Peninsula Community Health Employee Travelling Expenses Management Guidance ote Title: Employee Travelling Expenses Procedural Document Type: Management Guidance ote Reference: MG 08b CQC Outcome: 13 Version: Draft 1.2 20/05/14 Approved by: JPC (20/05/14) Ratified by: Clinical Quality and Safety Committee Date ratified: 05/08/14 ame of originator/author: Chris Burnham, HR Manager ame of responsible team: Human Resources Review Frequency: 3 Years Review Date: May 2017 Target Audience: Line Managers and All Employees Executive Signature (Hard Copy Only): 1
Contents 1 Introduction 3 2 Responsibility 3 3 Definitions 3 4 Employee Travelling Expenses MG 3 4.1 General 3 4.2. Home To Duty Mileage 4 4.3 Eligible Mileage 4 4.4 Excess Mileage 5 4.5 Training Courses/Conferences In County 5 4.6 Out Of County/Within South And West Region 5 4.7 Out Of South And West Region 5 4.8 Attendance For Medical Examination 5 4.9 Car Parking Fees/Tolls 6 4.10 Frequency Of Claim 6 4.11 Authorisation 6 5 Risk Management Strategy and Implementation 6 5.1 Implementation 5 5.2 Training and Support 5 5.3 Dissemination 6 5.4 Storing the Procedural Document 6 5.5 Equality Impact Assessment 7 6 Process for Monitoring Effective Implementation 7 7 Associated Documentation 7 8 References 7 APPEDICES A Equality Impact Assessment 8 2
1. Introduction This Management Guidance ote (MG) sets out general guidance on the submission of employee travel expenses claims for managers and employees of Peninsula Community Health (PCH). PCH has operates an online expenses claims system which generates mileage calculations for each journey undertaken based on journey postcodes. Payment of travel expenses is based on the mileage figures produced by the PCH online system, improving the consistency and robustness of claims procedures across the organisation. User guidance notes on completing online travel expenses claims is available on the intranet and complements the general guidance set out in this MG. 2. Responsibility 2.1 The Organisation PCH will ensure that: The provisions of this MG are applied fairly and reasonably. All employees are informed about and have access to the contents of this MG. 3. Definitions 3.1 Eligibility: This MG covers all employees of PCH. 3.2 Business Mileage: mileage which the employee is obliged to incur travelling in the performance of their duties or travelling to/from a place that they have to attend in the performance of their duties. It does not apply to ordinary commuting, i.e. the journey made each day from home to an employee s permanent workplace 3.3 Standard Rate: The rates of reimbursement as set by HM Revenue and Customs (HMRC) 4. Employee Travelling Expenses MG 4.1 General 4.1.1 Reimbursement through the payment of travelling expenses shall be made in respect of expenses necessarily incurred by an employee travelling on business approved by PCH. 4.1.2 Business travel expenses are paid directly into employees bank accounts as part of the monthly payroll process. Business fares (on public transport) are not usually subject to tax or national insurance (I) payments. Business mileage is usually not subject to tax or national insurance payments, so long as the amount paid does not exceed the standard rates approved by HM Revenue & Customs (see the table under Business Mileage - rates per mile, in section 4.3 below). As PCH rates match the approved HMRC rates, employees business mileage will not normally be subject to tax or I. 3
4.1.3 When using their vehicles in the performance of their duties employees must ensure they possess a valid driving licence, motoring organisation test (MOT) certificate and motor insurance which covers business travel, that they are fit to drive and drive safely and that they obey the relevant laws e.g. speed limits. 4.2 Home to Duty Mileage 4.2.1 Home to duty or usual workbase is not normally reimbursed. There are, however, a number of exceptions. 4.2.2 Recall to duty (On-Call): Claims under this category are reimbursed at the standard rates set out below. 4.2.3 Excess Mileage: See paragraph 4.5. 4.2.4 Recall to duty: This category covers employees who are recalled to work outside normal working arrangements. Reimbursement is at standard rate or lease car rate and payment is taxable. 4.3 Business mileage - rates per mile 4.3.1 Current business mileage rates are as follows: Type of Vehicle Business mileage rate payable per mile up to 10,000 business miles per tax year Car or Van 45p 25p Motorbike 24p 24p Bicycle 20p 20p Business mileage rate payable per mile over 10,000 business miles per tax year 4.3.2 Business mileage is paid at the same rate per mile up to a threshold of 10,000 miles per tax year, above which the rates drop for car and van drivers. Please note that an employee s business mileage in all types of vehicles will count towards the 10,000 mile threshold. For example, if an employee changes their car for a van they do not start a new 'first 10,000 miles' 4.3.3 Employees will be reimbursed for miles travelled in the performance of their duties which are in excess of the home to agreed work base return journey. ormally, the miles eligible for reimbursement are those travelled from the agreed work base to a separate location and back. However, when the journey being reimbursed starts at a location other than the agreed work base, for example home, the mileage eligible for reimbursement will be as set out in the example in Table 1 below: 4
