.co.uk Website: www.audicca.co.uk
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General information What is the Company Car Alternative (CCA) Scheme? The Audi CCA scheme enables existing eligible Company Car drivers to own their own car, with the look and feel of a Company Car but without the associated tax costs. Your company has recognised the CCA scheme as an opportunity to deliver cost savings for you and your employer, whilst continuing to operate within the appropriate guidance from Her Majesty’s Revenue and Customs (HMRC). Can anyone join the scheme? Your company will determine who is eligible to participate in the scheme and invite these employees to join. Why do I not pay Company Car Tax on the scheme? Under the Audi CCA scheme the car is sold to you under the terms of a Credit Sale Agreement (CSA) with title and legal ownership of the car passing to you on date of CSA signing, at this point the car is no longer a Company Car and all associated tax liabilities are removed on delivery of the scheme vehicle. How will the new scheme work? The quotation for this vehicle is processed via the appointed on-site Scheme Co-ordinator. Upon driver acceptance, Car Benefit Solutions (CBS) will issue the contractual documents (Credit Sale Agreement, Interest Free Loan, Car Benefit Loan and Payroll Instruction Form as may apply) for signature. Documents for the scheme vehicle must be signed BEFORE delivery of the vehicle. Scheme vehicles do not attract Company Car Tax but you will normally be required to make a contribution towards your scheme vehicle (and fuel benefit if applicable) from your net pay. For the avoidance of doubt, these amounts will be instead of the Company Car Tax you previously paid and not in addition to.
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Financial information What is a Credit Sale Agreement? A Credit Sale Agreement (CSA) is a loan agreement regulated by the Consumer Credit Act. Unlike other financing arrangements, a CSA passes title and legal ownership to you on signature date of the CSA.
What is a Car Benefit Loan (CBL)? Depending on the structure of your car scheme agreed with your employer you may or may not have a CBL. This is a loan facility between your employer and you for the purpose of capturing all cost components of the scheme operation such as motor insurance, fuel, servicing, tyres etc. The loan is settled annually by a deduction from net pay, you will receive an allowance from the company which covers the cost of the loan deduction and any associated Tax and NIC. The CBL and settlement ensure all Tax and NIC due is settled via payroll in accordance with HMRC requirements.
What is a Interest Free Loan (IFL)? Depending on the structure of your car scheme agreed with your employer you may or may not have an IFL. This is a loan facility of up to ÂŁ10,000 which is used as an advance payment/deposit to reduce the amount of credit in the CSA and thereby lowering the vehicle monthly repayments. The loan is interest free to you, the employee, under prevailing tax rules.
Will I be credit checked when I place an order for my car? No, a credit reference agency check will not be carried out, however we still need to assess your credit worthiness in accordance with Financial Conduct Authority regulations which is achieved through eligibility criteria set out by your employer and the scheme rules. Employees who are currently bankrupt or serving an Individual Voluntary Arrangement (IVA) will be excluded from participating in the scheme and will retain a traditional company car as they are unable to enter into credit agreements under the terms of their bankruptcy.
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Will my credit rating be affected by the scheme? This is unlikely as the CSA is not reported to a credit reference agency. You should always declare your CSA to other credit providers should they request it and in such circumstances, upon request, employees will be supplied with a letter explaining how the Audi CCA scheme works, their personal liabilities under the scheme and that the monthly costs are normally less than the Company Car Tax paid previously.
Can I retain my vehicle at the end of the contract? Yes, the car is yours from the date of delivery. You can settle the final balloon payment under the CSA and keep the car or alternatively sell the car back to CBS for the amount of the Guaranteed Residual Value, which is equal to and can be offset against the final balloon payment. This may be preferable if you are taking delivery of a new scheme vehicle.
Can I sell my scheme vehicle? Yes, you can sell your car at any time, however you are required under the terms of the CSA to offer the car to CBS in the first instance. The amount CBS will pay you will be lower than the market value of the car or the original cash price. This is to prevent you incurring a taxable liability.
When do I make my first repayment? Your first repayment will be collected from your salary the month after the car has been delivered. For example, if your car is delivered on the 10th of June, your first payment will be collected from the date you are paid in July.
When do I make my last repayment? Your last repayment on a scheme car will take place in the month the final balloon payment is due, or in the month you return your vehicle, should you decide to do so. All repayments are for full months only, no part-month repayments will apply.
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Operational details How will motor insurance work? You will be covered under your employer’s fleet policy. The cost of the insurance benefit will either be processed through your CBL, if applicable, or reported on your P11D.
Who will be covered under the insurance? These arrangements will remain the same as with your outgoing company car policy.
Can my scheme car be used for demonstration purposes by the business? Your employer may request from time to time that your car is used for demonstration purposes for which you can give your permission. If you require a temporary vehicle whilst your car is being used for demo purposes, your monthly CSA repayments includes consideration for this.
