Manchester Growth Company Travel and Expenses Policy

Transcription

1 Manchester Growth Company Travel and Expenses Policy Scope This policy applies to all staff within the Manchester Growth Company (MGC). Purpose This policy demonstrates MGC s commitment to reducing its carbon footprint and protecting the environment as well as being in line with the needs of the business. MGC s policy is to reimburse employees for all necessary travel, accommodation and other expenses incurred while they are engaged upon authorised company business. It is not the purpose of this policy that a member of staff makes undue profit out of travel and expenses claims. Employees should always use the most appropriate and cost effective form of travel with due regard to business efficiency and the environment. Policy Introduction The level of reimbursement allowed will be sufficient to adequately meet the needs of employees for the effective conduct of company business. The MGC s policy is founded on the principal that only expenses incurred in the performance of duties are reclaimable. This policy does not attempt to cover every situation but it does lay down the ground rules. Each situation should be considered within its own context and the application of the policy is a line management responsibility. Where line managers are unsure then they should consult their own line manager, the Human Resources or the Finance Team for advice as appropriate. Check List of Important Points When deciding on the appropriate form of travel for a business journey, it is the responsibility of the employee (and their line manager) to choose the most appropriate form of travel giving due regard to cost and appropriate use of the employee s time. All options should be considered i.e. company car, private car, hire car, train, bus, tram, taxi, air, bicycle and walking. The most appropriate form should be chosen. Line managers are expected to check claims to ensure the appropriate options are chosen in each instance. Expense claims must be submitted monthly and promptly. This is important because if this is not done it can lead to the management accounts not being a true reflection of the businesses performance and financial position, which in turn can lead to incorrect decisions and courses of action being taken. If expenses aren t submitted monthly there is no guarantee they will be paid and expenses submitted over two months after the expense is incurred will not be paid. All payments in respect of authorised expenses will be made via BACs. October 2014 v2page 1 of 13

2 Employees who have been issued with a Car Park Pass will not be reimbursed for parking at another car park within one mile of that car park. If heavy or bulky items need to be transported to or from, the car into the office, then payment for a suitable parking bay will be reimbursed for a maximum of 30 minutes. Account Managers will only be paid expenses for visits that have been logged on Captavia. A schedule and Captavia log must be produced in order to claim expenses (as well as the required receipts). Receipts/ vouchers/ proof of payment must always be obtained and submitted with the expense claim. Expenses must be described adequately otherwise HMRC may attempt to tax employees personally on the amount reimbursed. Where claiming for business mileage, the mileage section of the claim must be completed. The Finance Department will not pay any expenses if the employee does not describe the nature of the expense. Travel claims must show the purpose of the journey, destination, method of transport and entertainment claims must show person entertained and project for which the expense was appropriate. A claim for reimbursement of expense can be made by an employee for all incidental expenditure which is incurred in order to perform their work related duties. A claim for reimbursement should be made by completing an online expense form available on the Intranet. This policy provides guidance on the types of expenditure which is considered necessary and acceptable in order to carry out work related duties and therefore qualifies for reimbursement in full to the employee. Any claims for expenditure which is not incidental to, for example business travel or business meeting, should not be claimed using the expenses system. Further advice should be sought from HR / Payroll on the correct way to have these costs reimbursed. Any expenses incurred by partners or spouses will not be reimbursed. False Claims If the Company considers that any expenditure claimed was not legitimately incurred on behalf of the Company, it may request further details from the employee. The Company will thoroughly investigate and check any expenses claim as it sees fit. It may withhold payment where insufficient supporting documents have been provided. Where payment has been made to the employee prior to the discovery that the claim was not legitimate or correct, it may deduct the value of that claim from the employee s salary. Any abuse of the Company's expenses policy will not be tolerated. This includes, but is not limited to: false expenses claims; claims for expenses that were not legitimately incurred; claims for personal gain; claims for hospitality and/or gifts to induce a client or other business contact to take improper action; and receipt by you of hospitality and/or gifts from business contacts that may be perceived to influence your judgment. October 2014 v2page 2 of 13

