Travel and expenses policy

Policy overview

We promote sound financial management strategies to:   

• maintain monetary and financial stability  
• ensure we run the organisation in a financially efficient manner  

The work we do requires active community engagement. This means we may expect employees to travel or host meetings that may incur an expense. This policy sets out the principles and rules for claiming travel and other costs incurred on our business.   

We aim to set out the principles and rules fairly and transparently. This ensures that anyone needing to incur expense can understand:   

• which claims are permitted  
• what steps to take to ensure reimbursement  

Principles  

We may require employees to travel on council business. On occasions, they may require overnight accommodation. Therefore, it is necessary for us to:  

• ensure spending on business travel and accommodation is operationally and economically efficient  
• maximise opportunities to reduce carbon-based emissions of vehicles used for business travel  
• ensure that employees undertaking business travel do so safely and appropriately  

Whilst incurring and claiming expenses, employees must:  

• adopt a responsible and pro-active attitude to reduce risks and costs related to travel  
• balance the benefits of any journey with associated time and cost. Employees must also consider alternatives such as conference calls, video conference, including MS Teams  
• manage bookings appropriately and avoid cancellations and late fees  

When submitting expenses to claim reimbursement, employees must:   

• classify expenses properly  
• submit expenses for approval on time  
• keep and scan receipts for claimable expenses   

A valid VAT receipt must accompany all claims, where applicable.   

Managers must:  

• pre-approve all travel requests with employees before they make arrangements  
• ensure that booked travel complies with all relevant procedures  
• approve requests and arrangements on time  
• ensure that expenses reimbursed comply with the policy    

This policy aims to:  

• ensure a consistent approach for all business travel, accommodation and use of vehicles in connection with the delivery of our services  
• provide business travel and accommodation options   
• state our approach to managing occupational road risk  

Necessity of travel  

We will only reimburse employees for expenses which they incur in the course of their employment.   

Before undertaking any journey, line managers must assess and confirm the necessity of travel. They must ensure the use of the most cost-effective means of travel and accommodation. 

Driving documentation checks

All employees who drive on council business must record details of their driving licence and vehicles on Business World. This verifies that they are legally able to drive for us. 

Employees can log on to check their driving licence details on GOV.uk. 

Employees must confirm, and provide documents to evidence, that they: 

• hold a current driving licence 
• have a current and valid MOT on their vehicle 
• have current road tax on their vehicle 
• have current vehicle insurance cover which includes appropriate business travel 
• declare any health issues that may affect their ability to drive 
• declare any points or convictions received  

For information on driving safety, employees must read G31 driver assessment toolkit. 

Travel by car

When employees have to undertake business travel by car, they have the following options:

Private vehicles

We reimburse mileage for cars, vans and motorbikes in line with:  

• HRMC (Her Majesty's Revenue & Customs)   
• AMAP (Approved Mileage Allowance Payment)   

An additional payment per mile is payable if the driver transports one or more passengers, who would otherwise make the same journey separately.   

As a general principle, journeys in private vehicles are subject to a 100-mile round trip threshold. In exceptional circumstances, staff may use their own vehicle for journeys beyond the threshold. This includes: 

• out of hours  
• already on business travel and continued use of the private vehicle is the most cost-effective option  
• employees who use a modified private vehicle to accommodate their disability  

Employees must have the approval of their line manager.  

For current mileage rates, read about reimbursement of expenses.   

We expect an employee to join the lease car scheme if their business travel requirements exceed 2,000 miles per annum. 

Lease vehicle

Employees with a lease vehicle must use the vehicle for all approved business journeys.  This includes those above the 100-mile threshold.

Find out more details about our lease car scheme on our intranet.

Daily rental vehicle

Employees should book a car using the contract provider where:

• business journeys exceed a 100-mile round trip
• or, they do not have a vehicle available for business use

Fuel cards 

Fuel cards allow eligible employees to refill their authorised company vehicles.  

With a fuel card, employees do not have to seek reimbursement of the fuel cost through the expenses system. 

Employees must contact their line manager to check if they are entitled to participate in the fuel card scheme.   

All employees who are provided with a fuel card must complete a fuel card application.  For further details see our intranet.  

Employees can only use fuel cards to purchase regular unleaded petrol, ULSD and standard diesel. They cannot make other purchases on them. 

Taxis, rail and air travel

Use of taxis 

Employees may only hire a taxi when no other suitable mode of transport is available. They must have the approval of their line manager.  

Rail travel 

All planned rail travel arrangements must be authorised in advance by the appropriate: 

• director  
• assistant director 
• or, head of service

Employees must make these arrangements through their service area business support team. The team will book using the most cost-effective method.  

If an employee has a procurement card, they may use this to purchase the most cost-effective train ticket. They may only buy standard class tickets. 

Air and overseas travel  

All air and overseas travel arrangements must be authorised in advance by the appropriate: 

• director
• or, assistant director  

To make the arrangements, employees must complete the air and overseas travel request form. 

