Finance Guidance Letter 58-2004

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Letter 58/2004
Date issued: 1 April 2004

Status: Mandatory

Effective date: 1 April 2004

Destroy date: Effective until withdrawn or revised

Travel and Subsistence Guide
Addressed to:

Council Members
Committee/Working Group Clerks
All Staff


This Finance Guidance Letter (FGL) sets out the LSC’s policy and current expense
rates. This FGL will be appended in the future with revisions to rates and any further
clarification or interpretation of policy.


This FGL replaces previous issues of expenses information. Please withdraw from
circulation FGL 20/2001 and FGL 43/2002. Finance teams and line managers are
requested to ensure that old versions of travel and subsistence guidance are
withdrawn and that the changes are understood and applied.

For Clearance

This Guidance Letter has been developed in conjunction with the Inland Revenue
and relevant National Office functions.

Jim Minogue
Financial Policy Team
National Office, Coventry
Tel: 024 7649 3935

Page 1 of 21                                  FGL 58/2004: Travel & Subsistence Guide
Executive Summary

There are significant changes in this issue of the travel and subsistence guide that
need to be brought to the attention of all staff. The main issues are:

        Authorisation and Responsibility

               Amendment to the authorisation process for Senior Management, Chairs
               and Council Members is set out in section C.

        Different Modes of Travel

               The Inland Revenue has approved the mileage rates currently being used
               and these are in section D.

               A clear definition of business mileage, which has been agreed with Inland
               Revenue, is introduced which all employees should now adopt. An
               allowance has also been made for some special circumstances when the
               mileage may be taxable

               Travel sections have been introduced or enhanced: employees without
               own transport; driver responsibility; overseas travel; congestion and toll
               charges; travel by non-employees;

               The LSC has mandatory contracts with Enterprise Car Hire Ltd for the
               booking of all hire cars and Lonsdale Travel Ltd for the booking of all travel
               (rail, air, overseas)

        Subsistence and Incidental Expenses

               The daily >12 hour subsistence rate has been reduced to £13.55 as a
               result of Inland Revenue requirements

               Colleagues who stay with friends are now able to claim a £5 incidental
               allowance in addition to the £25 staying with friend’s allowance; however,
               the £21 overnight subsistence allowance is not claimable. This change is
               required by Inland Revenue in order to continue to offer this as a tax-free

               A new section which cross references the travel and subsistence guidance
               with the Hospitality Received and Gifts (FGL 52/2002) and Hospitality (FGL
               51/2002) guidance is introduced

        Mobile Phones – Personal Call Allowance

               The LSC has a national contract with Vodafone for all mobile phones. A
               new paragraph refers to the reimbursement for all personal calls in excess
               of £15 in any three-month billing period

Page 2 of 21                                        FGL 58/2004: Travel & Subsistence Guide

               The LSC has a mandatory national contract with EBR/Bedfare Ltd for the
               booking of all accommodation


               A revised travel and subsistence claim form is available on the LSC’s
               Intranet under Survival Guide, LSC Forms.

Page 3 of 21                                      FGL 58/2004: Travel & Subsistence Guide

Page 4 of 21          FGL 58/2004: Travel & Subsistence Guide

A              INTRODUCTION                                                             6

B              CATEGORIES OF CLAIMANTS                                                  6
               • Staff (including those with TUPE rights)
               • Council, Committee and Working Group Members
               • Third Party Individuals (non-employees)

C              AUTHORISATION AND RESPONSIBILITY                                         7

D              DIFFERENT MODES OF TRAVEL                                         8-14
               • Home to Office Travel
               • Business Mileage
               • Special Circumstances
               • Travel by Private Car/Motor Cycle
               • Travel by Employee without own Transport
               • Travel by Lease Car
               • Travel by Pool Car
               • Travel by Hire Car
               • Driver Responsibility
               • Travel by Taxi
               • Travel by Rail
               • Travel by Air
               • Overseas Travel
               • Emergency Travel
               • Congestion and Toll Charges
               • Travel by non-employees