3 Where an employee makes a false claim, the Company may instigate disciplinary action, and, in certain circumstances, may treat a breach of this policy as gross misconduct, which may result in the summary dismissal of the employee. In addition, the Company may report the matter to the police for investigation and criminal prosecution. Expenses Private Car allowances Employees should refer to appendix one for details of mileage allowances when employees use their own private vehicle for business use. Any expense exclusively concerned with private use is the responsibility of the employee. Employees whose job roles have been designated as Non Specific Office Based (NSOB) posts, should refer to the NSOB policy for detail on their entitlement to claiming travel expenses. Company Cars Employees should refer to appendix one for details of mileage allowances when using company cars for business use. Driving Penalties The company will not pay any fines or penalties incurred while on company business for whatever reason, including penalties for not paying for a rail ticket in advance of boarding the train and penalties or fines associated with motoring offences, including speeding or parking fines, clamping or vehicle recovery charges. These are the responsibility of the employee. This also applies to employees who have the use of a company car. Parking A receipt should support all parking charges unless via a meter that does not issue them. The most economical car park should be used taking into account price, convenience and common sense. Employees who have been issued with a car parking pass, will not be reimbursed for parking at another car park within one mile of that car park. If heavy or bulky items need to be transported to or from the car into the office, then payment for a suitable parking bay will be reimbursed for a maximum of 30 minutes. Travel by rail The Company standard is standard class.. If the journey will last for more than four hours and the employee will need to work on the train, First Class travel may be purchased providing it is approved by the employee s line manager and the employee is able to purchase a discounted ticket. Motorcycle allowance October 2014 v2page 3 of 13

4 Employees should refer to appendix one for details of mileage allowances when using a motorcycle for business use. Bicycle allowance Employees should refer to appendix one for details of mileage allowances when using a bicycle for business use. Travel by Taxi As a general principle, travel by taxi will not be reimbursed. However, there will be occasions where taxi travel is appropriate. These instances could include; Where public transport is not available When there is likely to be insignificant inconvenience In unfamiliar locations When staff are carrying heavy or bulky packages or luggage For safety purposes For reasons of economy e.g. a group of employees are travelling together and the combined cost of travelling via public transport would be of a greater expense Where this is the case it must be agreed with the employee s line manager in advance and the appropriate receipts presented. Wherever possible, taxis or mini-cabs should be pre booked at a fixed rate. Travelling Abroad The company standard is Economy Class throughout the world. However, where journeys are in excess of nine hours and the employee will not have time to rest on territory before commencing work commitments, premium economy or equivalent can be booked. Premium economy or equivalent can be booked in the case where complimentary travel is provided as part of a relationship or sponsoring package e.g. an airline sponsorship of a marketing campaign. The employee must give the Finance Department as much notice as possible when foreign currency, traveller s cheques or cash advances are required. These items will only be paid in advance with the approval of the line manager. Holidays can be added onto business travel as long as no additional expense is incurred by the employer. This is subject to the employee having sufficient annual leave available and this being authorised by their line manager. Hotel Accommodation Employees who are required to stay away overnight may stay in accommodation that does not cost any more than the guide price detailed in appendix one. It is appreciated that, given global differences in the cost of living and fluctuating exchange rates, the guide figure may need to be exceeded on occasions. However, the employee October 2014 v2page 4 of 13

5 must always obtain their line manager s consent prior to booking if this will be the case. Meals Where an employee is required to stay away for one or more nights, the cost of meals will be reimbursed in line with the allowances detailed in appendix one. Entertaining Where employees entertain external clients/customers the costs can be reclaimed providing that prior approval is granted by the appropriate Director. All entertaining must be on a modest scale. The names of all persons entertained must be listed when seeking reimbursement of expenses. No reimbursement will be made without this list. Alcohol must be kept to a reasonable level and must not be consumed at lunchtime. Working lunches are not reimbursable for employees entertaining each other. Appendix one details the allowances relating to business entertaining. Charge accounts Charge accounts must not be opened in the Company s name. The company has accounts for Rail Travel with other organisations that may be used to arrange travel facilities and hotel accommodation. These accounts are for business travel only and must not be used for personal travel. Further information can be obtained from the Finance Team. Telephone expenses Mobile Telephone Calls The cost of Business Calls undertaken on a personally owned mobile phone will be reimbursed subject to submission of an appropriate telephone bill. Personal calls outside of business office hours Reasonable late personal calls to home when working away from the office or late hours may be reimbursed. Other Expenses Display Screen Equipment / Eye Tests The company will reimburse the cost of an eye tests for all display screen equipment users. If an eye test shows that glasses are required specifically for display screen work, MGC will reimburse the cost for a basic pair of glasses and lenses. All claims for glasses must be supported by confirmation from an optician that the employee needs the lenses for VDU use. October 2014 v2page 5 of 13

