Travel and expenses policy

Policy overview

We promote sound financial management strategies to:   

• maintain monetary and financial stability  
• ensure we run the organisation in a financially efficient manner  

The work we do requires active community engagement. This means we may expect employees to travel or host meetings and therefore incur additional expenditure whilst understaking the duties of their job.

This policy sets out the principles and rules for claiming travel and other expenses incurred on our business to ensure that employees are not placed at a financial disadvantage when working for the Council, nor gaining a financial advantage from their work

Therefore it is important that anyone needing to incur and/or approve expense can understand:   

• which claims are permitted  
• what steps to take to ensure reimbursement  

This policy aims to:  

• ensure a consistent approach for all business travel, accommodation and use of vehicles in connection with the delivery of our services 
• provide business travel and accommodatiob options 
• state our approach to making occupational road risk 

state our approach to managing occupational road risk  

Principles  

We may require employees to travel on council business. On occasions, they may require overnight accommodation. Therefore, it is necessary for us to:  

• ensure spending on business travel and accommodation is operationally and economically efficient  
• ensure that employees undertaking business travel do so safely and take the most appropriate and sustainable method of transport, co-ordinating travel, where possible to keep the number of separate car journeys to an absolute minimum
• ensure that the Council safeguards against fraud and excessive spending on expenses

 Whilst incurring and claiming expenses, employees must:  

• adopt a responsible and pro-active attitude to reduce risks and costs related to travel  
• balance the benefits of any journey with associated time and cost. Employees must also consider alternatives such as conference calls, video conference, including MS Teams  
• manage bookings appropriately and avoid cancellations and late fees  

When submitting expenses to claim reimbursement, employees must:   

• obtain prior approval for expenses
• ensure that expenses are claimed under the correct expense type.  NB. When claiming Home Equipment Expenses refer to Overtime/Variable Pay on Business World
• submit expenses on time to ensure these can be reviewed and approved by the required Expenses deadline 
• submit claims no more than 3 months after the expenditure has incurred.  Retrospective claims over three months old will not be reimbursed (except under exceptional circumstances such as long-term sickness and with approval from Head of Service or above)
• Receipts for claimable expenses must either be uploaded to Business World at the same time as the claim or if claiming via a paper form be shown to the approving manager (refer to Appendix 1 VAT Receipt – Non-VAT Receipt), otherwise your claim will be rejected    
• Receipts must be retained for a period of 6 years after the end of the tax year to which they relate to (Financial payments – Lincolnshire County Council).  

Where a claim that has been submitted and approved results in an overpayment the Council will always attempt to recover this as quickly as possible as per the Overpayment recovery process – Purpose - Lincolnshire County Council

Managers must:  

• pre-approve travel and accommodation requests with employees before they make arrangements and ensure the use of the most cost-effective means.   
• ensure that booked travel complies with all relevant procedures  
• approve requests and arrangements on time  
• ensure that expenses are accurate, a valid receipt is attached to the claim and they comply with the policy (refer to Appendix 1 VAT Receipt – Non-VAT Receipt)    

Driving documentation checks

Driver Documentation checks

All employees who drive on council business and meet the occupational driver criteria must record and upload details of their vehicle(s) and Driver Documentation on Business World. This verifies that they are legally able to drive for us. 

Driver Documentation : Service Desk

Driver Documentation (staff with no access to Business World) : Service Desk (freshservice.com)

Employees must confirm, and provide documents to evidence, that they: 

• hold a valid driving licence for the UK and correct classification for the vehicle(s) driven for work - employees can log on to check their driving licence details on GOV.uk. 
• have a valid MOT certificate or confirmation their vehicle is less than 3 years old
• have valid vehicle insurance cover which includes Class 2 or 3 ‘business use’
• have valid road tax on their vehicle 
• declare any health issues that may affect their ability to drive
• declare any points or convictions received  

For information on driving safety, employees must read and complete the Driver Assessment Toolkit (DAT) Programme 

Travel by car

When employees have to undertake business travel by car, they have the following options:

Private vehicles

We reimburse mileage for cars, vans and motorbikes in line with:  

• HRMC (Her Majesty's Revenue & Customs)   
• AMAP (Approved Mileage Allowance Payment)   

An additional payment per mile is payable if the driver transports one or more passengers, who would otherwise make the same journey separately.   