E              SUBSISTENCE AND INCIDENTAL EXPENSES                              14-16
               • Subsistence
               • Day Subsistence
               • Overnight Subsistence/Staying with Friends and
                 Relatives/Incidental Expenses
               • Hospitality and Hospitality Received and Gifts
               • Gratuities

F              MOBILE PHONES – PERSONAL CALL ALLOWANCE                              17

G              ADVANCES                                                             17

H              ACCOMMODATION                                                    17-18
               • Booking Accommodation
               • Long-term Stays

I              ANNEXES                                                          19-21
               • Expense Claim Procedure
               • Flow Chart

Page 5 of 21                                  FGL 58/2004: Travel & Subsistence Guide


        The purpose of this Finance Guidance Letter (FGL) is to provide colleagues
        with detailed guidance on the correct procedures to follow when claiming
        travel and subsistence from the Learning and Skills Council (the LSC). This
        FGL covers:

               •   Categories of Claimants
               •   Authorisation and Responsibility
               •   Different Modes of Travel
               •   Subsistence and Incidental Expenses
               •   Mobile Phones – Personal Call Allowance
               •   Advances
               •   Accommodation
               •   Annexes covering procedures and proformas

        Please note it is the responsibility of claimants and budget holders to ensure
        that the most practical and cost-effective method of travel has been used and
        to ensure that the policy regarding travel and subsistence claims is adhered


        There are three categories of persons entitled to claim reimbursement of travel
        and subsistence costs. These are:

               •   Staff (including those with TUPE rights) – for expenses incurred when
                   staff travel away from their normal place of work during the course of
                   their employment

               •   Council, Committee and Working Group Members – for expenses
                   incurred whilst travelling to meetings, interviews or other events

               •   Third party individuals (non-employees) – for expenses incurred as a
                   direct result of involvement with the LSC such as interview candidates
                   or non-employees attending meetings.

        All claimants should follow the same procedure set out below.

        Staff (including those with TUPE rights)

        The LSC will reimburse staff for all reasonable expenses necessarily incurred
        in the performance of their duties, such as mileage, rail fares and
        accommodation. There are special rules regulating specific types of claims
        and these are set out below. Consideration should always be given to
        using the most practical and cost effective method of travel.

Page 6 of 21                                       FGL 58/2004: Travel & Subsistence Guide
        Please note that where staff are still subject to TUPE protected terms and
        conditions they must follow the expenses policy and reimbursements rates
        which the TEC, DFES or FEFC used where contractual, in all other instances
        the LSC rate will be used. If an individual is claiming TUPE rates, it must
        clearly be indicated on the top of the expense form.

        Council, Committee and Working Group Members

        The basic procedure and travel and subsistence claim form is the same for
        employees, Council, committee and working group members. Council,
        committee and working group members are entitled to claim the same mileage
        rate and subsistence allowances as employees.

        Third Party Individuals (non-employees)

        A separate claim form is available for use by third party individuals such as
        interview candidates or non-employees attending ad hoc or random meetings.


        All staff, Council or working group members must submit expense claims
        within one month from the completion of a journey or expenditure incurred to
        an approved signatory for authorisation. Where a claimant is an authorised
        signatory, the immediate line manager or a more senior person must approve
        the claim.

        It is the responsibility of the authorised signatory to validate the claim
        and to ensure that the amounts claimed are justifiable, represent value
        for money and are coded correctly.

        The authorisation process for Senior Management, Chairs and Council
        Members is set out below:

                      Claimant                       Authorised By
         Local Council Members                       Local Chair
         Executive Directors                         Local Chair
         Local Chair                                     Regional Director
         National Chairman                           National Director of Finance
         Regional Finance Directors                  National Director of Finance
         Chief Executive                             National Chairman
         National Council Members                    Chief Executive
         National and Regional Directors             Chief Executive
               where the Regional Director is also the Executive Director of the LLSC concerned, the
               Chair’s travel and subsistence claim should be authorised by the National Director of

Page 7 of 21                                         FGL 58/2004: Travel & Subsistence Guide

        Home to Office Travel

        Colleagues are responsible for the cost of all travel between their home and
        normal place of work. Costs relating to such journeys should not be included
        in claims for business travel expenses, however such journeys may include an
        element of taxable excess travel allowance.