6 All claims must be made using the expenses system and the employee must pay in advance and claim back with the appropriate receipts and evidence. Appendix one details the allowances for eye tests and glasses where required for screen work. Appendix one provides detail of all other expenses that may be claimable by an individual. These relate to; Subscriptions Newspapers and magazines Capital items Stationery Charitable donations Broadband Further detail of the current level of allowances can be found in appendix one. The Manchester Growth Companies reserve the right to amend this list from time to time in line with HMRC guidelines. Procedure How to calculate Business and Private Travel Journeys between the employee s home and the employer s normal place of work are always treated as private travel. Journeys between the employee s normal place of work and any other premises, apart from the employee s home, for authorised business purposes will count as business travel, which includes journeys between two MGC premises. Authorised business travel is reclaimable. Where a journey to/from a customer s premises or a MGC outstation begins/ends at the employee s home, the claimable expense is the difference between: 1) The travel expenses (or mileage) actually incurred (as A below); and 2) The actual mileage between the employee s home and the office (as in B) For Example: - The employee decides to visit a Company in the afternoon and the employee will then be returning home. a) The journey from the office to the Company is 12 miles. The distance from the Company to the employee s home is 18 miles. Therefore the total and actual distance covered is 30 miles ( ). b) The actual mileage between the employeer home and the office is 20 miles. In this example the employee would claim the difference, which is therefore 10 miles. It is each employee s responsibility to ensure they have adequate insurance cover protection for all business usage. October 2014 v2page 6 of 13

7 Business Mileage Receipts The employee is required to provide VAT receipts for fuel purchased in relation to business mileage being claimed. Part of the mileage rate paid to staff can be apportioned directly to fuel costs this rate is supplied by HMRC, and MGC can claim VAT back on this amount. In order to claim, HMRC require proof that this fuel was purchased and therefore VAT receipts are required that cover the total mileage claimed in the period. A receipt does not have to be supplied individually for each journey, but receipts must be provided that collectively account for all of the mileage being claimed. This means simply that if the employee claims business mileage of 50 miles, the employee must provide VAT fuel receipts that cover the purchase of the fuel required to travel at least the 50 miles in the employer s vehicle it does not matter if the receipts account for more mileage than is being claimed. If the employee does not provide these receipts, their claim may be rejected. VAT The VAT, if any, which is recoverable, should be entered if the claim relates to a vatable company activity. VAT is generally recoverable on the following expenditure: - a) Fuel and Oil b) Car Repairs c) Car Park Charges (not meters) d) Accommodation and meals when on a trip from the office e) Telephone calls from coin boxes The employee will require an invoice for the above except telephone calls. How to complete the Expense Claim Claims should be submitted on a monthly basis and as early as possible after the last expense has been incurred. 1) Launch the intranet and click the Expenses link on the left hand menu 2) Click on the + button to the bottom right of the claims list 3) Enter the Dates that the claim covers/will cover. This is usually a calendar month 4) Add a new claim item by clicking on the + button to the bottom right of the list 5) If this claimable item relates to a link in Captavia, or can be grouped together with other expenses (for example a business trip that include multiple expenses), create a new journey by clicking the Create new Journey button to the right of the Journey box. Otherwise choose the Default option 6) Select the type of Item that is being claimed. The list of fields to complete vary dependant upon the type of expense being claimed. A list of the most common fields can be found in Appendix one three. 7) When the item is completed, click the tick button at the bottom right of the form to add that item to the claim 8) Repeat numbers 4 to 6 for each additional item being claimed October 2014 v2page 7 of 13