As a general principle, journeys in private vehicles, including those where employees lease a vehicle through the Tusker Car (salary sacrifice) Scheme are subject to a 120-mile round trip threshold. In exceptional circumstances, staff may use their own vehicle for journeys beyond the threshold. This includes: 

• out of hours  
• already on business travel and continued use of the private vehicle is the most cost-effective option  
• employees who use a modified private vehicle to accommodate their disability  

Employees must have the approval of their line manager.  

For current mileage rates refer to Reimbursement of Expenses

Where eligible employees have a car through the Tusker Car (salary sacrifice) Lease Scheme refer to Tusker Mileage Rates

Lease vehicle through Car Contract Hire Scheme

Employees with a lease vehicle must use the vehicle for all approved business journeys.  This includes those above the 120-mile threshold.

For employees who have a Lease Car please refer to Car Contract Hire Scheme 

Daily rental vehicle

Employees should book a car using the contract provider where:

• business journeys exceed a 120-mile round trip
• or, they do not have a vehicle available for business use

For further information refer to Daily vehicle hire 

Fuel cards 

Fuel cards allow eligible employees to refill their authorised company vehicles.  

With a fuel card, employees do not have to seek reimbursement of the fuel cost through the expenses system. 

Employees must contact their line manager to check if they are entitled to participate in the fuel card scheme.   

All employees who are provided with a fuel card must complete a fuel card application.  For further details see Fuel Card Policy and Procedure

Employees can only use fuel cards to purchase regular unleaded petrol, ULSD and standard diesel. They cannot make other purchases on them. 

Taxis, rail and air travel

Use of taxis 

Employees may only hire a taxi when no other suitable mode of transport is available. They must have the approval of their line manager.  

Rail travel 

All planned rail travel arrangements must be authorised in advance by the employees line manager and Budget Manager 

Employees can make these arrangements through their service area Business Support Team. The team will book using the most cost-effective method.  

If an employee has a procurement card, they may use this to purchase the most cost-effective train ticket. They may only buy standard class tickets. 

Rail fare should only be reimbursed through the expenses process in exceptional circumstance with line management approval.

Air and overseas travel  

All air and overseas travel arrangements must be authorised in advance by the appropriate: 

• director
• or, assistant director  

To make the arrangements, employees must complete the Air and Overseas Travel Request Form 

Bookings should be made by procurement card. The employee should retain a copy of the authorisation. The service area Business Support Team can assist with these arrangement.

Reimbursement of mileage

Employees will be reimbursed for miles travelled for work in accordance with either:

Normal commute deduction

• total mileage incurred in the day, in excess of their home to contractual work base return journey

or

Lesser Rule

• when employees travel to a temporary workplace directly from home and it is fewer miles to travel from their home rather than their work base to a 'temporary' workplace.

Employees can therefore claim for the lesser distance of either:

• home to a "temporary" workplace
• normal workplace to a "temporary" workplace

Appendix 2 provides a Mileage Claim Table that shows when the Lesser Rule versus deduct normal commute mileage applies.

Claiming Mileage

Mileage claims for business travel must be submitted on time to ensure these can be reviewed and approved by the Manager and by the required Expenses deadline.  In completing the online expenses system or off-system forms a detailed breakdown of mileage incurred including postcodes of start and end addresses should be provided.

• Where an employee claims mileage via Business World scanned copies of valid fuel VAT receipts must be uploaded when claiming for petrol, diesel and hybrid cars.  NB. HMRC does not currently require employees with electric vehicles to provide VAT receipts when claiming mileage 

The file size of the document cannot exceed 2MB.  Adding a receipt to Business World can be found in both the Guidance Video (Vb6) and documents (Submitting an expense claim) on the below page:

How Employess With Acess To Business World Can Enter Expenses

• Where an individual does not claim mileage via Business World an off-system form must be submitted along with a copy of the receipt(s).

