SHEFFIELD HALLAM UNIVERSITY STAFF EXPENSES POLICY MARCH 2015

Transcription

1 SHEFFIELD HALLAM UNIVERSITY STAFF EXPENSES POLICY MARCH 2015 Owner: Louise Walsh Version number: 1.1 Last revised date: (Minor changes) Next revised date:

2 Contents 1 Introduction Purpose Application of the Staff Expenses Policy Casual staff Associate lecturers Other individuals Compliance Business need and value for money Freedom of Information Expense claim procedure and authorisation Authorisation Expense claim process month submission rule Receipts Purchases on behalf of non-shu staff Staff advance of expenses Tax treatment of expenditure Overview Taxable benefits Tax treatment of Business/Corporate entertaining Tax treatment of staff entertaining and staff events Working lunches Staff travel University Travel Policy UK Travel Private vehicle mileage Inter-campus travel Travel from Home to the University Car hire Fuel Car parking Fines - car parking, traffic violations and other associated fines

3 5.2.8 Tolls Rail travel Taxis International travel Air travel Airport lounges Vaccinations Accommodation Staying with friends Subsistence Gratuities Telephone calls and internet access Incidental overnight expenses Round sum allowances Spouse travel Foreign currency translation Events, entertaining and hospitality Business/corporate entertaining Staff entertaining and events Other staff expenditure Professional and personal subscriptions Uniforms Business gifts Gift vouchers Publications/newspapers/magazines Course and conference fees IT equipment (laptops, mobile phones etc) Business telephone calls

4 1 Introduction The University's purchasing and payments procedures are in place to enable the majority of non-pay supplies to be procured through the purchase order system without members of staff having to incur any personal expense. Wherever possible staff holding a University Purchase Card should use this facility rather than claim expenses. Purchases made using purchase cards are subject to the same rules on appropriate expenditure as set out in sections 4-7. On occasion staff, students or visitors may incur expenses, most often in relation to travel. Staff claiming travel related expenses should also refer to the University Travel Policy. The University's Financial Regulations permit reimbursement of expenses provided reimbursement is claimed within 3 months of the date the expenditure was incurred. 2 Purpose 2.1 Application of the Staff Expenses Policy This document sets out the University's Expenses Policy for staff claiming reimbursement of travel, subsistence and other expenses in connection with University business. The purpose of this policy is to set out the expense procedures which must be followed to ensure that appropriate business expenditure may be reclaimed by employees Casual staff The expenses policy is applicable to all staff, however casual staff cannot claim a staff advance of expenses. See sections 5 and 6 for guidance on what can and cannot be claimed Associate lecturers For the purposes of this policy, associate lecturers are treated in the same way as other members of staff. As such, commuting between home and the University will not be reimbursed Other individuals External individuals including students should refer to the External Individual Expenses Policy on the Finance Intranet. Specialist Visiting Lecturers (SVLs) and External Examiners (EE) should refer to the Regulations for paying SVLs/EE on the Finance Intranet. 4

5 2.2 Compliance Failure to comply with the Expenses Policy may result in refusal to reimburse business expenditure incurred and could result in disciplinary action under the University's Problem Resolution Framework. 2.3 Business need and value for money Sections of the Financial Regulations relate to staff expenses and set out the principles to be applied when staff incur expenditure on behalf of the University: that there is a legitimate business reason for the expenditure; that the expenditure represents a balance of economy, efficiency and effectiveness and therefore that value for money has been considered; that the intended purchase is not likely to give rise to a tax compliance risk (see section 4 of this Policy). 2.4 Freedom of Information Staff should be aware that under the Freedom of Information Act 2000, the University must disclose details of submitted expense claims. 3 Expense claim procedure and authorisation 3.1 Authorisation All expense claims and advances will be payable subject to checking and authorisation by the Finance Directorate. Where claims appear unreasonable or are not in accordance with the Financial Regulations or Expenses Policy, claims will not be paid. The claimant is responsible for ensuring that: that the claim is in accordance with the Financial Regulations, University Travel Policy and the Expenses Policy; and the amounts are reasonable and represent value for money; and scanned receipts are provided; and nominal and activity codes are provided. Budget holders can receive access to details regarding claims charged to their budget on a monthly basis. Should the budget holder decide that expenditure was charged to their budget inappropriately the claimant will be asked to provide an alternative activity code or repay the claim. If appropriate, action under the University's problem resolution framework may be taken. 3.2 Expense claim process Employees must reclaim the cost of business expenditure using the Core Portal. Please refer to the Finance Intranet for details of how to claim reimbursement of staff expenses. Claims that have not been correctly completed or do not adhere to the 5