Table 1 illustrative example ote: In this example the distance from the employee s home to the agreed base is 15 miles. Journey (outward) Distance Eligible miles Home to base 15 miles one Home to first call Less than 15 miles Eligible mileage starts after 15 miles have been travelled Home to first call More than 15 miles Eligible mileage starts from home, less 15 miles Journey (return) Distance Eligible miles Last call to base Eligible mileage ends at base Last call to home Less than 15 miles Eligible mileage ends 15 miles from home Last call to home More than 15 miles Eligible mileage ends 15 miles from home 4.3.4 Mileage claimed under this category is classified as business mileage and is reimbursed at the standard rate. 4.3.5 PCH also pays a passenger allowance of five pence per passenger per business mile in order to promote car sharing whenever possible. This is paid to an employee if they are the driver and are travelling on business. Their passenger(s) must also be employees and they must also be travelling on a PCH business journey. As with standard business mileage, this will normally be non-taxable. 4.4 Business fares using public transport 4.4.1 Employees can claim travel expenses if they are using public transport for business travel providing they have a relevant receipt(s). They may claim for the full amount on the receipt although if they normally commute by public transport they should deduct the cost of their normal journey from the claim. As with claims for mileage using the employee s own vehicle, PCH is entitled to reimburse the amount based on the most cost effective way of travelling. For example, if the employee is travelling by train they should travel in standard class and should book a cheaper advance purchase ticket if practicable. 4.4.2 If an employee uses a combination of private and public transport for business travel they may claim for both. For example, if they drive from home to a station and then take a train they may claim for the full amount of their train journey and for any mileage above their normal daily commute. 4.4.3 The employee s line manager will authorise their claim and they will need to be comfortable that the correct amount is being claimed. If there is uncertainty about how much can be claimed, please check with the HR team. 4.5 Excess Mileage 4.5.1 This mileage is reimbursed to employees who, as a result of organisational change or as an alternative to redundancy, are required to move their base by the organisation, either on a temporary or permanent basis. Please refer to MG08 for further details on the process covering excess mileage and additional fare costs. In accordance with HMRC legislation, the whole reimbursement relating to excess travel is subject to tax and I deductions at source, deducted at the employee s standard rate. 5
4.4.2 It should also be noted that excess mileage payments are not classified as business miles in respect of eligibility for a lease car. 4.6 Training Courses/Conferences in County 4.6.1 Where an employee is required to attend a training course or conference at a location other than their normal base, the calculated mileage (as generated by the PCH online expenses claims system) less the normal home to duty mileage may be claimed. The mileage is classified as business mileage and reimbursement is at the standard rate or lease car rate. 4.6.2 Travel costs incurred when employees attend training courses or conferences and events, where attendance is not required by PCH, will be reimbursed at the standard rate but the prior agreement of the line manager must be obtained. Again, normal home to work mileage should be deducted from the mileage claimed. 4.7 Out of County but within South and West Region 4.7.1 Business Meetings. For attendance at meetings on the business of the organisation, reimbursement will be at the standard or leased car rate. The calculated mileage (as generated by the PCH online expenses claims system) less the normal home to duty mileage should be claimed 4.7.2 Training Courses/Conferences For attendance on training courses/conferences, reimbursement will be at the standard rate or lease car rate. The calculated mileage (as generated by the PCH online expenses claims system) less the normal home to duty mileage should be claimed. Prior approval is necessary for travel out of county by private or lease car. 4.8 Out of South and West Region* 4.8.1 Mileage travelling on business or for any other reason is reimbursed at either standard rate or lease car rate. For the purpose of this MG the SW Regional boundary is defined as beyond Gloucestershire, Wiltshire and Dorset. 4.9 Attendance for Medical Examination 4.9.1 Where at the request of management an employee is required to attend at a place other than their normal base for medical examination, any additional mileage (as calculated by the PCH online expenses claims system) shall be reimbursed at either the standard or lease car rate. 4.10 Car Parking Fees/Tolls 4.10.1 PCH will reimburse the cost of any car parking fees or tolls incurred by the employee on the business of the organisation. All claims must be supported by receipts, vouchers or other proof of payment and will require the approval of the employee s line manager. The online system will generate a unique number for each claim submitted which should be written by the employee on the receipts submitted. Failure to produce supporting receipts will result in the expenses reimbursement in question being subject to tax under HMRC regulations. 6
4.11 Frequency of Claim 4.11.1 All claims for reimbursement of travel and associated expenses must be submitted as soon as possible after the end of the month. Claims should only contain details of a single calendar month. 4.11.2 Any claim submitted more than three calendar months after the month end date shall not be reimbursed unless there are exceptional circumstances (e.g. long-term sickness). 4.12 Authorisation of Online Claim Forms 4.12.1 Once an online travel expenses claim has been submitted, it goes through an authorisation process. Claims are passed to the employee s line manager for approval via an automated electronic process. Following review by the line manager, the employee receives an e-mail notification advising them of whether their claim has been authorised or rejected. 4.12.2 Claims which are approved will then be automatically included in the next appropriate payroll run. 4.12.3 Details of how to use the on-line expenses system to make claims and to review and approve claims, including how claims are handled during periods when line managers are absent (e.g. holiday periods etc) can be found on the PCH Intranet. 5. Risk Management Strategy Implementation 5.1 Implementation All employees will be made aware of this MG via PCH s communication bulletins and HR locality teams to promote policy and process through team meetings. 5.2 Training and Support Advice on how to apply the MG consistently and fairly will be available from the HR and Finance Teams. 5.3 Dissemination Once ratified, this MG will be loaded to the intranet (read only) and replace the current Employee Travelling Expenses MG. Confirmation of receipt is not required for this MG. 5.4 Storing the Procedural Document The signed procedural document will be stored (hard copy) centrally, as will the digital (soft copy) version. 5.5 Equality Impact Assessment PCH aims to design and implement services, policies and measures that meet the diverse needs of our service, population and workforce, ensuring that none are placed at a disadvantage over others. 7