        Employees who are entitled to an excess travel allowance will have been
        notified by their HR function. Excess travel allowances must only be claimed
        on a Taxable Expenses Form.

        Business Mileage

        The calculation of business mileage is based upon a radius of up to and
        including five miles (5-mile radius) from the normal place of work.

        For the purposes of calculating business mileage the following definitions

        Normal Place of Work – The office where the employee is permanently based.

        Home – The address where the employee lives in order to attend the normal
        place of work. Thus temporary accommodation or weekday accommodation
        will be classified as home for this purpose.

        Journeys from home to anywhere within a 5-mile radius are regarded as
        normal commuting and the normal home to office journey must be deducted to
        derive the business mileage. Journeys from within a 5-mile radius to home
        are also treated this way.

        Journeys to/from home to anywhere outside of this radius are wholly treated
        as business journeys.

        Journeys within a 5-mile radius that start or finish at the office are business

        Journeys starting at the office, other than to home, are business journeys.

        Special Circumstances

        Emergency Call Out

        Emergency call outs, which require a home to office journey, will be
        reimbursed at grossed up expense rates and then paid through the payroll
        system. A taxable expense claim is required.

Page 8 of 21                                     FGL 58/2004: Travel & Subsistence Guide
        Evening and Weekend Events

        The LSC may require an employee to attend an event outside normal office
        hours. Business mileage will normally be payable but in some cases the
        Inland Revenue may deem that the journey undertaken is ordinary commuting.
        Where a required out of hours journey is deemed to be ordinary commuting it
        will be reimbursed at grossed up expense rates and then paid through the
        payroll system. A taxable expense claim is required.

        Travel by Private Car/Motor Cycle

        LSC mileage rates are based upon the current Inland Revenue rates for the
        relevant mode of transport (private motor car, motor cycle, pedal cycle),
        engine capacity and number of miles travelled within any tax year.

        Additional allowances are available for carrying LSC employees as
        passengers in private, pre-contract or lease cars.

        Mileage claims must be rounded to the nearest whole mile. The mileage
        rates, as shown below, are effective from 1 April 2004 and are all tax-free.

        Private Cars
              Category           Higher mileage rate       Lower mileage rate for
                                   for travel under          travel over 10,000
                                     10,000 miles                   miles
        Cars and Vans any                 40p                        25p
        engine size.
        Passenger                     2p for first passenger, 1p for any extra
        Supplement                                   passengers

        Motor Cycles
                   Category                               Any mileage
        Any engine size.                                      24p

        Pedal Cycles
                   Category                               Any mileage
        All Pedal Cycles                                      20p

        Public Mileage Rate                        23p per mile

        Lease Car Rate                             11.5p per mile

        Travel by Employee without own Transport

        Staff travelling with a third party driver who is not an LSC employee may claim
        the public mileage rate of 23p per mile provided this is lower than the cost of
        using public transport. Employees who choose to do so must ensure that the
        vehicle is insured for business use as the liability for any incident will rest with
        the third party driver and NOT the LSC.

        Where colleagues have mobility problems budget managers should discuss
        with the individual the most practical mode of transport for them.
Page 9 of 21                                     FGL 58/2004: Travel & Subsistence Guide
        Travel by Lease Car

        Drivers of lease cars are entitled to a fuel only rate of 11.5p for business miles,
        which is applicable to cars of all fuel types. Drivers of lease cars can also
        claim the passenger supplement as set out in the table above. If the lease car
        is off the road and a temporary car is required, the temporary car should be
        hired from the LSC’s approved contractor (Enterprise Car Hire Ltd).

        Travel by Pool Car

        Pool cars are currently held by some local LSCs for shared business use by
        drivers travelling to/from the office. Pool cars are diminishing and it is NOT
        the intention of the LSC to renew a fleet of pool cars in the future.