8 9) Once all items have been added, click the Save Changes button to save all items to the claim. This saves the claim but does not submit it. 10) Additional items can be added to the claim at any time prior to submission of the claim by clicking the claim in the list of claims 11) Claims Items can be edited at any time prior to submission by clicking on the item in the claim item list 12) Claim items can be removed at any time prior to submission by clicking on the deleted button (x) to the right of the claim item. Submitting a claim To submit a claim, the user should open the claim by selecting the claim in the claim list and clicking on the Submit button. The user will be asked to confirm that the claim information is correct and click the Confirm button All receipts should be scanned and uploaded to the relevant claim on the expenses system. Cancelling a Claim Only claims that have not been submitted or have been rejected can be cancelled. To cancel a claim, click the Cancel button at the far right of a claim in the claim list. Resubmitting a claim If a claim has been rejected by an authoriser, it can be altered by the employee and resubmitted. The resubmitted claim is then processed in the same way as an original submitted claim. Authorisation of Expense Claim Line manager Once a claim has been submitted, the employee s line manager will receive an informing them of the new claim. The line manager will check the claim, ensure that all receipts have been uploaded and are valid for the claim, and ensure that expense codes have been entered correctly. If the line manager is satisfied that the claim is correct and has been completed correctly, the line manager can Accept the claim. This authorises the claim and sends an to the relevant Authorised Signatory, informing them of the outstanding claim. All receipts should be forwarded to the Authorised Signatory. If the line manager does not agree with the claim, the Claim can be Rejected. When rejecting a claim, a reason for rejecting the claim must be given. When a claim is rejected, the employee is notified by of the rejection, and can alter the claim and resubmit it, or cancel the claim. Authorised Signatory Once a claim has been Accepted by a line manager, the relevant Authorised Signatory is sent an informing them of the outstanding claim. The Authorised Signatory should check the validity of the claim, and either Accept or Reject the claim. October 2014 v2page 8 of 13

9 If Accepted, the claim is added to the list of Authorised Claims for the relevant Finance Team. If Rejected, a reason for this rejection should be given and the claim is rejected back to the line manager, who will receive notification of the rejection. Processing by Finance When the claim has been authorised, the claim will be processed. The Finance Team will check the claim for errors and invalid expense codes, and can reject the claim if necessary. When rejected, the claim is rejected back to the line manager with a reason for rejection, and both the line manager and Authorised Signatory will receive an informing them of the rejection. Once authorised, claims cannot be altered by Finance. Where information is incomplete or incorrect, the claim will be rejected in order for the claim to be corrected. Whilst it is not the responsibility of Finance to check receipts, a percentage of receipts will be checked on a random basis. If the claim is accepted and processed, the claim is added to Agresso and the Agresso transaction number for the claim is input into the Expense System. The employee will then receive an stating that the claim has been completed, along with the transaction number for later reference. October 2014 v2page 9 of 13

10 Private Car Expenses - Mileage Allowance Appendix one - Company Expenses Up to 10,000 Business miles per xxp per mile tax year Over 10,000 Business miles per xxp per mile tax year The above are in line with HMRC rates and will be reviewed if HMRC change their rates Company Car Expenses Fuel and mileage Fines and Private Expenses xxp per mile The company will not pay any fines or penalties incurred while on company business for whatever reason, including penalties for not paying for a rail ticket in advance of boarding the train and penalties or fines associated with motoring offences, including speeding or parking fines, clamping or vehicle recovery charges. These are the responsibility of the employee. Any expense exclusively concerned with private travel must be paid by the individual. Motorcycle Allowance In accordance with HMRC rates, xxp per mile will be paid for all business journeys made by motorcycle. This will be reviewed if the HMRC change their rates. Bicycle Allowance In accordance with our Green Travel Commitment, xxp per mile will be paid for all business journeys made by bicycle. Hotels and Meals Hotel Accommodation Accommodation at the discounted rate should be no more that 200 in a capital city or 150 elsewhere. Meals Reimbursement of meal costs when travelling away from their normal place of work, must be within the following allowances; Where an employee is required to leave their house on company business before 6.00am and will be working away from their usual place of work, they will be reimbursed for breakfast up to a value of 5.00 (inclusive of VAT). Where October 2014 v2page 10 of 13