As part of its development, this strategy and its impact on equality have been assessed. The assessment is to minimise and if possible remove any disproportionate impact on employees on the grounds of race sex, disability, age, sexual orientation or religious belief. o detriment was identified. 6. Process for Monitoring Effective Implementation The effective implementation of this MG will be monitored by the HR Directorate in conjunction with the Joint Partnership Committee (JPC). Any changes in employment legislation which impact on the policy will be updated by the HR Team and the JPC will be informed. The MG will be reviewed every 3 years from the date of ratification. 7. Associated Documentation This document references the following supporting documents which should be referred to in conjunction with the document being developed: Excess Mileage and Additional fare Costs MG 08 User Guide PCH Online Expenses Claim system 8. References HM Revenue and Customs approved mileage rates available at: http://www.hmrc.gov.uk/rates/travel.htm 8
EQUALITY IMPACT ASSESSMET APPEDIX A Section Officer responsible for the assessment Chris Burnham, Human Resources Manager ame of Policy to be assessed Employee Travelling Expenses MG 08b 1. Briefly describe the aims, objectives and purpose of the policy. Date of Assessment 18.3.2014 Is this a new or existing policy? Existingrevised To have a clear process and approved mileage rates for employees claiming travel expenses. 2. Are there any associated objectives of the policy? Please explain. To act as a responsible employer and provide a fair and adequate reimbursement to employees for business mileage undertaken on behalf of the organisation.. 3. Who is intended to benefit from this policy, All employees. and in what way? 4. What outcomes are wanted from this policy? o detriment to employees. 5. What factors/forces could contribute/detract from the outcomes? A lack of robust processes to ensure that employees are properly reimbursed for legitimate expenses incurred in relation to the business of the organisation. Lack of understanding/training regarding the new online system 6.Who are the main stakeholders in relation to the policy? All employees, managers and trade unions. 7. Who implements the policy, and who is responsible for the policy? Managers/ HR/Finance Dept /Trade Unions 8. Are there concerns that the policy could have a differential impact on RACIAL groups? Please explain Applies to all employees irrespective of banding or status. 1
9. Are there concerns that the policy could have a differential impact due to GEDER (including TRASGEDER)? Applies to all employees irrespective of banding, status or gender. 10. Are there concerns that the policy could have a differential impact due to DISABILITY? Applies to all employees irrespective of banding, status or disability. 11. Are there concerns that the policy could have a differential impact due to SEXUAL ORIETATIO? Applies to all employees irrespective of banding, status or sexual orientation. 12. Are there concerns that the policy could have a differential impact due to their AGE? Applies to all employees irrespective of banding, status and age. 13. Are there concerns that the policy could have a differential impact due to their RELIGIOUS BELIEF? Applies to all employees irrespective of banding, status or religious belief. 2
14. How have the Core Human Rights Values of: To treat all employees fairly and consistently. Fairness; Respect; Equality; Dignity; Autonomy Been considered in the formulation of this policy/strategy If they haven t please reconsider the document and amend to incorporate these values. 15. Which of the Human Rights Articles does this document impact? The right: To life; ot to be tortured or treated in an inhuman or degrading way; To be free from slavery or forced labour; To liberty and security; To a fair trial; To no punishment without law; To respect for home and family life, home and correspondence; To freedom of thought, conscience and religion; To freedom of expression; To freedom of assembly and association; To marry and found a family; ot to be discriminated against in relation to the enjoyment of any of the rights contained in the European Convention; To peaceful enjoyment of possessions and education; To free elections 3
16. Could the differential impact identified in 8 13 amount to there being the potential for adverse impact in this policy? Please explain 17. Can this adverse impact be justified on the grounds of promoting equality of opportunity for one group? Or any other reason? Please explain for each equality heading (questions 8 13) on a separate piece of paper. /A 18. Should the policy proceed to a full equality impact assessment? 17. If Yes, describe why, then proceed to a full EIA. 18. If o, are there any minor further amendments that should take place? o 19. If a need for minor amendments is identified, what date were these completed and what actions were undertaken. /A Signed (completing officer): Chris Burnham Date: 18/03/2014 Signed (Director of HR): Jacquie Kessell Date: 20/05/2014 Please ensure that a signed copy of this form is sent to the Governance and Communication Teams to be placed on the PCH website. 4