Relocation Expenses Scheme

Employment Policies, Procedures & Guidance

Relocation Expenses Scheme

Chief Executive, Directors & Head of Service Posts

1.Applicability

1.1The Authority’s Relocation Expenses Scheme is applicable to new appointees to the post of Chief Executive, all Directors, and Head of Service posts.

1.2The reimbursement of relocation expenses is restricted to employees who are required to move because they are taking up or have already taken up a new appointment with the Authority and move their home within a reasonable commuting distance to their work location.

1.3The expenses will be paid if incurred within a period of 18 months from the date of taking up the appointment.

2.The Scheme

For the purposes of reimbursement, the scheme will cover:

2.1Removal Expenses

The cost of removing furniture and household effects from the employee’s old residence to new (including transfers to and from one temporary residence if necessary), including insurance of goods in transit. Reimbursement for each stage of removal will be limited to actual removal costs, not exceeding the lower of two competitive tenders, and subject to a maximum of £2,000 in total.

2.2Home Search

For the purpose of finding a residence, travelling expenses and subsistence allowances for the employee and partner or dependant relative, if he or she accompanies the officer for one visit of up to 5 days including travelling time.

Travelling expenses to be at public transport rates (second class, if rail) or the current appropriate casual car user rates, if by car, whichever is actually incurred. Travelling expenses and subsistence allowances (for one journey only) for the employee and members of his/her household from his/her old residence to the new at public transport rates (second class, if rail) or the current appropriate casual car user rates if the whole family travels by car, whichever is actually incurred. (See note 1 and the rates below).

451-999cc / 1000-1199cc / 1200-1450cc
First 60 miles / 36.4p / 40.2p / 49.9p
Subsequent miles / 10.6p / 11.3p / 12.8p
Or actual cost of 2nd class rail travel.

Subsistence allowance £79.82 per day (maximum of 1 visit, of up to 5 days) for the Officer and a partner/dependant relative.

2.3Storage Costs for Furniture and Effects

Any necessary cost of storage of furniture and effects for a period not exceeding six months, where a permanent move cannot be made immediately. Reimbursement will be based on actual costs that must not exceed the lower of two competitive tenders.

2.4Temporary Accommodation

An employee who has to maintain two houses whilst in the process of relocating to a permanent location will be granted an allowance towards the cost of the temporary accommodation. The allowance will consist of twenty-six weeks at bed/breakfast (£79.82) and dinner allowance (£8.38) rates, based on a five-day week. A total allowance of £88.20.

2.5Legal and Other Fees

The employee will be reimbursed the following fees connected with the sale of his/her present residence and the purchase of a new residence, the total reimbursement not to exceed £8,000. The payment is not an allowance but reimbursement for costs actually incurred:

Legal, estate agents and mortgage fees necessarily incurred by the sale;

Legal, mortgage and survey fees incurred by the purchase.

2.6Disturbance Allowance

The employee will be granted a disturbance or settling-in allowance of 4% of the maximum salary of the Principal Officer’s Range. From April 2003 the allowance is £1,437.36

2.7Commuting Assistance

For those having to commute for more than 100 miles from the Civic Centre a weekly commuting assistance based on the appropriate mileage rate or second class rail fare whichever the lesser, for up to 26 weeks.

The appropriate mileage rates for commuting assistance are the middle band of the essential car user allowances (31.5 pence per mile) and for lease cars the petrol element (7.363p per mile). They apply to the total mileage incurred on a return journey.

2.8Paid Leave

The employee will be allowed two days paid leave when moving his/her home.

2.9Refund of Relocation Expenses

The reimbursement of removal and other expenses will be subject to an undertaking from the employee to refund payments made to him/her should he/she leave the employment of the Authority within a period of two years from the date when his/her appointment commenced, such refund to be proportional to that part of the two year period remaining after his/her resignation.

NOTE 1

The appropriate casual car user rate for journeys of over 60 miles payable by the City Council is:

a)for the first 60 miles - the appropriate casual user rate for the size of the car.

b)additional mileage - payable at the approved casual user rate, over 8,500 miles band, appropriate to the cubic capacity of the car.

Relocation Expenses Scheme

NOTE 1

The appropriate casual user rate for journeys of over 60 miles payable by the City Council is:

(a)for the first 60 miles - the appropriate casual user rate for the size of the car.

(b)additional mileage - payable at the approved casual user rate over 8,500 miles band, appropriate to the cubic capacity of the car.

