Travel and subsistence rules - staff - The Quality Assurance Agency ...

Quality Assurance Agency for Higher EducationTravel and subsistence rules for staffQAA‟s rules for travel and subsistence arrangements have been designed with the intentionof providing staff that are required to travel on business with the facilities necessary tooperate in an efficient and cost effective manner, Prior to travelling, staff should considerwhether the journey is essential, which should include the consideration of alternativearrangements to travelling e.g. video conferencing.QAA will reimburse staff for actual and reasonable expenses incurred wholly, exclusively andnecessarily in the course of its business and in accordance with the maximum rates set inthese rules.Travel and subsistence expenses reimbursed to a member of staff or charged directly toQAA (either by invoice or company credit card) within the limits set by these rules will notgive rise to a tax or national insurance liability for that member of staff. Expense claims orpayments that fall outside of these rules should not be authorised and should be sent to theHead of Finance. Approval for any exceptions to these rules can only be provided by theHead of Finance or Director of Resources. Such approval should be sought in advance andwill only be considered in exceptional circumstances.Expenditure should only be incurred within the constraints of the appropriate budget.Reimbursement of expensesClaims for reimbursement should be prepared on an Expense Claim Form with supportingitemised receipts for each item (except mileage) attached to the form. Claims will notnormally be authorised when supporting receipts are not provided. Credit card receipts alonewill not be acceptable.Staff should normally submit claims for reimbursement of expenses not later than the monthfollowing the month in which the expenditure was incurred. Late claims may result in delay inreimbursement or, exceptionally, rejection of a claim. All late claims should be accompaniedby a written justification for the delay, approved by the relevant authoriser. Claims which arereceived more than three months after they have been incurred will not be paid without asatisfactory justification for the delay and the approval of the Director of Resources.The claim should be coded, checked and authorised by the appropriate budget holder. Theauthoriser should check that all receipts are attached and that expenses have been incurredin accordance with these rules.When the claimant is also the budget holder then their director should authorise the claim.The Chair of the Board will be responsible for authorising the claims of the Chief Executive;the Director of Resources will be responsible for authorising claims of all the other directors.The Chief Executive will be responsible for authorising the claims of the Director ofResources.Staff should be aware that expense claims may be published in the future.1August 2011

3 TaxisTaxis may be used where there is no other public transport available or when they aremore cost effective than other forms of transport. They may also be used for shortjourneys with heavy luggage. Justification for the use of taxis should clearly begiven on the expenses claim form.Claims for taxi fares, including gratuities, which should not exceed 10 per cent of thefare, should be supported by receipts. All taxi drivers will produce a receipt ifrequested. Claims will not be re-imbursed if the relevant receipts are not attached.Taxis to and/or from UK airports must be approved in advance by the Head of Financeor Director of Resources.4 Private carsStaff are encouraged to use public transport whenever possible for business journeys.If no public transport is available, a hire car may be requested (see 6 below).If staff choose to use their own car for a business journey they must confirm to QAAthat they have appropriate insurance cover and a valid driving licence. In claimingbusiness mileage on an expense claim form the staff member is confirming that he/shehas such cover and will maintain such cover for any future business journeys.The mileage rate is set by QAA to cover the additional costs incurred by the car userincluding the cost of obtaining appropriate insurance cover.The mileage rate is set out in the table below:Business miles claimed in the tax yearUp to 10,000Over 10,000Mileage Rate45p per mile25p per mileBusiness miles can be claimed for journeys to a place where QAA business is beingconducted (the business meeting). Normal mileage to/from the place of work should bededucted where staff usually drive. The following table identifies business miles:Start Route End Claimable milesHome * Normal place of work (office) Home * None – this is the „normal commute‟Home * Business meeting Home * Whole journey less „normal commute‟ milesHome * Business meeting (within 10miles of normal place ofwork)Home * None – this journey is substantially the sameas the „normal commute‟Home * Business meeting Office Whole journey less „normal commute‟ milesHome * Business meeting(within 10 miles of normalplace of work)OfficeThe lower of;Whole journey less „normal commute‟ milesorBusiness meeting to office milesOffice Business meeting Home * Whole journey less „normal commute‟ milesOfficeBusiness meeting(within 10 miles of normalplace of work)Home *Office Business meeting Office Whole journeyThe lower of:Whole journey less „normal commute‟ milesorOffice to business meeting miles3August 2011

