HUMAN RESOURCES POLICY / HRP 010
Title: / Relocation Policy
Author(s): / HR Policy Officers
Sponsor: / Director of Human Resources
Endorsed by: / Director of Human Resources Date: September 2005
Implementation date: / 17 October 2005
Review date / 20 April 2010
Application / All Swindon Borough Council employees
This document replaces: / Relocation Policy – August 2004
Introduction
The aim of the scheme is to provide financial recompense to employees who need to move their main residence to take up an appointment with Swindon Borough Council. This scheme does not cover the purchase of a second property.
The scheme includes:
· 100% of removal costs, plus storage for up to 6 months, based on the lower of two quotes. DIY removals will attract vehicle hire and fuel costs.
· If temporary accommodation is required, a maximum payment of £165 per week, for up to 6 months.
· Weekly travel home costs for up to 6 months
· Legal and estate agents’ fees including stamp duty
· Up to £750 for adaptations in the home
· Two days paid leave to seek a new home
· A limit of £8,000 for relocation expenses
Eligibility
i) The decision to offer relocation will be made prior to the post being advertised, with Directors having discretion to offer relocation. Relocation expenses limited to below £8,000 may be offered but this should be stated when the post is advertised.
ii) Candidates must establish their eligibility for relocation allowance at the time of their appointment.
iii) The scheme is limited to one member of each household. No payment will be made to an employee whose partner or other member of the household has already obtained employment in the area and has been eligible to receive financial assistance from another source. Where the payment received from the other source is less than the maximum payable under this scheme, consideration may be given for re-imbursement of elements of expenditure that fall within the remit of this scheme, by agreement of their Director.
iv) An employee applying for relocation assistance is required to declare on the Relocation Expenses Indemnity Form – RE1 the amount of relocation expenses/assistance if any that is being received by other members of the family/household from another source. A false declaration is a disciplinary offence that could lead to summary dismissal.
v) Employees taking up their first appointment with Swindon Borough Council will qualify for consideration of a relocation allowance provided that:
· At the time of appointment the employee does not reside within a 20-mile radius of their new work place and arising from the appointment, the employee is moving to a main residence.
· The employee relocates their main residence to within a 20-mile radius of their new work place in order to carry out their duties. Directors have the discretion to vary this distance if it enables a prospective employee to relocate.
· The employee must certify that removal has occurred solely as a result of the appointment and would not otherwise have occurred.
· Any expenses paid under this scheme must be incurred before the end of the tax year (5th April) following the one in which employment started.
So if an employee starts their job;
On 18 March 2005, they have until 5 April 2006 to use their exemption
On 2 September 2005, they have until 5 April 2007 to use their exemption.
Application of the Scheme
Expenses will relate to the employee personally and his or her direct dependants previously resident with him or her and will cover normal household effects and furniture.
Tenants of rented properties will not be eligible for all payments. If an employee is buying their first home then assistance will not be given towards legal and estate agents fees.
Assistance will be granted on the assumption that an employee relocates their main residence and after appointment makes a serious effort to secure appropriate permanent accommodation as soon as is reasonably practicable.
Reimbursement is conditional upon the employee producing all the necessary official quotations, VAT invoices and original receipts for any expenses incurred. The Council is able to recoup any VAT amounts paid on receipt of full VAT registered invoices and original receipts, therefore these should be submitted to the Council for payment. Employees will be required to complete the Relocation Expenses Claim Form – RE2.
Removal Expenses
i) The full amount of removal expenses, including insurance in transit, will be refunded based on the lower of two quotations from recognised contractors.
ii) Where an employee chooses to carry out a removal on his or her own behalf; refund will be restricted to the reimbursement of vehicle hire and fuel.
iii) Expenses arising from a removal from temporary accommodation or storage to permanent accommodation will be reimbursed only if incurred within 12 months of appointment.
iv) The cost of a single journey at standard rail fare rate or relocation mileage rate in respect of the employee and his/her direct dependants resident with him or her will be refunded in connection with any necessary removal.
v) The Council will accept the full cost of any necessary storage of normal household effects and furniture for a period not exceeding six months based on the lower of two official quotations.
Temporary Accommodation
i) There is a possibility that the council is able to provide temporary accommodation from its own housing stock, which is usually unfurnished and could be located anywhere in the borough. Employees pay rent equal to the public rate for the council property provided, there is no preferential rate for employees. The council will only reimburse rent on the accommodation and not Council Tax and Utilities.
ii) Temporary accommodation may be secured for up to six months with the agreement of the Director. The council may make a contribution to the additional cost of the accommodation only, up to a maximum of £165 a week for up to six months.
iii) During a period of up to six months from appointment when an employee is necessarily separated from his or her family, return standard rail fare or relocation mileage rate will be refunded in respect of the employee’s journey home once every week.
iv) Deposits to rent accommodation will not be paid.
The above provisions are subject to the written agreement of the Director who may extend the periods mentioned where there are extenuating circumstances.
Legal and Estate Agent Charges
The cost of legal, estate agents, advertising, mortgage and survey fees attributable to the sale of the former property and purchase of a new property as a result of the appointment are refundable.
Disturbance/Settling in Allowance
The cost of the necessary adaptation of furniture, fittings and carpets are refundable up to a maximum of £750. This does not apply to portable items such as sofas, televisions etc. Original receipts must be provided.
Limit
The Council has set a limit of £8,000 for relocation expenses; this will be reviewed on an annual basis. The Director may extend the limit mentioned where there are extenuating circumstances and a written agreement is required with the Director completing the Relocation Expenses Limit Form – RE3.
Overseas
No expenses will be paid for travel or transportation of people or goods other than from the United Kingdom. Employees moving from overseas shall be required to produce separate tenders for costs incurred after disembarkation on the mainland.
Search for Accommodation
The employee may be granted up to two days additional paid leave, if necessary, following the date of appointment for the purpose of searching for new accommodation.
Tax and National Insurance Implication
Under current Inland Revenue regulations the first £8,000 (including VAT) of any relocation expenses provided by an employer is exempt from tax and National Insurance Contributions. If the total exceeds the council’s limit of £8,000 due to extenuating circumstances the excess is subject to tax deductions under the Inland Revenue benefits in kind (P11D) arrangements, which the employee has to pay.
Termination of Service
An employee accepting any of the allowances provided for under this scheme is required to complete a Relocation Expenses Indemnity Form – RE1. An employee who ceases employment voluntary with the council within 3 years of appointment is liable to repay the assistance granted under this scheme.
· 100% if employee leaves within 24 months of commencement
· 60% if employee leaves after 24 months but within 36 months of commencement
Process for Claiming Relocation Expenses
1. Director agrees that relocation is available and the limit prior to post being advertised.
2. Employee confirms their eligibility for relocation when appointed.
3. The HR Service Centre will send Inland Revenue Guidance on “Income Tax and National Insurance Contributions on Relocation Packages” to employee together with Relocation Policy and appendices.
4. Before any expenses are paid, employee completes Relocation Expenses Indemnity Form – RE1 and return to HR First Response.
5. Employee receives quotes for removal or storage and send to HR Service Centre.
6. Employee completes Relocation Expenses Claim Form – RE2 on an on-going basis, attached with original VAT receipts and invoices and sends to HR First Response. Claims not supported by original receipts or invoices cannot be paid except for travel allowance where the employee has used a private vehicle.
7. Payments will be processed by BACS payment.
Related Guidance, Policies and Statement / Mortgage Subsidy SchemeInland Revenue Guidance “Income Tax and National
Insurance Contributions on Relocation Packages”
Contacts: / For more information on this policy and related guidance please
Contact the HR First Response on extension 4343: