Business Expenses Policy Policy Statement SRUC will reimburse appropriate business expenses for all approved business travel. Appropriate business expense levels are set out in the various business expenses guidelines, below. These sums must be actually and necessarily incurred on behalf of SRUC and be supported by a VAT receipt. SRUC will only reimburse the actual receipted amount except where a specific allowance applies. Staff are reminded that when completing their expense claim on CBS, it is their responsibility to enter the correct mileage rate for their travel, as outlined within this policy document. Janet Swadling Deputy Chief Executive Business Expenses general guidelines SRUC will meet the cost of a reasonable standard of accommodation, meal and any incidental business expenditure. If you are in any doubt about claiming items then guidance should be obtained prior to travel. All claims must be for actual amounts incurred. Business expenses claims will be processed twice a month. Claims more than one month old may be rejected. A VAT receipt must be submitted for all claims. Where any claim includes expenditure relating to another member of staff/guest then the staff/guest name must be noted in the descriptive narrative. If a claim is being made for group meetings etc., the purpose of the meeting, the number of attendees plus staff names should also be noted. This level of detail is required so that the VAT on the staff element may be recovered. Credit card slips or statements are not regarded as acceptable original receipts. Please note that if mileage in a private vehicle is being claimed, HMRC require that a VAT receipt showing a purchase of fuel during the claim period is submitted. You do not have to submit a VAT receipt for every journey claimed. The most economical mode of travelling should be used wherever possible. All air, rail and sea (ferry) travel will be standard class, for all bands of staff except where business needs dictate otherwise (e.g. privacy for the conduct of SRUC businesses). When the use of public transport is not practicable, staff should use short term hire cars, in the first instance where available, or private cars. Reference should be made to the current hire car pricing schedule and staff should seek to minimise the cost of their journey. Please note that the cost of
fuel is not included in the cost of the car hire and staff should factor in the price of fuel when estimating the cost of their journey. Private cars should not be used if the journey involves SRUC in more expense than would have been incurred by travel by other means. In general this would mean that private cars should not be used if the journey exceeds 80 miles. If a staff member does use private transport rather than available public transport, pool cars or local car hire, then SRUC will refund the cost on the basis of the prevailing HMRC mileage rates for journeys up to 80 miles, and at a discretionary rate thereafter, with the exception of mobility vehicles which would have a flat rate in line with HMRC. As indicated, these rates are subject to change in order to be consistent with HMRC rates. The rates as outlined in the previous paragraph apply to all staff members except those who work within Consultancy Division. Consultancy Division staff will be reimbursed at the prevailing rate as defined by HMRC for up to 10,000 miles per year. Mileage claimed beyond 10,000 miles in any given year will be reimbursed at the prevailing HMRC rate. The cap regarding 80 miles for journeys will not apply to those staff. All persons using their own vehicle on SRUC business must ensure that they are, at all times, in possession of a full and valid driver s licence and that their insurance policy covers the use of their vehicles for business purposes. It is the responsibility of the driver to ensure the roadworthiness of their own vehicles please refer to SRUC s Driving Safely Guidance. SRUC will not consider any claim for any liability arising directly or indirectly from improper/non-servicing of a private vehicle. Claims for business telephone and other incidental expenditure must be limited to expenses necessarily incurred: the separate items must always be detailed (e.g. the recipient of a telephone call or letters) and supported with a receipt wherever possible. Expenses can only be claimed if incurred on the day or period that the business journey took place. HM Revenue & Customs requires SRUC to clearly show that expenditure is purely of a business nature and that no private element is reimbursed. Purchases made from Supermarkets must be separately receipted from any private purchases and must be for consumption on the day and be items that would qualify for reimbursement as a business expense. Claims are subject to independent audit: anyone submitting a fraudulent claim will be liable to disciplinary action. All claims must be approved and authorised by an authorised signatory. Business Expenses: Authorisation All claims must be approved by a nominated signatory. Each authorised signatory must be approved by the appropriate Group Manager/Head of Division.