6 policy will not be paid and, if appropriate action under the University's problem resolution framework may be taken month submission rule Expense claims must be submitted within 3 months of the expenditure being incurred otherwise the claim will be rejected (Financial Regulation, Section 32) except in exceptional circumstances. 3.4 Receipts All claims must be supported by receipts (with the exception of mileage and in rare instances where receipts are not available) in order for payments to be made. The receipts should be submitted electronically via the Core Portal expenses system (i.e. as a scanned attachment or photo). Failure to attach receipts, or if the attached receipt is not legible will mean that the claim may be rejected. The receipt must show an itemised list of the items purchased, therefore card payment receipts or statements are not acceptable. 3.5 Purchases on behalf of non-shu staff Staff will not be reimbursed for items paid on behalf of non-shu staff, (except for when associated with business entertaining for example) as it can be costly and time consuming to recover these costs from a third party. 3.6 Staff advance of expenses The University provides a facility where, under certain circumstances, a cash advance can be given to members of staff (with the exception of casual staff) to cover significant anticipated expenses. It is still necessary to obtain receipts to validate any payment made. The process for requesting and balancing an advance is available on the Finance Intranet. 4 Tax treatment of expenditure 4.1 Overview Expenses incurred by individuals which are reimbursed by their employer are subject to Income Tax for the employee and National Insurance Contributions (NIC) for both the employer and employee. However, the University has a dispensation granted by HM Revenue and Customs (HMRC) which allows certain business-related travel and other expenses to be treated as non-taxable, provided that the expenses are incurred wholly, exclusively and necessarily in the performance of the employee's duties. This dispensation covers: 6

7 travelling expenses in the performance of duties (excluding travel from home to normal place of work) entertaining external stakeholders where there is a business purpose (see 4.3) business telephone calls sundry business expenses where items purchased become the property of SHU or are used wholly, exclusively and necessarily in the performance of duties (e.g. stationery) staff uniforms The University also has an agreement with HMRC which allows the University to settle tax or National Insurance Contributions on behalf of employees which would be payable on some limited items such as employee entertaining. 4.2 Taxable benefits Any items reimbursed which are not covered by the dispensations in 4.1 may be a taxable benefit under the HMRC rules. The employee will then either have to pay tax and National Insurance through their pay or the amount will be included on their "P11D". A P11D form is used by the University to report certain benefits and expenses not paid through the payroll to the HMRC. If the amount is included on the P11D and tax is due, tax may be recovered by the HMRC by changing your tax code or through self-assessment. 4.3 Tax treatment of Business/Corporate entertaining The University allows members of staff to entertain external stakeholders, where the stakeholder is an external adviser, outside student, sponsor or colleague from an external organisation involved in collaborative work, and where the prime object of the entertainment is to discuss a particular business project, foster new business or to continue existing business contacts. "Entertainment" covers food, drink or other hospitality. HMRC are likely to consider that such expenses will normally not have tax or NI implications for employees if the purpose was to maintain an existing business connection or to form a new one, even though no business was actually done. HMRC often assess the legitimacy of business entertainment by reviewing whether the ratio of staff to stakeholders appears reasonable. Where there are no business guests present, the expenditure is treated as staff entertaining (see section 4.4). Entertainment of business acquaintances will not count as business-related if its purpose is social, even if there s some discussion of business topics in the course of the entertainment. This will be treated as staff entertaining (see section 4.4). 7

8 The University is required to collect data on who attends an event for Corporation and Income Tax purposes, so when claiming for business entertainment expenses, a list must be provided stating who attended the event and the purpose of the event.. Business entertaining should be coded to nominal 7111 "Business Entertaining" so that spend can be captured and reported to HMRC. 8

9 4.4 Tax treatment of staff entertaining and staff events Where entertaining is for employees only, there may be an Income Tax and National Insurance (NIC) implication for the employees. However the University has agreed with HMRC that it will pay these costs of behalf of the employee if appropriate information is provided, via a PAYE Settlement Agreement ("PSA"). A description of the event, along with a full list of attendees must be provided with all claims. Staff entertaining should be coded to nominal 7112 "Staff Entertaining" so that the expenditure can be identified and included on the PSA. Where the primary purpose of the event is to reward or incentivise staff, this will be classed as staff entertaining and the costs should be reported on the PSA. Where there is an incidental element of non-business entertaining, for example, a meal after the event or during the course of the event, this will also not generally be considered taxable and any costs should be coded to nominal 7111 "Business Entertaining". Staff away days for the purposes of a briefing, training or a conference are generally not considered taxable. Any claim for costs incurred for a training or conference event should be clearly marked as such to allow the correct nominal coding allocation. 4.5 Working lunches Working lunches held at onsite catering outlets are not taxable, however those held at external premises near your normal place of work may be a taxable benefit. If there are external stakeholders attending, see 4.3, otherwise see Staff travel 5.1 University Travel Policy The University Travel Policy details the principles to be applied in organising, authorising and undertaking travel. This policy should be referred to alongside the Expenses Policy when planning travel. All claims for travel must be by the most economical route and method with the lowest logical fare. 5.2 UK Travel Private vehicle mileage Only genuine business mileage will be reimbursed. Mileage from home will not be paid if a member of staff travels from home to work and then onto a third destination. Car mileage of up to 10,000 business miles in any tax year can be claimed at 45p per mile. Any mileage over 10,000 miles should be claimed at 25p per mile. It is the 9