        Line managers must check the status of a driver’s licence before allowing
        them to use a pool car.

        No mileage allowances are paid. Any costs incurred by drivers whilst utilising
        the vehicle will be reimbursed at cost through the travel and subsistence
        system, subject to the provision of receipts.

        Under no circumstances should pool cars be used for personal purposes
        (taken to an employee’s home address).

        Travel by Hire Car

        The LSC has a new national contract with Enterprise Car Hire Ltd for the
        provision of car hire. ALL car hire should be booked through this route.
        For more information, please refer to “Car Hire User Guide – LSC National
        Contract Enterprise Rent-a-car 01 October 2003”

        Before choosing to utilise a hire car the costs of using public transport (bus,
        tube, rail) or private vehicle must be considered. However, it is recognised
        that there will be circumstances where the hire of a car is more appropriate,
        for example where it is more cost effective than using a private vehicle and
        claiming mileage. This point is for local discretion.

        Due to the charges made by the car hire company for refuelling, drivers must
        refill the car with petrol or diesel upon termination of their journey and before
        returning the vehicle. This expenditure may be reclaimed through the usual
        expense claim procedure and a VAT receipt should be obtained.

        Driver Responsibility


        All drivers must note that any parking, road traffic fines, congestion charge
        fines or penalties incurred are their personal responsibility and will not be
        reimbursed by the LSC.

        Privately Owned Vehicles
Page 10 of 21                                    FGL 58/2004: Travel & Subsistence Guide
        Drivers should ensure that their own private motor insurance policy is
        comprehensive and that they are insured for business use as the driver is
        personally liable for any incident and NOT the LSC. Drivers will be expected
        to make a declaration on all travel and subsistence claims stating that the
        insurance policy complies with these requirements and also to confirm that
        they hold a valid driving licence. Employees not holding the appropriate
        insurance should use public transport or a hire car for business trips, subject
        to the approval of a line manager.

        Lease Cars

        It is the responsibility of drivers using lease cars to ensure that they are
        maintained in accordance with the manufacturers’ instructions and meet all the
        requirements of the Road Traffic Act. If a lease car is off the road and a
        temporary car is required, the temporary car should be hired from the LSC’s
        approved contractor (Enterprise Car Hire Ltd) in the normal way.

        Pool Cars

        Drivers should check that the pool car meets all the requirements of the Road
        Traffic Act prior to driving it.

        Travel by Taxi

        Use of public transport (bus, tube or train) is encouraged and should be used
        wherever possible. However, it is recognised that the use of a taxi may in the
        following circumstances be the most effective mode of transport:

        •   where equipment or heavy baggage is being carried
        •   when no public transport is available, especially when travelling early in the
            morning or late at night, when public transport is not running or running
            only irregularly
        •   when a member of staff is pregnant or has a temporary or permanent
        •   where personal or financial security is an issue
        •   when it is important to save official time
        •   when in an unfamiliar area and uncertain about public transport.

        Travel by taxi should be kept to a minimum and may NOT be used for long

        Claimants should obtain a receipt from the taxi driver to substantiate their
        travel and subsistence claim and clearly state the reason for use of a taxi on
        the form.

        Wherever possible the claimant should obtain the prior approval of an
        authorised signatory before using a taxi to avoid any potential problems when
        claiming reimbursement.

Page 11 of 21                                    FGL 58/2004: Travel & Subsistence Guide
        Travel by Rail

        The LSC has a mandatory national contract for rail travel with Lonsdale Travel
        Ltd. Colleagues are encouraged to pre-plan journeys and to travel at specified
        times, where possible, in order to take advantage of special deals.
        Colleagues should note that the purchase of open tickets is the most
        expensive option.

        The LSC’s intranet will be linked to the Lonsdale Internet site where journeys
        can be requested on-line. Lonsdale Travel Ltd will seek to offer colleagues
        the most cost effective journey.