Start Route End Claimable milesBusinessmeetingn/aBusinessmeetingHome * Normal place of work BusinessmeetingBusinessmeetingWhole journeyPlace of work to business meeting (providedthere is a substantive reason for calling atplace of work)Normal place of work Home * Business meeting to place of work(providedthere is a substantive reason for calling atplace of work)*Home is your normal weekday address – reimbursement of travel to/from analternative address would be restricted to the cost of travelling to/from your normalweekday address if this would be lower.Your normal place of work or office will be QAA‟s office per your employment contract.Note that if the journey is from home to a business meeting within a 10 mile radius ofthe normal place of work (or vice versa) then it is not classed as a business journey asHMRC deem this to be substantially the same as the “normal commute” and QAA isunable to reimburse the cost of such journeys.A hire car should be used where it is more cost effective to QAA than paying businessmileage. (see 6 below)If a member of staff chooses to use their own car when public transport or a hire carwould be more cost effective to QAA then any claim for business mileage will berestricted accordingly, unless prior approval obtained from Head of Finance of theDirector of Resources.Costs of parking charges will be reimbursed. Any fines or penalties incurred formotoring or parking offences will not be reimbursed under any circumstances and arethe responsibility of the member of staff.As an alternative to private car, staff may claim the following rates if they use motorcycles or pedal cycles for business journeys.Mode of transportMotor CyclePedal CycleMileage Rate24p per mile20p per mile5 Passenger RateIn addition to the mileage rate identified in section 4, staff who use their private vehicleand carry passengers who would otherwise be paid from QAA will be able to claim apassenger supplement at a rate of £0.05 per mile per passenger up to threepassengers.6 Hire carsHire cars will only be allowed with prior approval of the Head of Finance or Director ofResources and will not normally be allowed unless they are more cost effective thanalternative methods of transport. It will not be cost effective to hire a car for severaldays and only make use of it to travel to/from a destination on the first/last day.4August 2011

Example: 2-day business journey covering (a) 200 miles (b) 400 miles£ £Daily hire rate say £25 x 2 days 50-00 50-00Accident Damage Waiver 6-00 6-00Delivery and Collection (if applicable) 10-00 10-00Out of hours charge (if applicable)VAT @ 17.5 per cent on the above 9-98 9-98Cost of hiring a car 66-98 66-98Cost of refuelling (estimate @ 10p/mile) 20-00 40-00Total cost of hire car 95-98 115-98Cost to QAA of paying business mileage 80-00 160-00Cost to QAA of public transport 75-00 140-00Using this example a hire car should be used for the 2 day, 400 mile businessjourneyPrior to hiring a car, a member of staff should provide office services with a copy oftheir driving licence (paper part for holders of the photo licence). Office services areresponsible for checking the driving licence on behalf of the car hire companies usedby QAA. You should notify office services immediately of any changes to your licence(e.g. points, disqualification etc) as this may affect whether QAA can hire a car for you.Office services may check driving licences at any time during the year.A hire car should not normally be used by a member of staff to travel from their hometo their place of work or vice versa. If such a journey is undertaken then justificationmust be given e.g. the hire car could not be delivered to a home address when it isnecessary for the business journey to begin from home. Use of a hire car for nonbusinessjourneys is likely to give rise to a taxable benefit.Office Services hold details of the current hire car arrangements and procedures. Thecar hire must be authorised by the appropriate budget holder using QAA‟s standardPurchase Order Form. The car hire should then be confirmed with the car hirecompany.Office Services must be notified by the next working day of damage to the car howeverslight, involvement in accidents or motoring or parking offences during any period ofcar hire.The actual fuel costs incurred should be claimed. The car should be filled with fuelbefore collection by or return to the hire company to avoid any excess charges.Costs of parking charges will be reimbursed. Any fines or penalties incurred formotoring or parking offences will not be reimbursed under any circumstances and arethe responsibility of the member of staff.7 Insurance for Overseas TravelQAA provides insurance cover for staff and others representing QAA when they traveloverseas.5August 2011

