Expenses

Introduction

This document sets out the company’s policy in relation to expenses that you may incur during your duties as an employee of the company. The company will allow the employee to claim expenses that are incurred wholly, exclusively and necessarily in the performance of your employment duties.

The company’s intention is that employees should not lose or gain financially during the performance of their employment duties. The company will allow the employee to claim any personal expenses.

Employees are expected to adhere to these guidelines and behave with honesty and integrity when making a claim for business expenses.

Employees will use Navan (either cards, or the platform) to record purchases, and to submit the relevant receipts to verify any expenditure , in line with this expense policy.

Deadline for expenses

All expenses must be completed in Navan within 30 days of incurring the expense. Failure to do so may lead to your expenses not being reimbursed (if made on any personal cards), or your Navan card being frozen temporarily. If expenses are not fully completed within 60 days then :

Income tax and National Insurance Contributions (NIC)

Any expenses incurred wholly, necessarily and exclusively during your employment duties should not give rise to an income tax charge. Additionally no NIC liability should be incurred in respect of these expenses. The company currently uses the bench mark scale rates as set by HMRC for subsistence.

You must retain evidence that a meal has been purchased whist on company business. You must fulfil the criteria set by HMRC in order to claim these expenses. These are detailed as follows;

Receipts must be retained and submitted to support each expense claim where the supplier can reasonably be expected to provide a receipt, detailing VAT as appropriate, except where this policy provides for an allowance to be paid (for example see subsistence expenses).
A simplified VAT receipt will be issued by a retailer where the goods or services do not exceed £250.

The VAT invoice should contain the following information;

Supplier’s name, address and registration number
Time goods and services are supplied
Description sufficient to identify the goods or services supplied
Total amount payable, including VAT and
The rate of VAT chargeable and the gross amount payable, including VAT together with the VAT applicable to each item or service provided.

Credit card vouchers and statements, or photocopies alone are insufficient for the purpose of receipting.

Where business mileage is claimed, your claim must be supported by VAT receipts for fuel purchased in the same month (but not prior to the commencement or following the termination of your employment)

Amounts incurred in foreign currency should be converted and claimed on GBP using the rate of exchange at the date the expenditure was incurred.

Mileage Claims

You may claim a mileage allowance if you use your own vehicle for travelling to and from a temporary work place (see detailed guidelines at Appendix 1 for the definitions of a temporary work place).

Your expenses form must show the following details;

The reason for the journey
The date of travel
The number of miles travelled for each journey

As detailed above, you must provide VAT receipts to cover fuel used on the business journeys claimed.

If you are NOT in receipt of a Company Car Allowance as part of your remuneration package, business mileage can be claimed at HMRC’s Approved Mileage Rates. The current rates per mile are as follows:

	First 10,000 business miles in the tax year	Each business mile over 10,000 in the tax year
Cars and Vans	45p	25p
Motor cycles	24p	24p
Bicycles	20p	20p

PLEASE NOTE: for those people who have a fancy new electric car - these mileage rates apply for both electric and petrol/diesel cars

An additional 5p per business mile for any additional passengers may also be claimed for carrying others employees of PCI Pal in a car or van on journeys which are also work journeys for them. Your expense claim form must include details of the passenger’s name(s).

PLEASE NOTE: the mileage rates include the variable costs of operating a vehicle, such as the cost of gas, oil, tires, maintenance and repairs, as well as the fixed costs of operating the vehicle, such as insurance, registration and depreciation or lease payments. You cannot claim for mileage and fuel costs.

If you ARE in receipt of a Company Car Allowance as part of your remuneration package, business mileage can be claimed at HMRC’s Approved Mileage Rates. The current rates per mile are as follows:

	First 10,000 business miles in the tax year	Each business mile over 10,000 in the tax year
Cars and Vans	20p	20p
Motor cycles	10p	10p
Bicycles	20p	20p

Note also that you will be able to make a claim on your annual tax return for the difference between the HMRC Approved Mileage Rates and the rates claimed from the company. This is because you have already paid tax on your Company Car Allowance via the monthly payroll.

You may only use a private vehicle for business purposes if you have fully comprehensive insurance cover, to specifically include use for business journeys. The company may ask to see a copy of your insurance and MOT certificates and registration documents.