        For information, please refer to “Rail and air user guide – LSC National
        contract Lonsdale Travel Ltd 01 October 2003”

        For all journeys, colleagues will be expected to travel standard class. Only in
        exceptional circumstances and at the discretion of Local, Regional or National
        Directors can colleagues travel first class. In such cases budgetary authority
        should be obtained in advance.

        Travel by Air

        The LSC has a mandatory national contract for Air Travel with Lonsdale Travel

        Where it is the most cost-effective method of travel, or operational
        requirements dictate, colleagues may opt to travel by air. In such
        circumstances, colleagues are encouraged to take advantage of special deals.

        All UK domestic flights booked should be in economy class. However, it is
        recognised that in certain circumstances first/business class may be
        necessary where an individual is accompanying a third party. If these
        circumstances arise, prior approval should be sought.

        For information, please refer to “Rail and air user guide – LSC National
        contract Lonsdale Travel Ltd 01 October 2003”

        Overseas Travel

        All overseas travel must be approved in advance. The Chief Executive has
        delegated authority to Local, Regional and National Directors who will be
        responsible for approving all foreign travel (Chief Executive’s Update, issue
        number 43, July 2003).

        The LSC has a national contract with Lonsdale Travel Ltd for all air travel and
        overseas assistance such as travellers’ cheques.

        For more information, please refer to “Rail and air user guide – LSC National
        contract Lonsdale Travel Ltd 01 October 2003”

Page 12 of 21                                  FGL 58/2004: Travel & Subsistence Guide
        Short-term Overseas Travel

        Claimants on short-term overseas visits will be reimbursed based upon actual
        expenditure incurred for travel, accommodation and subsistence. Receipts
        must be provided.

        Long-term Overseas Travel

        Inland Revenue approval of subsistence rates will be required in instances
        where claimants are posted overseas on a long-term basis. Colleagues
        should seek guidance from the Financial Policy Team if such an instance


        As the LSC cannot provide any insurance cover for claimants travelling
        overseas, the onus is on the traveller to take out the appropriate insurance.

        Emergency Travel

        Where colleagues have to travel unexpectedly and the timescale is less than
        one day the traveller should meet the necessary costs and claim
        reimbursement through the usual expense claim procedure.

        Congestion and Toll Charges

        The LSC will reimburse drivers for congestion and toll charges incurred
        subject to production of receipts, and toll charges where receipts are not
        available. For congestion charges, the LSC will only reimburse expenditure
        incurred at the daily rate so the onus is on the driver to ensure that payment is
        made before the deadline of 10pm when the charge increases.

        Travel by non-employees


        Non-employees are people who are not employed by the LSC, although they
        may be required to attend meetings that relate to the LSC’s business. This
        would include private business clients, facilitators and consultants. Expenses
        should only be claimed via an official invoice, which may include other fees
        and charges. The mileage rate claimable is 23p per mile unless a different
        rate is pre-agreed with the LSC under the terms of the contract.


        Non-employees attending interviews are allowed to claim mileage at the public
        mileage rate of 23p per mile or public transport costs. Accommodation
        allowances may only be claimed if they have been pre-approved with the
        interviewing panel and the budget holder. Guidance on allowable interview
        expenses is given within the Recruitment Policy and is available on the LSC’s
        Intranet, Survival Guide, A-Z, Recruitment and Selection.

Page 13 of 21                                   FGL 58/2004: Travel & Subsistence Guide

        Staff seconded to the LSC from external organisations may be reimbursed
        using the LSC’s mileage rates set out above unless other rates have been
        pre-approved as part of a contract.

        Agency Staff

        Agency staff should claim for any costs incurred through the agency and NOT
        through the LSC’s travel and subsistence route.



        Subsistence rates are paid to cover additional costs such as meals that may
        be incurred whilst working away from the normal place of work. They are only
        payable where travel time in excess of 45 minutes (one way) is required or the
        work location is more than five miles away from the normal place of work. The
        subsistence rates are effective from 1 April 2004.

        Subsistence rates do not include the cost of accommodation.

        Receipts are not required if claiming fixed subsistence rates but are required
        in other circumstances.