2.3Storage Costs for Furniture and Effects

Any necessary cost of storage of furniture and effects for a period not exceeding six months, where a permanent move cannot be made immediately. Reimbursement will be based on actual costs which must not exceed the lower of two competitive tenders.

2.4Temporary Accommodation

An officer who has to maintain two houses whilst in the process of relocating to a permanent location will be granted an allowance towards the cost of the temporary accommodation. The allowance will consist of:

(a).Eight weeks at bed/breakfast (£36.04) and dinner (£7.64) allowance rates, based on a five day week. A total allowance of £43.68

(b).Five further weeks at the lodging allowance (£96.74) rate applicable to transferred officers, as prescribed by Appendix E of the Scheme of Conditions of Service for A.P.T. & C. Staff.

2.5Legal and Other Fees

The officer will be reimbursed the following fees connected with the sale of his/her present residence and the purchase of a new residence, the total reimbursement not to exceed 10% of the maximum salary of the Principal Officer’s Range, £3593.4

Legal, house agents and mortgage fees necessarily incurred by the sale; up to 10% of the maximum allowable being reimbursed for actual advertising costs incurred if house agents are not engaged, £359.34

Legal, mortgage and survey fees involved by the purchase.

2.6Disturbance Allowance

The officer will be granted a disturbance or settling-in allowance equal to 4% of the maximum salary of the Principal Officer’s Range. (£1437.36)

2.7Paid Leave

The officer will be allowed two days paid leave when moving his/her home.

2.8Refund Of Relocation Expenses

The reimbursement of removal and other expenses will be subject to an undertaking from the officer to refund payments made to him/her should he/she leave the employment of the Authority within a period of two years from the date when his/her appointment commenced, such refund to be proportional to that part of the two year period remaining after his/her resignation.

NOTE 2

Officers who have to sell existing property located more than 100 miles away and who move to a residence within the City Boundaries will be entitled to the following additional benefits:

Legal Fees: A revised maximum of £4,500 will apply instead of £3,040 and will also cover stamp duty. This payment is not an allowance but re-imbursement for costs actually incurred.

Temporary Accommodation: In place of the temporary accommodation allowance specified on page 2, an allowance will be paid for an extended period of up to 26 weeks in total at daily bed/breakfast and dinner allowance rates based on a 5 day week.

Commuting Assistance: Weekly commuting assistance based on the appropriate mileage rate or second class rail fare whichever the lesser, for up to 26 weeks.

The appropriate mileage rates for commuting assistance are the middle band of the essential car user allowances and for lease cars the petrol element. They apply to the total mileage incurred on a return journey.

Appendix 1 Guidance Note to Relocation Expenses Scheme

Tax and National Insurance Implications

Introduction

The purpose of this guidance note is to outline the tax and NI implications of the Council’s Relocation Scheme. Further guidance is available from the City Treasurer.

Tax and National Insurance Implications

If the Council helps employees to move home then any payments made are treated as part of the employee’s earnings for tax and NI contributions.

Exemption

The first £8,000 of qualifying expenditure incurred however, is exempt from tax and NI contributions if certain conditions are met.

Employees qualify for the exemption if:

1.They have to move home to:

Take up a new job with a new employer

Take up a new job with their existing employer

Continue their current job but at a new location, and

2.Their existing home is not within reasonable daily travelling distance of their new workplace, and

3.The home they move to is within reasonable daily travelling distance of their new workplace, and

4.Their expenses are reimbursed by the Employer.

Disturbance Allowance

The Disturbance Allowance paid under the Scheme will not qualify for exemption.

All cases will be considered on the individual circumstances of each case.

Time Limit

There is a time limit for getting tax relief. To qualify, the expenses must be incurred, or provided before the end of the tax year following the one in which they start the new job. The timescale may be extended at the discretion of the Inland Revenue if, for example, the employee could not sell their existing home within the timescale.

In determining whether an employee’s home is within reasonable daily travelling distance, factors such as time, geographical location and accessibility of the location, may be taken into account. It is ultimately, however, for the Inland Revenue to determine whether the tax exemption will apply based on the individual circumstances of each case.

2.2.3Relocation of Expenses Scheme March 2005 Page 1

Relocation Expenses Scheme

Relocation Expenses Scheme

Chief Executive, Directors & Head of Service Posts

Other Posts

NOTE 1

NOTE 2

Appendix 1

Guidance Note to Relocation Expenses Scheme

Exemption

Disturbance Allowance

Time Limit