Relocation Policy for New Staff 1 Purpose of the policy The School is committed to assisting new staff joining the School with the costs incurred in relocating to the London region. The Relocation Policy (‘the Policy’) aims to help meet the individual relocation needs of a new member of staff. The Policy replaces Removal Expenses loan scheme. If you have any queries about making a claim under the policy please contact the LSE Co-ordinator in the Finance Division. 2 Eligibility for relocation expenses 2.1 The Policy is open solely to new appointments to the School with a commencement date of on or after 5 October 2010 at Salary Bands 5-10 for an initial period of 2 or more years’ duration, (hereafter referred to as “you”). 2.2 For the purposes of this Policy a “Reasonable Travelling Distance” is defined as within a 30 mile radius of the Houghton Street, London WC2 2AE. 2.3 In order to be eligible to make a claim under this Policy your main residence must be located outside of a Reasonable Travelling Distance at the date of issue of your appointment letter, and should move to a new residence that is located within a Reasonable Travelling Distance and is more than 20 miles from your existing main residence. You will be asked to sign a declaration to this effect when making a claim under this policy and the School reserves the right to request evidence to support your declaration. 2.4 If you currently reside outside of a Reasonable Travelling Distance but own, or co-own, a residential property within a Reasonable Travelling Distance, you may not claim Relocation Expenses under this Policy. 2.5 Where the Policy is extended to Dependants, they are defined as your cohabiting spouse or unmarried, civil or same sex, partner, plus your cohabiting dependant children under the age of 19. 3 Timing of claims under the policy 3.1 All claims under this policy must be submitted using the procedure (laid out below in Paragraphs 13 to 16 below) within 6 months (“the Claim Period”) of your commencement of employment with the School. This is to ensure that all claims relate to your relocation, and that claims are made well within the HMRC rules that govern the timing and taxation of relocation payments. 3.2 If you intend to submit a claim for relocation expenses after the expiry of Claim Period you must seek permission by writing to the LSE Co-ordinator before the end of the Claim Period, stating why an extension is required and why the claim could not be made at an earlier date. The LSE Co-ordinator will discuss the extension request with the HR Director and it will be the HR Director’s sole discretion whether to grant such an extension, and the duration of that extension. Claims cannot be made or submitted under any circumstances after 1 year of you commencing your role with the School. 4 What is covered? 4.1 The Policy allows you to choose which relocation costs to claim from your relocation expenses allowance (“the Allowance”). The Allowance is calculated as a maximum figure of £2,000 if your post is graded bands 5-7 inclusive, or £4,000 for posts graded bands 8-10 inclusive, and you are relocating from within the continent of Europe or £3,000 if your post is graded bands 5-7 inclusive, and £6,000 for posts graded bands 8-10 inclusive, and you are relocating from outside of Europe. The Allowance will be pro-rated accordingly for part-time appointments. Any relocation expenditure beyond the Allowance will not be met by the School and will be your responsibility. Cohabiting partners relocating to join the School may only claim for one Allowance for the two partners based on the higher of the two base salaries offered. You may claim any of the following relocation expenditure against the Allowance: (i) Temporary accommodation for a period of up to 6 weeks for you and your Dependants. Temporary accommodation includes staff accommodation booked through the School’s Accommodation office, as well as privately owned accommodation. The Relocation Guidance Notes Pages contain details of how to find out about accommodation options available to new staff, and the booking process. (ii) The cost of packing, transporting, delivering and insuring your household contents from your existing main residence to your main residence located within the Reasonable Travelling Distance. (iii) Storage of your household contents for up to 3 months. (iv) Professional fees incurred in the sale of your existing main residence outside of the Reasonable Travelling Distance and/or the purchase of a new main residence located within the Reasonable Travelling Distance. Professional fees include estate agent fees, surveyor fees, conveyancing fees and stamp duty. (v) Reimbursement of Visa application fees for your Dependants. Visa application fees for Tier 1 and Tier 2 Visas for new staff members are normally met by the HR Department and do not need to be claimed under this Policy as part of your Allowance. (vi) The professional fees incurred on the initial letting of a property on an assured shorthold tenancy, such as letting agency fees, where you are a named tenant and the property will be used as your main residence within the Reasonable Travelling Distance. Security deposits and other refundable deposits related to rental accommodation may not be claimed under this Policy. (vii) The services of a relocation company to manage your move and provide advice on settling in a new area. The LSE Co- ordinator can supply details of relocation companies approved by the School. Please note that some of the services provided