        The LSC will not reimburse claimants for the cost of alcohol for whatever

        Day Subsistence

        There are fixed rates payable for 5, 10 and 12-hour absences from the normal
        place of work as set out in the table below.

        Day Subsistence Rates

         Absent over 5 hours                                 £4.25
         Absent over 10 hours                                £9.30
         Absent over 12 hours                                £13.55

        Day subsistence is not claimable for the same 24-hour period that night
        subsistence is claimed. It must be emphasised that these allowances are a
        proxy for the reimbursement of expenditure incurred. These allowances are
        not claimable when no expenditure has been incurred, such as
        attendance at meetings, conferences or training courses where meals
        are provided.

        This principle of only claiming relative to the incurrence of expenditure is
        illustrated by the following examples.

        •   If you are away for over 10 hours but are given a meal you may only claim
            the 5-hour rate of day subsistence.
Page 14 of 21                                    FGL 58/2004: Travel & Subsistence Guide
        •    If, during a 24-hour period away on official business your lunch is provided,
             but not dinner, you must deduct £4.25 from the normal overnight
             subsistence rate of £21.00. The rate you should therefore claim is £16.75,
             plus £5 incidental expenses.

        •    If, during a 24-hour period, your dinner is provided, but not lunch, you must
             deduct £14.05 (evening meal element) from the normal overnight
             subsistence rate. Your claim is therefore £6.95 plus £5 incidental

        It is possible to claim day subsistence after claiming night subsistence. Night
        subsistence rates covers a full 24-hour period. There may be instances where
        there is a balance of time remaining for which you may claim day subsistence.
        Please see the examples set out below which help to illustrate such instances.

        Example 1
        You live and work in Coventry but are required to work in London for a week.
        Your 24-hour cycles of night subsistence begin at 7.30am on the morning you
        leave Coventry. On the Friday you go into the London Office for the morning
        then set off for home eventually arriving in Coventry at 7.00 pm. Your night
        subsistence allowance will have ceased at 7.30 am but you may claim at the
        over 10-hour rate for the remaining 11.5 hours.

        Example 2
        You leave home at 7.00 am for a business trip involving an overnight stay.
        You arrive back at your office at 2.00 pm the next day. The overnight
        allowance ran until 7.00 am on the day of your return so you are also entitled
        to the over 5-hour allowance to cover the period prior to your return to the

        Overnight Subsistence/Staying with Friends and Relatives/Incidental

        This allowance is intended to cover the extra cost involved in spending nights
        away from home on official business. The rates are set out in the table below.

        Overnight Subsistence, Staying with Friends and Relatives/Incidental Expense

            Overnight subsistence allowance                       £21.00
            Staying with friends or relatives                     £25.00
            Incidental expenses                                    £5.00

        Overnight Subsistence

        The overnight subsistence allowance of £21 covers a 24-hour period as

                    •   £4.25 for lunch
                    •   £14.05 for an evening meal
                    •   £2.70 for local travel expenses.
Page 15 of 21                                     FGL 58/2004: Travel & Subsistence Guide
        The overnight allowance of £21 is only claimable by staff choosing to stay in
        hotel accommodation.

        Where breakfast is not included in the cost of overnight hotel accommodation,
        the cost can be reimbursed upon production of receipts. Failure to take the
        provided breakfast does not give an entitlement for reimbursement of any
        subsequent subsistence.

        Staying with friends and relatives

        Travellers who choose to stay overnight with friends or relatives are entitled to
        claim an overnight allowance of £25. Where a person is claiming the staying
        with friends or relatives allowance, they are not entitled to also claim the £21
        overnight allowance. Details of the name and address of friends/relatives
        must be provided when claiming the £25 overnight allowance.

        Local travel costs to and from the place of residence are also claimable,
        providing that the overall cost of the stay to the LSC does not exceed the cost
        of hotel accommodation.