The authoriser must inform the relevant portfolio holder of the planned air travel.   

Bookings should be made by procurement card. The employee should retain a copy of the authorisation. The service area business support team will assist with these arrangements.

Reimbursement of mileage

Employees will be reimbursed for miles travelled for work in accordance with:

• total mileage incurred in the day, in excess of their home to contractual work base return journey

or

• all mileage for a journey between their normal workplace and a temporary workplace
• all mileage for a journey between one temporary workplace and another temporary workplace
• mileage calculated using the "lesser rule" for a journey between their home base and a temporary workplace

The "lesser rule" applies when it is fewer miles for an employee to travel from their home rather than their work base to a 'temporary' workplace. Employees can claim for the lesser of either:

• home to a "temporary" workplace
• or, normal workplace to a "temporary" workplace

Mileage claims for business travel must be submitted on time using the online expenses system or paper forms.  Employees must submit a detailed breakdown of mileage incurred for approval by their manager.  They must include scanned copies of valid VAT receipts for all expenses including fuel if VAT is applicable.

Reimbursement of expenses

Employees must claim legitimate expenses through our usual reimbursement procedure. These can include: 

• car park charges 
• bridge tolls 
• public transport (bus, tram, tube) 
• private taxi use 
• fuel for daily rental vehicles  

They must have prior management approval and submit receipts.   

Travel and subsistence rates 

1. Mileage rates (HMRC-approved rates, inclusive of electric vehicles) 

2. Passenger rate  

5p per mile for the carriage of one or more passengers who are council employees.  

3. Cycle rate  

73p per day (£3.65 per week) 

4. Reimbursement for meals and overnight stays 

Meal costs, as a general rule, are the responsibility of the employee. However, if an employee expends more than they would usually, then we will reimburse additional expenditure. Employees must have prior line management approval and submit receipts.

All overnight accommodation must be authorised in advance by the appropriate: 

• director  
• or, assistant director 
• or head of service 

Employees must make these arrangements through their service area business support team. The team will book using the most cost-effective method. 

Employees must agree expenses in advance with their line manager for: 

• any cost of meals where an overnight stay is required 
• any further out-of-pocket expenses

5. Training and development 

We may reimburse fees and expenses incurred during training and development as per the: 

• HMRC List 3 
• our learning and development policy 

These must have prior approval from the line manager. 

Daily rental guidance

Vehicle selection 

Employees should hire the smallest appropriate car to perform the duty required.   

They should choose Category C or smaller for passenger journeys. Category C is a compact 4-door vehicle (for example, a Citroen C4, Ford Focus or equivalent).  

The hirer’s line manager must approve all exceptions supported by a business need. For example, the provision of an automatic transmission or MPV for carrying more than three passengers. 

Lynx hand controls for lower-limb disability are available from the supplier upon request. 

Use of vehicle 

Vehicle hire is considered official vehicle use for business purposes only. Any use of hire vehicles for private purposes is not allowed. This applies: 

• before the start of the hire (for example, using a vehicle when it is dropped off the evening before the hire date)  
• after the end of the hire 

Insurance cover is only in place for the duration of the actual hire. Employees cannot use hire vehicles to pursue private interests or activities. Insurance cover is not valid for these purposes. 

Payment 

We make payments for vehicle hire centrally. We use a corporate payment card for vehicle hire made with our contracted provider. This allows us to consolidate them in a single account. 

At the point of booking, the hirer must provide their cost centre and employee number. This allows internal reconciliation of the payment to the correct budget. 

The journey from home to work 

We do not allow the use of hire cars for normal travel from home to work and vice versa. This would constitute private use of an official vehicle.  

We allow hire cars to be driven home or returned to work if the start or end of the business journey is:  

• early in the morning 
• or, late in the evening 

Length of hire 

We allow car hire for the minimum possible period required. This helps us to minimise costs. Line managers should consider a short-term lease for any hire requirement for over three months. 

One-way hire 

One-way hires can minimise the length and cost of the hire, where appropriate. For example, a week-long training course could require only two one-day hires; One day to travel to the course, and a second booking for one day to return from the course. In this instance, the total hire charges will be for two days rather than five. 

Authorisation requests 

Employees need approval for each new booking. They should make their line manager aware before making a booking, except in urgent circumstances. In these cases, retrospective notification to line managers is acceptable. 

Drivers should have their copy of the rental agreement signed by their line manager.  The agreement is provided when the car is delivered. The line manager must also sign the agreement following the hire and keep it for 12 months after the rental. We may check these signed agreements. 

Bookings for vehicles of category D and larger must have pre-journey consent from the line manager. This will take the form of an email automatically generated by the supplier’s booking system.  

The manager will receive the option to decline the hire. If they do not decline it by the time of the booking, it will be authorised. This is to avoid instances of vehicle non-delivery.   