When travelling abroad, staff must notify HR/Office Services of the names of allpersons travelling and collect an insurance card from Office Services that detailsemergency contact telephone numbers. The card should be returned on completion ofthe overseas travel. QAA‟s insurers require an annual return detailing all those whohave travelled abroad and the dates that they were abroad.Claims, other than medical emergencies, will be dealt with on return to the UK.Incidents that may result in an insurance claim, eg theft, should be reported to thepolice/relevant authorities in the country where the incident occurs and a crimereference or similar should be obtained. This will assist with processing any claim onreturn to the UK.The insurance cover and age restrictions for each individual travelling overseas andrepresenting QAA on its business are available from Office Services.Allowable subsistence expensesPlease note that these maximum rates apply whether QAA is invoiced direct or the expensesare reimbursed via an expense claim.8 Overnight AccommodationHotel accommodation may be used in the following circumstances:QAA business is being conducted at a location or locations away from the memberof staff‟s place of work over a period of more than one day and it would not bepracticable or cost effective to return home overnight; orIt would not be practical to travel on the same day to or from a location where QAAbusiness is being conducted e.g. where the business journey would have to becommenced before 0700 hours or ended after 2200 hours.Hotel accommodation should normally be booked in advance using QAA‟s agreedbooking agents. Bookings may be made direct with hotels only when better rates canbe obtained, prior authorisation from the Head of Finance or Director of Resources isrequired in these circumstances. If breakfast is not required, the agent/hotel must benotified when the booking is made.The indicative maximum rates for overnight accommodation, which should be bookedusing the QAA‟s agreed booking agent, are:Central LondonRest of UKOverseas£150 per night£100 per nightSee Annex AStaying with Friends/FamilyInstead of staying in hotel accommodation when away from home on QAA business,staff may choose to stay with friends or family. In this case an allowance of £25 pernight is claimable. If this allowance is claimed, the subsistence allowance cannot beclaimed; however staff can still claim the allowance for personal incidental expenses.You will need to provide us with evidence that you incurred expenses as a result ofstaying with friends/family, the name, address and tel. number of the place where youstayed and the relevant date.6August 2011

9 MealsThe cost of food and non-alcoholic drinks will be paid to or on behalf of members ofstaff who are prevented, by performing QAA‟s business away from their normal placeof work, from taking a meal that they would normally take at their home (breakfast orevening meal) or place of work (lunch).The HMRC allows the reimbursement of or payment by QAA of “necessary subsistencecosts” provided that they are not “unduly lavish”. The subsistence levels set by QAAare maximum levels and should not be treated as targets. The cost of alcohol may notbe claimed for reimbursement.Expense claims will not be reimbursed unless itemised supporting receipts areprovided; credit card receipts alone will not be acceptable), Expense claims formeals will not be reimbursed where a suitable meal has been offered or provided, egan expense claim for lunch will not be paid if lunch was available during an all dayconference.BreakfastWhen staying in „room only‟ overnight accommodation, the cost of breakfast at thehotel‟s standard rate may be claimed.The cost of breakfast will be reimbursed/paid when a member of staff commences abusiness journey before 0730 hours subject to the maximum amount below.LunchThe cost of lunch will be reimbursed/paid when a member of staff is away from theirplace of work on QAA business between 1200 hours and 1400 hours subject to themaximum amount below. When a member of staff is away all day from their place ofwork, the cost of refreshments and snacks can also be claimed within the maximumamount allowed for lunch.Evening MealThe cost of an evening meal (food and non-alcoholic drinks) will be reimbursed/paidwhen a member of staff is staying in overnight accommodation (see above). The costwill also be reimbursed/paid when a member of staff has been away from their place ofwork all day on QAA business and returns to their home or place of work after2000 hours.The maximum rates allowable for meals are:BreakfastLunchEvening Meal£10 per meal (when not taken at a hotel providing overnightaccommodation)£12 per meal (to include other refreshments and snackswhen away from the place of work all day)£30 per mealGratuities/service charges may be included in claims, up to no more than 12.5 per centof the total bill, provided the total claim remains within the limits stated above and thegratuity/service charge is included on the receipt. Gratuities / service charge in excessof 12.5 per cent will not be paid and will be deducted from the expense claim.See Annex A for the relevant overseas rates.7August 2011