        Incidental Expenses

        Staff can also claim a fixed rate incidental expenses allowance of £5 in
        addition to either the overnight allowance or the staying with friends and
        relatives allowance. This allowance is designed to cover small items of
        personal expenditure incurred on overnight stays such as telephone calls or

        Hospitality and Hospitality Received and Gifts

        Employees may claim for hospitality expenses incurred for certain items such
        as working lunches. In addition, there are procedures for hospitality received
        and gifts. Please refer to “Finance Guidance Letters FGL 51/2002” and
        Finance Guidance Letters FGL 52/2002”.


        Gratuities are treated by the Inland Revenue as discretionary costs not
        necessarily incurred during the course of business. Gratuities will be treated
        as a taxable benefit if they are given and then reclaimed and, as such, the
        LSC will not reimburse the cost of gratuities. However, service charges
        included within the overall cost of a meal are acceptable and will be
        reimbursed as part of the usual expense claim.


        Staff members must reimburse the Council for all personal calls in excess of
        £15 in any three-month billing period. The Council has a national contract for
        mobile phones with Vodafone. Please refer to “Learning and Skills Council
        mobile phone policy and procedure”

Page 16 of 21                                   FGL 58/2004: Travel & Subsistence Guide

        It is not the policy of the LSC to grant advances in respect of travel and
        subsistence although loans for season tickets may be obtained.

        In exceptional circumstances, including TUPE entitlements, advances in
        respect of travel and subsistence expenses may be granted to members of
        staff with the approval of the National Director of Finance. (An exceptional
        circumstance may be the requirement for junior staff to travel away from home
        at short notice).

        No advance should be outstanding for longer than one month after completion
        of the journey or incurring expenditure for which the advance was made.
        Please note that the offer of an advance is conditional upon acceptance of a
        potential salary deduction. Any advance outstanding after more than one
        month may be deducted from an employee’s salary without prior notification.


        Booking Accommodation

        The LSC has a mandatory national contract for hotel and conference bookings
        with EBR/Bedfare Ltd. For more information, please refer to “Hotel and
        conference booking user guide – LSC National Contract EBR/Bedfare Ltd 01
        October 2003”

        The policy for overnight stays is that the traveller should arrange
        accommodation through the designated booking agent (EBR/Bedfare Ltd).

        Colleagues may stay in 3 or 4 star accommodation according to local
        availability or a bed and breakfast alternative. Travellers are reminded of the
        need to demonstrate value for money and reasonableness of expenditure
        when selecting accommodation. Colleagues should use the LSC’s preferred
        supplier of EBR/Bedfare Ltd for booking all overnight accommodation.

        Whilst the pricing policy for hotel bookings is £100 per night outside major
        cities and £130 per night inside major cities, colleagues should always seek to
        choose less expensive accommodation if possible. Five star hotels may
        only be booked as part of an overall conference package where the
        invoice is payable to the conference organiser.

        Colleagues are reminded that because of the entitlement to fixed allowances,
        the cost of evening meals and personal expenditure such as telephone calls or
        alcoholic drinks should not be included within the bed and breakfast costs.
        The cost of personal expenditure should be identified separately as invoices
        with consolidated expenses items will not be allowed. The individual is
        responsible for these costs and must seek reimbursement through the fixed
        subsistence and incidental allowances.

        Long-Term Stays

Page 17 of 21                                   FGL 58/2004: Travel & Subsistence Guide
        Colleagues seconded to or by the LSC on detached duty, whose expenses
        are being reimbursed directly by the LSC, are only entitled to a maximum of
        30 nights hotel accommodation. After this point the expenses entitlement is
        for a weekly accommodation allowance as set out below.

                London      £160 per week
                Elsewhere   £155 per week

        This allowance covers bed and breakfast accommodation or rental of suitable
        accommodation. The accommodation allowance is still paid for periods such
        as holidays when the recipient is not in residence but expenditure is still

        No other subsistence allowances are claimable.

Page 18 of 21                                 FGL 58/2004: Travel & Subsistence Guide
                                                                                    Annex A


The basic procedure and expense claim form is the same for employees; Council
members and working group members entitled to claim expenses. Individuals not
employed by the LSC should not use the LSC’s travelling and subsistence claim form
although they may be entitled to the same rate of expenses as employees. In these
cases they should submit an invoice for the expenses or a cheque request should be

These procedures, although comprehensive, cannot cover all situations. Further
information, or advice and guidance on interpretation of these procedures, may be
obtained from your local Finance team or the Payments Team at the National Office
of the LSC.