10 employee's responsibility to record cumulative mileage. These rates are set by the University and are the maximum tax exempt limits permitted by HMRC. Any claims above these rates or claims at the higher rate once the 10,000 limit has been exceeded will be subject to tax. For mopeds, motor cycles and three-wheel vehicles a flat rate mileage rate of 24p per mile can be claimed. For bicycles, the flat rate is 20p per mile. When possible, cars should be shared if two or more members of staff are travelling on similar routes at similar times. Private vehicles must be insured for business use. It is the employee's responsibility to ensure their vehicle is insured and road-worthy. The University will not reimburse costs incurred in adding business use to insurance policies Inter-campus travel Mileage for travel between the City and Collegiate Campus should be claimed at 3 miles for each return journey. The use of taxis for journeys between the University campuses will not be reimbursed except in exceptional circumstances. This should be approved by the budget holder and the circumstances explained on the expense claim Travel from Home to the University The University does not normally reimburse costs for the journey from home to their usual place of work. Reimbursement of home to office travel is a taxable benefit on the individual Car hire The University has agreed preferential rates in place with car hire companies which can make longer journeys cheaper than using a private vehicle. A list of these companies can be found on the Finance Intranet Fuel Fuel purchases for private vehicles will not be reimbursed. Instead a claim for mileage (see 5.2.1) should be made. Fuel purchases will only be reimbursed for the refuelling of hire vehicles. A valid receipt must be provided Car parking All car parking claims must be supported, where possible, by a valid parking ticket or receipt. Car parking costs at the staff member's normal place of work will not be reimbursed except where required in relation to business related travel that commences or ends outside the normal working day. 10

11 5.2.7 Fines - car parking, traffic violations and other associated fines The University will not reimburse parking or other fines, including speeding violations and congestion charge fines Tolls Toll charges incurred during business travel will be reimbursed. required where they are not available. Receipts are not Rail travel Where possible, tickets should be purchased in advance to take advantage of discounted fares. All claims must be supported by valid outbound and return train ticket or travel receipt. Journeys must be by the most economical route and must secure the lowest logical fare. First class rail travel must be booked via the nominated University Travel Management Company and will require approval by the budget holder Taxis Employees are expected to use public transport wherever possible, but if there is no feasible alternative taxi fares may be reclaimed. The cost of hiring taxis in conjunction with rail or air travel (e.g. to reach out of the way destinations or to catch very early trains) may be claimed. Receipts should be provided for all fares and must include tips wherever applicable. The use of taxis for journeys between the University campuses will not be reimbursed except in exceptional circumstances. This should be approved by the budget holder and in all cases full justification must be included on the expense claim. 5.3 International travel Air travel Arrangements made in the UK for international travel must be booked via the nominated University Travel Management Company (TMC). No amounts will be reimbursed through expenses. Arrangements for internal travel in an overseas country should, where possible and practicable, be arranged by the TMC Airport lounges Costs of admission into airport lounges will not be reimbursed Vaccinations The cost of any vaccinations required for international business travel will be reimbursed. 11

12 5.4 Accommodation Wherever possible, staff must return on the day of their business activity, but when this is impractical due to the length of the journey or the need to attend meetings for example, an economical class of hotel can be booked. For UK accommodation staff have the option of booking via the TMC, or they can selfbook using an alternative method. The University will fully reimburse members of staff for expenditure incurred on UK accommodation in respect of business journeys. Arrangements made in the UK for international accommodation must be booked via the TMC and will not be reimbursed via expenses. Arrangements made while overseas for accommodation in country should, where possible and practicable, be arranged by the TMC Staying with friends Where a member of staff chooses to make arrangements to stay with friends or family no payment will be made for accommodation costs. 5.5 Subsistence Staff may claim reimbursement for certain meals and overnight allowances when travelling on University business. The University will reimburse actual, receipted costs and are not round sum allowances. Where the amounts are deemed to be unreasonable, the University may refuse to reimburse some or all, of the claim. Rate Breakfast One Meal Evening Meal Condition Employee leaves home before 06:00 to travel on University business and incurs cost of breakfast Employee performs qualifying travel and the travel lasts for a minimum of 5 hours and incurs cost of a meal Employee does not return home from business travel until after 8pm or stays away overnight and incurs cost of an evening meal Where a member of staff is able to reclaim the cost of a meal, the cost of alcohol can be included in the claim. This could include the costs of a reasonable level of drinks with the meal. The authoriser has the discretion to decide whether the claim is reasonable Gratuities Reasonable gratuities included on receipts may be claimed (up to 10% is deemed reasonable). 12