Group Managers will require the authorisation from their Head of Division. Head of Division will require authorisation from the Chief Executive. The Chief Executive will require authorisation from the Chair Person. Non Executive Directors will require the signature of the Company Secretary. Time Limits As a minimum, claims must be submitted at least on a monthly basis. However, staff can if they choose, submit claims as expenses are incurred. Late claims (i.e. claims over one month old) require to be countersigned by the appropriate Head of Division. Claims more than one month old may be refused. In addition, payment of claims may be blocked if the employee has an arrears of timesheets. Advance of Business Expenses It is SRUC s policy to process business expense claims twice a month. However, staff are only required to submit a claim once a month, as noted above. Only in exceptional circumstances will SRUC pay business expenses in advance. If an Advance of Business Expenses is required an Advance of Business Expenses Form (see Appendix A) must be completed and authorised by the appropriate authorised signatory. Completed forms should be sent to the Finance Department, Business Expenses Section, Edinburgh. The Business Expenses Section will arrange for payment to be made by bank transfer. Please allow five working days for the payment to reach your bank account. All advances of business expenses must also be shown on a completed and appropriately authorised Business Expenses Claim. Where a portion of an advance of business expenses is unspent the staff member should make out a cheque for the return of the balance made payable to SRUC and return it with the receipts submitted in support of their claim. Where the expenses incurred match the advance, staff must still complete a Business Expenses Claim to ensure that the advance is cleared and that the expenses are charged appropriately. Vehicles: Mileage Rates Mileage rates for leased and private vehicles (i.e. cars, motorcycles, bicycles) are matched to the advisory fuel rates issued by HM Revenue & Customs on a quarterly basis.
Staff who have been authorised to use their own vehicle for business travel must ensure that they obtain appropriate business mileage cover as part of their personal motor insurance policy. Staff using their own vehicle are not covered under SRUC s group motor insurance policy. It is SRUC s policy not to reimburse staff for the additional cost of business mileage insurance on their personal motor insurance policy. Passenger Supplement Staff may claim for an additional 5p per mile for every SRUC staff member they transport. This rate only applies to staff using their personal vehicle or a leased vehicle. HM Revenue & Customs does not permit this payment for the carriage of individuals who are not members of SRUC staff. Off Road Allowance The Off Road Vehicle Allowance is provided to reimburse those staff who regularly use a private vehicle to carry out their duties for the additional cost of wear and tear caused by the use of the vehicles in off road conditions. To qualify for the allowance the vehicle must be used off road on a regular basis and is subject to a minimum of 2,000 business miles (in any conditions) per annum being reached. The allowance will be paid at a flat rate of 300 per annum and will be taxable in accordance with HM Revenue & Customs rules. The allowance should be claimed during the last quarter of each year using an Off Road Allowance Claim Form and all claims must be submitted by 31 March each year. Special arrangements exist for any member of staff who, with the prior agreement of their Head of Division/Service takes their private vehicle off the public road system on SRUC business and whose vehicle suffers accidental damage as a result of the condition of the private road. Such an individual, whether or not in receipt of the Off Road Vehicle Allowance, shall be entitled to seek reimbursement of their insurance excess when they have had to have repairs carried out under their insurance policy. Pool Cars and Vans SRUC has a pool of cars and vans that can be used by an authorised employee who requires a car or van for business purposes. If no pool vehicle is available at a particular location, then employees also have the option to request a short term hire car or van which is provided by the recognised approved supplier and can be delivered to the appropriate SRUC site, or their home address if appropriate. It must be noted that these vehicles are covered by the SRUC driver s policy which restricts their use to business use only. The vehicles should not be used for the purposes of ordinary commuting. However, in certain circumstances (e.g. an early morning start or late return) the vehicle may be taken to the employee s home address and parked over night. All employees using a pool car or van are required to complete the vehicle log for the vehicle and site in question. Details to be completed are