10 Personal Incidental ExpensesWhen it is necessary for a member of staff to stay away overnight, incidental expensesmay be claimed when supported by receipts. This allowance is intended to coverpersonal telephone calls, newspapers, essential laundry etc.The current maximum rates allowable are:UK Overnight StaysOverseas Overnight Stays£5 per night£10 per night - See Annex AThese maximum levels include any amounts that are invoiced directly to QAA orcharged to company credit cards.The amounts are cumulative for consecutive overnight stays during the same businesstrip.If these rates are exceeded, eg by a hotel invoicing personal incidental expensesdirectly to QAA, then the member of staff must reimburse the excess to QAAimmediately to avoid the whole of the personal incidental expenses for that businesstrip from becoming a taxable benefit.11 Extension of Business TripsWhere staff attending events in the UK or overseas extend their stay for extra days forpersonal reasons, no additional costs should be incurred for QAA. Staff need to beaware that an income tax liability may arise as a result of an extended stay and theyare required to take advice from Finance on the taxation implications before makingany arrangements.8August 2011

Annex AOverseas travel and subsistence rates1 AccommodationHotel accommodation should normally be booked in advance using the QAA‟s agreedbooking agents. Bookings should only be made through other agencies or direct withhotels when better rates can be obtained, prior authorisation is required from the Headof Finance or Director of Resources. If breakfast is not required the agent/hotel mustbe notified when the booking is made.The indicative maximum rates for overnight accommodation are as follows:Europe, North America and AsiaCapital and major cities £150 per nightOther locations £100 per nightAustralasia, South America, Middle East, AfricaCapital and major cities £125 per nightOther locations £100Note:Although the above rates should generally be sufficient to cover accommodation costsat any time, it is recognised that during certain times of the year e.g. due to seasonalfluctuations, currency fluctuations, festivals/special occasions in a particular countryhigher costs may be incurred. There may also be a problem of availability of suitablewestern style hotels in certain countries. Where costs quoted are in excess of theabove rates prior approval should be obtained from the Head of Finance or Director ofResources.Clearly the health and safety of all staff is QAA‟s priority. In exceptional or emergencysituations it is recognised that it may not be possible to obtain prior approval forexpenditure exceeding these rates. In these situations, staff are authorised to exercisejudgement and requested to obtain the appropriate consent retrospectively onceconvenient.2 MealsSubsistence expenses will be paid to staff and reviewers who are required to undertakeQAA business overseas. Expense claims will not be reimbursed unless itemisedsupporting receipts are provided (credit card receipts on their own are notacceptable). Expense claims for meals will not be reimbursed where a suitable mealhas been offered or provided e.g. an expense claim for lunch will not be paid if lunchwas available during an all day conference.Europe, North America and Asia - capital and major cities onlyBreakfast £129August 2011

Lunch £15Evening meal £40Europe, North America and Asia (not capitals or major cities) and Australasia,South America, Middle East and Africa – all locationsBreakfast £10Lunch £12Evening meal £30Gratuities/service charges may be included in claims, up to a maximum of 12.5 percentof the total bill; provided the total claim is within the above limits and thegratuity/service charge is included on the receipt. Gratuities / service charge in excessof 12.5 per cent will not be paid and will be deducted from the expense claim3 Personal Incidental ExpensesMembers of staff undertaking QAA business abroad will be entitled to claim forincidental expenses supported by receipts. This is intended to cover personaltelephone calls, newspapers, essential laundry etc. The current maximum allowed is£10 per night.10August 2011