Other travel

Other travel costs in relation to business journeys can be claimed where the mode of transport is the most appropriate and/or cost efficient and where the workplace is temporary (see Appendix 1) for example, ferry, rail, air, bus, taxi and tube costs can be claimed.

Parking costs (but not fines), congestion charges and tolls can be claimed.

Your expenses claim form must show the following details;

The reason for travel
The date of travel

Receipts must always be provided.

Taxis should only be used where necessary and where given the overall cost of the journey, use of taxi is the most economical form of transport.

Only the standard daily congestion charge can be reclaimed, provided it is incurred whilst travelling on company business. The company will not pay any additional costs, where the driver omitted to pay the standard charge.

Subsistence

Subsistence expenses can be claimed when it is necessary to work away on company business, but only where the workplace is temporary (see detailed guidance at Appendix 1).

All subsistence claims must correspond to a business journey, whether or not a travel expense claim is made in relation to that journey. This means that the expenses must be incurred on the day of travel only and not in advance.

You must be purchasing prepared meals and not the components of a meal. I.e. a prepared sandwich would be allowed but bread and filling obtained as part of a weekly shopping trip would not be allowed.

Your expense claim must show the following detail;

The date for which subsistence is claimed
The temporary work place location
If claiming breakfast, the time leaving home
If claiming late evening meal, the time of arriving at home or other place of overnight accommodation.

The Company will allow all reasonable subsistence claims that must be proportionate and reasonable. A breakfast allowance cannot be claimed if you normally leave home before 6am. Similarly the late evening meal rate cannot be claimed if you normally return home after 8pm and can only be paid after you have worked a full day.

Overnight accommodation

Where you are working and staying away at a temporary workplace you may claim the reasonable cost of overnight accommodation. Receipts must be provided showing the full name, address, telephone number, and VAT number of the business and where possible should be on the business’ headed paper.

Overnight accommodation – Rental Agreement

The company will allow claims for the cost of renting a property at the temporary location provided that the property was rented for the purpose of the employment. You must submit the original signed rental agreement and ensure all claims are only made in relation to costs associated and incurred during the working week. Prior written permission of the CEO will be required before the Company will agree to meet this expense.

Training Costs

The company will allow claims for work related training costs. This includes not only direct job related training but also training in health and safety and to develop leadership skills. This is part of a tax exemption which also includes learning materials, exam and registration fees. Travel and associated subsistence incurred whilst attending the course can be claimed. It is often difficult to determine if a particular training course will be tax exempt. Before committing to the course, please contact ask a director for advice. See also the Training and education policy.

VDU Eye Test

Please see the Display Screen Equipment policy.

Professional Subscriptions

The company will allow claims for the cost of annual subscriptions or fees to certain professional bodies where the company considers that membership of the organisation in question will enhance your effectiveness in performing your duties, or where it is a requirement of the profession that you are a member in order to perform the duties of the employment.

The professional body must be included on HMRC’s approved list which can be found at www.hmrc.gov.uk/list3/index.htm

Agency Expenses

Expenses reimbursed to you by an agency cannot be claimed a second time from the Company.

Appendix 1:

Temporary Workplace Travel expenses, associated subsistence costs and accommodation can only be claimed if your workplace is a temporary workplace (a place where you have to attend to carry out your duties of employment for a limited duration or temporary purpose).

A temporary workplace is a workspace at which you will not spend an excess of 24 months in one location. As a result, it is likely that you will be able to claim travel and associated expenses between your home and each temporary location.

Your workplace will not be temporary in the following circumstances and as a result you will not be able to claim travel expenses. The period that you work at the location lasts for more than 24 months. This should include any time working at the location for another employer immediately prior to the commencement of your current employment and time taken for holidays while placed at the location.

If initially you do not expect to work at the workplace for more than 24 months and the expectation changes such that you will attend the workplace for more than 24 months, the workplace will be a permanent workplace from the date that your expectations change. Travel and subsistence expenses attributable to that work place cannot be claimed from that date.

You expect to work at the same location for the entire duration of your employment with the Company (even if it’s for a period of less than 24 months).

The workplace is named as your place of work in your contract of employment.