11 breakfast is included within the accommodation rate the breakfast allowance can not be claimed; Lunches an employee will be reimbursed for lunches up to a value of 7.50 (inclusive of VAT); Where an employee is on company business and will be working away from their usual place of work and not returning until after 8.00pm, they will be reimbursed for evening meals up to a value of (inclusive of VAT) Beverages - up to a value of 3.00 will be reimbursed per night. Alcohol will not be reimbursed except for instances of business entertaining. Entertaining Business entertaining should try to be limited to 35 per person including alcohol; this limit can only be exceeded at the discretion of the employee s Director in conjunction with the Company Scheme of Delegation. Display Screen Equipment Display Screen Equipment Other expenses Subscriptions Newspaper and Magazines Capital Items Stationery Charitable donations Broadband The company will reimburse a maximum of xx for eye tests. If an eye test shows that glasses are required specifically for display screen work, MGC will reimburse the cost for a basic pair of glasses and lenses Subscriptions to professional bodies will be reimbursed provided this is seen as relevant to the role of the individual member of staff and is agreed by the relevant Managing Director. No reimbursement Must not be purchased without prior approval Must not be purchased through the expenses system No reimbursement Cannot be claimed through the expenses system. HMRC class Broadband payments to employees as a taxable benefit, and as such all agreed payments should be paid through payroll along with other taxable benefits. In order to arrange these payments through payroll, HR Advice should be contacted and sent full details of these payments, along with appropriate authorisation. If this is a regular scheduled payment, please ensure that this is specified in any correspondence. To claim all the above appropriate receipts should be submitted. October 2014 v2page 11 of 13

12 Appendix two - Staff on Mileage Rates in excess of HMRC Rates Company Mileage Allowance Increased by UKTI - Lancashire xxp per mile for those with Car Allowance UKTI - Lancashire and xxp per mile those without Car Allowance CS - Rochdale xxp for first 8500 miles NJC RBTS TBC NJC WS - OLASS/Probation Staff without Car Allowance Engine Size 1000cc + Up to 8,500 miles xxp per mile Over 8,500 miles xxp per mile Probation Service Engine Size cc Up to 8,500 miles xxp per mile Over 8,500 miles xxp per mile Staff With Car Allowance Engine Size 1000cc + Up to 8,500 miles xxp per mile Over 8,500 miles xxp per mile Engine Size cc Up to 8,500 miles xxp per mile Over 8,500 miles xxxp per mile October 2014 v2page 12 of 13

13 Appendix one 3 Common Claim Item Fields Not all items listed below are required for all expense types Field Item Date Total VAT Rate Ex. VAT Receipt VAT Receipt Reason for having no receipt Finance Codes (Account/Service/Product) Project Miles Deductions Vehicle Description The date that the expense was incurred The gross amount being claimed this will include VAT where appropriate. This is automatically provided and cannot be altered This is automatically calculated and cannot be altered Should be ticked if a receipt has been provided. Receipts should always be provided wherever possible Should be ticked if the receipt contains a VAT Number If the Receipt box has been left empty, the employee should enter the reason that the receipt has not been provided The correct codes should be provided for the item being claimed. Where the employee is not sure of the correct codes to use, the employee should ask for clarification from their line manager Where an expense can be associated with a particular project, this field should be completed with the name of the project involved If asked to specify the mileage of a journeybased expense, enter the total number of miles involved with that journey. For rail and tram journey s this should be the distance between the start and end stations Enter any miles relating to Private (non- Business) Travel see the section Business and Private Travel for details If the expense being claimed is mileagerelated, the employee will be asked to specify which vehicle was used for the journey. Vehicles must be added by the employee prior to completing an expense claim October 2014 v2page 13 of 13