Record of journey 

It may be necessary for the employee to provide details of the business journey to HMRC. They must demonstrate that there has been no private use of the vehicle.  

We advise employees to keep a record of each journey. This must include the reason for and details of the journey, plus the mileage travelled. This is the same as the information recorded on a travel expenses form. A travel expenses form is for when an employee uses their own vehicle on business.   

If an employee cannot evidence the journey was for business use, HMRC may assess there was a taxable car benefit. The employee should keep this information for three years. 

Insurance 

Insurance is in place to cover vehicle hire by our staff. A hire car for business purposes cannot be covered by personal insurance. Non-council staff are not insured to drive hire vehicles. 

Pick-up and return service 

The hire company offers a free pick-up and return service. They will pick up the driver and take them to the depot to collect the hire car, and then drop them back off after the hire. This will avoid collection and delivery charges and should be used when convenient for the driver.  

Fuel 

The car hire company will deliver vehicles with a full tank of fuel. This is under the contract service level agreement.  

To avoid additional charges, drivers should refill the tank before returning the vehicle. Additional charges for the hire company to refill the tank are significant. These charges are 30 pence per litre on top of the pump price for the fuel.  

Drivers can reclaim the total costs of refuelling the vehicle through:  

1. the online expenses system 
2. the paper-based expenses system 

Drivers should keep fuel receipts for this purpose.  

Out-of-hours delivery charges 

The vehicle hire company office hours are 8am to 6pm, Monday to Friday, and 9am to Noon on Saturdays. 

Requests for vehicles outside of these hours will incur an additional charge of £10. Drivers can avoid this by: 

• arranging to collect a vehicle 
• or, having a vehicle delivered at the end of the previous working period. For example, if a journey is to start at 6am, collect the car at 5.30pm the previous evening. 

Review of charges 

The central business support purchasing and facilities team will reconcile: 

• payment card transactions  
• consolidated invoice data   

The transactions are transferred into Business World against the cost centre provided at the point of booking.  

The team will raise any discrepancies identified during this process with: 

• the supplier (for example, charged days and agreement days do not match) 
• or, the vehicle user (for example, invalid cost centre provided).  

Budget holders will also have visibility of these transactions. They have a responsibility to check transaction activity in their area is appropriate.   

Sustainability  

We are committed to reducing CO2 levels. This policy promotes activities to achieve any of our targets.  

Duty of care  

Managers and drivers should be aware of their responsibilities in the use of daily rental vehicles. This is set out in this policy. They must also ensure that they actively comply with: 

• the provision and checking of driving licences 
• the process for authorisation of bookings 
• the refuelling of vehicles prior to return  
• the use of vehicles for business purposes only 

In addition, drivers should ensure that they: 

• familiarise themselves with the vehicle before beginning the journey. This includes location or position switches for lights, windscreen wipers and washers, handbrake and fuel filler cap. 
• keep within speed limits and obey road signs 
• plan journeys, allowing extra time for breaks and unforeseen delays 
• do not drive for too long without a break or whilst fatigued

Telephone and office allowances

Employees may be entitled to have telephone and office allowances if:  

• they are contractually a homeworker

This does not apply to working from home as part of smarter working.

Entitlements must reimburse employees for expenditure properly incurred in the course of their duties.   

Where we provide mobile telephones for reasons outside this scheme, the same provisions will apply for personal use. For example, due to health and safety, lone working etc. 

Office allowances 

We will make provision within a band of 3 and 4.5 square metres. This is the estimated maximum and minimum space required to accommodate an employee.   

The employee's manager will determine how much space is needed depending on the requirements of the job. This will take into account health and safety needs.  

Rates 

The rate applied in each case will depend on:  

• the amount of space required for safe storage  
• the use of work materials and equipment 

To claim this office allowance, employees can use the form on our intranet. 

Telephone allowances 

Where a decision has been made to provide a telephone, it will be within the following options:  

• a telephone line in the employee's home. They can use this for business purposes only. We will reimburse the cost of line rental and calls.  
• a mobile phone. They can use this for personal calls within the arrangements specified by the director of resources. For more details, read: 
  • Mobile Phones – Health and Safety Advice 
  • the health and safety employee leaflet POEL24 
• Where a work phone is not considered necessary, we will reimburse the cost of business calls on an employee's own phone. 

Smarter working homeworking equipment allowance

We will offer up to £100 per person every three years to purchase office equipment for use at home for example:

• smaller (non-standard) desk
• lamps
• blinds
• heaters or fans
• costs of additional broadband (including set up)

During 2021-22 financial year, employees may claim an additional £100. If employees have not claimed in 2020-21, they can claim up to £200 in 2021-22. In exceptional circumstances where the line manager accepts that a specific piece of equipment is required at home, for example a folding desk (where space is an issue), an additional £100 may be added to the existing allowance.