Agenda for Change Handbook relating to Lease Cars update

Section 17: Mileage allowances1

Lease cars

17.4 The rate of reimbursement in paragraph 1 in Annex L will apply if an employee unreasonably declines the employers' offer of a lease car.

17.5 In determining reasonableness the employer and employee should seek to reach a joint agreement as to whether a lease car is appropriate and the time frame by which the new arrangements will apply. All the relevant circumstances of the employee and employer will be considered including an employee's personal need for a particular type of car and the employers' need to provide a cost effective option for business travel.

17.6 If the employee's circumstances subsequently change the original decision will be reviewed. The agreed principles underlying local lease car policies are in Annex M.

Annex M

Lease car policies

1. Local lease car schemes should take into account the following principles:

i. the scheme is voluntary and is offered to eligible employees;
ii. employees shall be charged the full cost for private use.
iii. schemes should provide for lease cars to be accepted on the basis of business only use or a combination of business and private use. Where cars are accepted for business use only these cars should be classed as "pool" cars.