13 5.6 Telephone calls and internet access The cost of essential telephone calls and internet access which is deemed necessary for the pursuit of University duties will be reimbursed but only when incurred whilst travelling on University business. 5.7 Incidental overnight expenses Incidental costs for example laundry, newspapers, private telephone calls and toiletries incurred whilst staying overnight on business will be reimbursed up to the maximum rates provided by HMRC. Exceeding these rates will result in the whole claim becoming taxable therefore claims will be capped at the rates below. Only actual, receipted costs can be reimbursed. Type of travel Maximum claim per night UK business travel Up to 5.00 Overseas business travel Up to Round sum allowances No round sum allowances will be paid. 5.9 Spouse travel The University will not normally meet any cost relating to the spouse/partner of an employee who accompanies the employee on a business trip except in very exceptional circumstances where there is a specific business need. If reimbursed, this cost will be liable to tax and NI for the employee Foreign currency translation Where expenditure is incurred in a currency other than sterling, the claim should use the exchange rate applicable at the time of the transaction. Core Expenses will calculate this based on the dates of travel. The rate can be amended within CORE if the actual rate is different (for example the rate at which the staff members credit or debit card company translated the foreign currency or cash was exchanged at) if evidence is attached to the claim (card statement or receipt) and reason given. 6 Events, entertaining and hospitality 6.1 Business/corporate entertaining "Business entertaining" covers food, drink or other hospitality given to external stakeholders. Any such costs incurred by members of staff will be reimbursed where it is deemed the expense is necessary and represents value for money for the University. 13

14 The University is required to collect data on who attends an event for tax purposes (see section 4.3), so when claiming for business entertainment expenses, a list must be provided stating who attended the event and the purpose of the event.. Business entertaining should be coded to nominal 7111 "Corporate Entertaining" so that spend can be captured and reported to the HMRC. 6.2 Staff entertaining and events Where any entertainment or event is for employees only, costs will be reimbursed only where it is deemed the expense is necessary and represents value for money for the University. Authorisers may refuse to reimburse expenditure which is not considered appropriate and in the course of University business. See section 4.4 for further information on the tax issues and required information. 7 Other staff expenditure 7.1 Professional and personal subscriptions The University will not pay the cost of any annual subscriptions to professional bodies for members of staff and any costs must be met by the individual. Staff members paying subscriptions personally may be able to claim tax relief for these costs by contacting HMRC directly. 7.2 Uniforms Some members of staff at the University are provided with uniforms which should normally be purchased using a purchase order. These uniforms must have the University logo permanently attached to the clothing otherwise the clothing is treated as a taxable benefit. Any items of clothing purchased without the logo will not be reimbursed. 7.3 Business gifts Anyone purchasing business gifts should review the Anti-Bribery Policy as the offering of gifts could be an offence under the Bribery Act Where possible, corporate gifts e.g. SHU branded office stationery should be offered as gifts. Gifts over 100 should be reported on the Gifts and Hospitality Register. 7.4 Gift vouchers The purchase of gift vouchers will not be reimbursed. Gift vouchers must be requested using the process described on the Finance Intranet. 7.5 Publications/newspapers/magazines Costs of newspapers, magazines or internet publications will only be reimbursed where they are deemed to be necessary for the pursuit of University duties and are purchased in the name of the University and are available to other staff. Purchases when staying 14

15 overnight can be claimed as part of the incidental overnight expenses allowance (see section 5.7). 7.6 Course and conference fees The University will pay the cost of external courses where the training leads to the acquisition of knowledge or skills which are necessary for the duties of employment or related to increasing effectiveness in the employee's present or prospective duties at the University. Where it is necessary to travel to attend these courses, the normal rules for business travel apply (see section 5). Overseas conferences incorporating accommodation should be booked via the nominated University Travel Management Company. 7.7 IT equipment (laptops, mobile phones etc.) The purchase of IT equipment and mobile phones should be through IT Help and will not be reimbursed through expenses. 7.8 Business telephone calls Where business telephone calls are made on a personal telephone, the cost can be reimbursed where a copy of an itemised bill is provided. 15