by a relocation company may not be included in the tax free relocation category. You may be liable for Income Tax and National Insurance on any School payment or reimbursement for these services. (viii) Single fares by the most economical means in standard class for you and your Dependants to move from your existing main residence to the London area. If return fares are booked the School will meet 50 per cent of the cost of the fare unless you can supply evidence that the return fare was cheaper than a single fare. 5 Removal of household contents 5.1 If you wish to claim for removal of household contents and related insurance as part of your relocation claim you should obtain 3 local quotations for their removal, and supply these to the LSE Co-ordinator. The Co-ordinator will arrange for a further quotation from the School’s corporate remover. Please provide the removal address, contact name (if you are not available) and telephone/fax number to the Co-ordinator who will arrange for the corporate remover to contact you. 5.2 The removal company that supplies the lowest quotation will normally be chosen, unless you have expressed strong reasons to the Co-ordinator to choose another supplier. The removal company invoices will be addressed to, and met by, the School, and will be deducted from your Allowance. 6 Taxation issues 6.1 You should be aware that relocation reimbursements claimed by you, or paid directly by the School in connection with you and your Dependants’ relocation are regarded as a benefit-in-kind and may be subject to Income Tax. The tax free limit for relocation assistance provided to an individual is set and regularly reviewed by HMRC. In exceptional circumstances where a School Department or Division has provided you with additional relocation support beyond the provisions of this Policy, your relocation assistance may exceed the tax free allowance set by HMRC. Relocation expenses claimed beyond this limit may be taxable, although some further tax exemptions may be available if you are joining from overseas. Further details about the tax treatment of relocation payments can be found at www.hmrc.gov.uk/guidance/relocation.htm . Any Income Tax due on relocation payments made by the School will be your liability and may be deducted from reimbursements made under this Policy, or recovered by adjustments to your tax code. 7 Claims procedure 7.1 All claims should be submitted in writing to the LSE Co-ordinator using the Claim Form within the Claim Period. Claims can be submitted as each expense is incurred, or all together, and must include detailed receipts for each claimed item. No payments will be made beyond the limit of your Allowance. 7.2 Claims for reimbursement cannot be made before you commence your role with the School, with the exception of the payment of removal costs (which are paid directly to the supplier and will automatically be deducted from your Allowance) and reimbursement of travel costs to the UK. You must have agreed your start date with the School, and secured confirmation of eligibility to work in the UK, before reimbursement of travel costs and payment or removal costs can be met. 7.3 If you elect to stay in School owned accommodation and wish to claim the cost of this as part of your Allowance please ask the Residences Booking office to invoice the LSE Coordinator direct. 7.4 The School reserves the right to reclaim any accidental overpayments made to you under this policy from your net salary. 8 Repayment of relocation expenses on departure from the School 8.1 If you claim Relocation Expenses under this Policy you are required to reimburse the School for 100 per cent of the expenses claimed if you leave the School within one year of your start date. If you leave between one and two years of joining the School you will be required to reimburse the School for 60% of the expenses claimed. These sums will be deducted direct in equal instalments from your net salary during your notice period, unless alternative payment arrangements are agreed in writing with the HR Pay Team. Any outstanding sums that are not recovered by the School from your net salary by the end of your employment with the School will remain your liability and will be invoiced to you with 15 day payment terms. After this period interest will accrue at the official HMRC interest rate on any outstanding sum. 8.2 If any costs are incurred by the School under this Policy on your behalf, and you do not join the School on the agreed commencement date, these costs will immediately become your liability and will be invoiced to you with 15 day payment terms. After this period interest will accrue at the official HMRC interest rate on any outstanding sum. 9 Moving of work-related equipment/office moves 9.1 This Policy applies only to the removal of personal household contents and does not cover the removal of work related office contents. Individual School Departments may meet the costs of relocating office contents to the School if these contents are regarded as necessary for the effective performance of your role with the School. You should contact your Department Manager to discuss the removal of office related equipment. 10 Interpretation, disputes and exceptions 10.1 Should any uncertainty or dispute arise about the application, extent or interpretation of this Policy, the matter must be referred to the HR Director and the Finance Director (or their proxy) for joint determination entirely at their discretion.
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