What are the rules around acceptable vehicle return condition? It is imperative that scheme vehicles are returned in a condition commensurate with their age and mileage. As such, employees intending to exercise the repurchase option will be expected to arrange for the repair of any damage or replacement of any missing items prior to the end of contract. Guidance on return vehicle conditions can be found in the document “Your Guide to Fair Wear & Tear” which is available on the website www.audicca.co.uk
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Personal information What and when should I tell the Inland Revenue about my change in circumstances? You should inform the Inland Revenue that you no longer have a company car (and private fuel benefit if applicable) on the day you take delivery of your initial scheme vehicle. We suggest that you do this both by telephone and follow up with written correspondence for completeness, remembering to retain a copy for your records. Contact details for your local HMRC office should be available from your latest Notice of Coding statement. Your employer will notify HMRC that you no longer have a company car via the P46 (cars) reporting process, this may take up to four months.
How will fixed penalty and moving traffic fines be managed? These will be administered by CBS or your employer depending on who the Registered Keeper is. Penalties and fines will be redirected to you if this is possible for you to settle, where this is not possible, CBS will settle the amount payable on your behalf and will be collected from your next salary run.
As it is my car, can I claim tax relief for my business miles costs? If, as part of your scheme, you use a CBL then you will receive an annual statement from CBS advising you of the amount of any tax relief claim that you can make. If you do not have a CBL then please refer to the following guidance with regard to making a claim for tax relief for using your own car for business use. https://www.gov.uk/tax-relief-for-employees/business-mileage-fuel-costs
How will fuel work? The company policy regarding fuel management and reimbursement will be outlined by your Scheme Co-ordinator.
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Will I be required to keep mileage records? Yes. It is essential to retain mileage records for business travel to ensure you are receiving the appropriate tax relief that is available. You may also be required to keep private mileage records depending on how fuel is paid for and reimbursed. Your Scheme Co-ordinator will advise you of this.
What happens if I leave this employment? Should you leave this employment, either under your own volition or not, you can either settle the outstanding loan balance and keep the car, or exercise your option requiring CBS to purchase the car back from you for a value which, subject to the vehicle’s condition, should be sufficient to extinguish any outstanding liability under your loan agreement.
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How do I get my new car? Your Scheme Co-ordinator will hold ultimate responsibility for completing formal quotations and ordering your vehicle. Once you have accepted the quotation, the order will be placed on the system at CBS. Thereafter, all contractual documentation is sent to you for signature. This must be completed BEFORE you take delivery of the vehicle.
Do I need to get authorisation before ordering my car? Yes. This can be sought from your Scheme Co-ordinator who will authorise your car choice and optional equipment.
How do I get a quote for a vehicle I’m interested in? The on site Scheme Co-ordinator will generate all quotes on behalf of drivers.
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Contract information How long do I keep my scheme car? The contract term for the Audi CCA scheme is 6 months. It is possible to terminate your CSA prior to the contract term subject to agreement with your Scheme Co-ordinator.
What is the contract mileage? The contract mileage is 10,000 within the 6 month term.
What happens if I reach the contract mileage before the 6 months term is completed? If you believe that you will reach the contract mileage before the expiry of the 6 month term then you should contact your Scheme Co-ordinator for advice on the options available to you.
What happens if my new car isn’t ready by the time my contract expires? Your CSA features an automatic 1 month extension period should this be required. However, drivers should always endeavour to order their next vehicle in good time when considering delivery lead times.
What are the arrangements around potential maintenance events? Scheme vehicles should not require any scheduled maintenance. In the unlikely event that any work is required, this should be agreed with your Scheme Co-ordinator and if applicable captured in your CBL or declared on your P11D.
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Contact details Head of CCA Elise Broderick Email: ebroderick@carbenefitsolutions.co.uk Tel: 07964 880511
North Regional Manager James Mackintosh 07780 445900 jmackintosh@carbenefitsolutions.co.uk Operations Manager Jacqueline Cremin 07766 004499 jcremin@carbenefitsolutions.co.uk
CBS Contacts David Mulqueeney Driver Development Executive 0161 826 4164 dmulqueeney@carbenefitsolutions.co.uk Stephanie Rees Driver Development Executive 0161 826 4180 srees@carbenefitsolutions.co.uk Altaf Ibrahim Driver Development Executive 0161 826 4171 aibrahim@carbenefitsolutions.co.uk Jessica Livesey Driver Development Executive 0161 826 4145 jlivesey@carbenefitsolutions.co.uk
West Regional Manager Andrew Sweeney 07825 518953 asweeney@carbenefitsolutions.co.uk Operations Manager Sophie Jackson 07342 882711 sjackson@carbenefitsolutions.co.uk
East
Regional Manager Cy Wilson 07769 173427 cwilson@carbenefitsolutions.co.uk Operations Manager TBC Please Contact Jacqueline Cremin 07766 004499 jcremin@carbenefitsolutions.co.uk
South
Regional Manager Mark Ridley 07798 758949 mridley@carbenefitsolutions.co.uk Operations Manager Mike Unsworth 07776 444842 munsworth@carbenefitsolutions.co.uk
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Audi Company Car Alternative (CCA) Car Benefit Solutions, The Barracks, 400 Bolton Road, Bury, BL8 2DA Helpdesk: 0161 826 4164 Email: audicca@carbenefitsolutions.co.uk Website: www.audiacca.co.uk
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Ref:L05 - 05/04/16