How to Complete the Expense Claim Form

    •   If this is your first claim please ensure you have completed an Authorisation
        and Payment Details form “E-01 Authorisation and Payment Details for
        Travelling and Subsistence”.

    •   Please use “E-02 Travel and Subsistence Claim” when claiming expenses.

    •   The revised travel and subsistence guide has been designed for electronic
        completion and provides details of current mileage and subsistence rates.

    •   Do not enter taxable expenses such as excess travel on this form as these will
        have to be paid through payroll. A separate procedure applies.

    •   Print your full name and, for employees, your location and department.
        Please also add your full telephone number so that you can be contacted in
        case of any query relating to your claim. Delete as appropriate employee /
        Council member / working group member.

    •   Some individuals permanently transferred to the LSC may have had expense
        rates embodied within their transferred terms and conditions of employment.
        This will not happen in every case but where these rates contractually apply
        the individual must write ‘TUPE Rates’ at the top of the expense claim.

    •   Enter the details of the journey undertaken or expenditure incurred. Where
        applicable the local finance team will show the VAT amount separately from
        the gross expenditure on goods or services (please remember to include VAT
        receipts). Always include the start and end time of your journey. This may
        affect the level of subsistence that you are claiming.

    •   Persons claiming mileage should ensure that they include the mileage
        previously claimed and paid during the current tax year, including mileage
        from previous employments. A reduced mileage rate is payable on mileage
        above10,000 miles, as from 6 April in any one tax year.

Page 19 of 21                                  FGL 58/2004: Travel & Subsistence Guide
    •   Mileage should be claimed to the nearest mile.

    •   The amount of any advance should be shown as a separate deduction from
        the total cost of the journey leaving a net amount to be claimed.

    •   If any errors are made in the completion of the form, they should be struck
        through with a single line and initialled. Correcting fluid must not be used.

    •   If the details of the journey for which you are claiming do not fill the page,
        please cross through the unused lines with a diagonal line. This prevents
        something being added after you have signed the form.

Attach Receipts

Appropriate original detailed VAT receipts and/or invoices must be attached as
substantiation of expenditure incurred. Where receipts are not available, such as for
tube fares, toll charges, etc, the reason for their non-availability should be given.
Credit card vouchers should not be submitted. A proper VAT receipt should be
obtained at the time of purchase.

Obtaining Payment

The claim form should be passed to an authorised signatory for approval. Out-posted
staff must first obtain a line manager’s signature if the authorised signatory is based

To avoid subsequent changes the authorising signatory should pass the form to the
Finance Team for processing in accordance with the procedure below.

Payments Charter

Travel and subsistence claims will be paid in accordance with the Payments Charter
which states: ‘T&S claims that the office receive will be processed and paid within 10
working days of receipt of the claim, provided the claim has been correctly coded and
authorised prior to receipt.’

All payments to employees, Council members and working group members will be
made by BACS direct into the claimant’s designated bank account, details of which
are set out on the completed E-01 Authorisation and Payment Details form. The
onus is on the claimant to ensure that the details on this form are amended and
submitted to the Finance Team if bank account details are changed.

Page 20 of 21                                    FGL 58/2004: Travel & Subsistence Guide
        Flow Chart – Travel, Subsistence and Incidental Expenses

                           Complete Appropriate Claim
                             Form (E-02 Travel and
                            Subsistence Claim Form)

                                 Sign & Date

                                                                 Complete Bank
                                 Approval by                   Details Form (E-01
                                 Authorised                    Authorisation and
                                 Signatory                      Payment Details)

                                Send Form to
                                Service Centre

                                   Within 5
                                 Working Days

                                  Payment to
                                 Bank Account
                                   by BACS

Page 21 of 21                              FGL 58/2004: Travel & Subsistence Guide