Date of journey; Miles travelled during journey; Destination; Cost Centre to be charged; Driver s name and signature Failure to complete these details could result in disciplinary action. Overseas Travel All SRUC staff travelling overseas must have prior approval from their Group Manager and authorisation by the Executive Director responsible for their Division. Receipted expenses should be submitted and these should be reasonable and appropriate to the country visited. Where receipts are not available all expenditure should be itemised. If you are in any doubt about claiming items please seek guidance prior to travelling from your Line Manager and/or the Finance Department. Staff planning to make an overseas business trip are reminded that they are required to complete and submit an Overseas Travel and Insurance Form (see Appendix B) and conduct a risk assessment before they travel. Please see SRUC s Working Overseas Policy and Guidelines. The completed Overseas Travel and Insurance form should be returned to the SRUC Insurance Administrator, King s Buildings, Edinburgh. Day and Overnight Rates Day Rates Reasonable receipted claims for the provision of food and refreshments, whilst the employee is away from their normal SRUC base, will be accepted. HM Revenue & Customs requires SRUC to clearly show that expenditure is purely of a business nature and that no private element is reimbursed. Purchases made from supermarkets must be separately receipted from any private purchases and must be for consumption on the day and be items that would qualify for reimbursement as business expenses. Overnight Rates Where overnight accommodation is required, this should be agreed in advance with line managers. Wherever possible a purchase order should be raised by the individual staff member and approved by the line manager to cover the cost of overnight accommodation. SRUC staff are expected to stay in a reasonable standard of accommodation with facilities such as en-suite, tea/coffee making facilities, TV and telephone. This is a 24 hour receipted rate and covers suitable accommodation; all meals; refreshments and incidentals. All expenses claimed should be of a reasonable nature and must be business related
. Allowances Residential Training Course / Conferences Reasonable receipted claims for incidental expenses, whilst the employee is away at a residential training course or conference, will be accepted. Professional Membership Fees SRUC will reimburse staff for membership fees to professional bodies directly related to their current role with SRUC. Reference should be made to your Group Manager for information on whether or not a particular professional fee is appropriate and will therefore be payable by SRUC. Claims for repayment of fees should be made as part of a monthly business expense claim. Protective Clothing and Equipment Protective clothing and equipment required by staff to carry out their tasks is provided by SRUC. Staff should not make independent purchases of protective clothing and equipment. On appointment, staff should approach their Divisional Line Manager to obtain the required clothing/equipment. Lists of required clothing and equipment are monitored by the SRUC Safety Adviser and the Corporate Procurement Manager who has arranged the provision of equipment with preferred suppliers. It is the duty of individual staff to ensure that protective clothing and equipment is maintained in a functional state. Replacement equipment and clothing can be obtained through the Divisional Line Manager. For further details, please see SRUC s Personal Protective Equipment guidelines. Non-SRUC Staff This section deals with the procedures which departments should follow in respect of the reimbursement to non- SRUC staff, including interviewees, of out of pocket expenses. Travel Arrangements and Accommodation In order to minimise costs Departments should, where possible, arrange for travel and hotels through approved sources. Expenses
It is the responsibility of the sponsoring SRUC Cost Centre Manager to inform the external party as to the procedure for reimbursement of out of pocket expenses. The contact member of staff should provide the external party with a Reimbursement of Reclaimable Expenses by Externals claim form (see Appendix C). The following procedures should be followed to process a claim: All claims should be on a receipted basis and be accompanied by a VAT receipt. Maximum rates claimable are in line with those available to SRUC staff. The completed form must be signed by the external person and should be approved by an authorised signatory. Completed forms should be sent to Business Expenses, Finance Department, Edinburgh. The preferred method of payment of expenses to externals is by BACS. KEY CONTACT Andrew Tennant Financial Controller SRUC West Mains Road Edinburgh EH9 3JG Andrew.tennant@sruc.ac.uk Telephone: 0131 535 4085