The date on the VAT receipt must reasonably precede, or match, the date of the journey, within a maximum of 2 months and one VAT receipt can cover multiple trips.

 Retrospective claims over three months old will not be reimbursed (except under exceptional circumstances like long-term sickness and with approval from Head of Service or above)

Reimbursement of expenses

Employees must claim legitimate expenses through our usual reimbursement procedure.

How employees with access to Business World can enter expenses

How employees without access to Business World can enter expenses 

Employees must have prior management approval and submit valid receipts.  (Refer to Appendix 1 VAT Receipt – Non-VAT Receipt).   

Expenses can include: 

• bridge tolls 
• public transport (bus, tram, tube) 
• private taxi use 
• fuel for daily rental vehicles  
• car park charges 
• Employees undertaking any council‑related journeys that require parking on council property—whether a single journey or multiple journeys within the same day—must ensure they have valid parking authorisation for every period the vehicle is parked. Where Pay & Display (P&D) machines are used, a current ticket covering the full parking duration must be purchased and clearly displayed at all times.

Retrospective claims over three months old will not be reimbursed (except under exceptional circumstances like long-term sickness and with approval from Head of Service or above

Travel and subsistence rates 

1. Mileage rates (HMRC-approved rates, inclusive of electric vehicles) 

2. Passenger rate  

5p per mile for the carriage of one or more passengers who are council employees.  

3. Cycle rate  

73p per day (£3.65 per week) 

4. Reimbursement for meals and overnight stays 

Meal costs, as a general rule, are the responsibility of the employee. However, if an employee expends more than they would usually, then we will reimburse additional expenditure. Employees must have prior line management approval and submit valid receipts.

Claims cannot be made where a suitable meal is provided either by the Council or a third-party providing hospitality.

The Council will not reimburse expenditure for alcoholic drinks.

All overnight accommodation must be authorised in advance by the employee’s line manager and Budget Manager.

Employees must make these arrangements through their service area Business Support Team. The team will book using the most cost-effective method. 

Employees must agree expenses in advance with their line manager for: 

• any cost of meals where an overnight stay is required 
• any further out-of-pocket expenses

5. Training and development 

We may reimburse fees and expenses incurred during training and development as per the: 

• HMRC List 3 List of approved professional organisations and learned societies (List 3) - GOV.UK
• our learning and development policy 

These must have prior approval from the line manager. 

Daily rental guidance

Vehicle selection 

Employees should hire the smallest appropriate car to perform the duty required.   

They should choose the most economically viable Category Car suitable for the journey, category B, or D cars such as Corsa or Ford respectively..  

The hirer’s line manager receives a notification of the booking.   

Lynx hand controls for lower-limb disability are available from the supplier upon request. 

Use of vehicle 

Vehicle hire is considered official vehicle use for business purposes only. Any use of hire vehicles for private purposes is not allowed. This applies: 

• before the start of the hire (for example, using a vehicle when it is dropped off the evening before the hire date)  
• after the end of the hire 

Insurance cover is only in place for the duration of the actual hire. Employees cannot use hire vehicles to pursue private interests or activities. Insurance cover is not valid for these purposes. 

Employees will be liable for the payment of any fines (parking, speeding or other traffic offence) incurred whilst using a hire car.

Payment 

We make payments for vehicle hire centrally. We use a corporate card for vehicle hire made with our contracted provider. This allows us to consolidate them in a single account. 

At the point of booking, the hirer must enter onto the portal their cost centre and line manager. This allows internal reconciliation of the payment to the correct budget. 

The journey from home to work 

We do not allow the use of hire cars for normal travel from home to work and vice versa. This would constitute private use of an official vehicle.  

Length of hire 

We allow car hire for the minimum possible period required. This helps us to minimise costs. Line managers should consider a short-term lease for any hire requirement for over three months. 

One-way hire 

One-way hires can minimise the length and cost of the hire, where appropriate. For example, a week-long training course could require only two one-day hires; One day to travel to the course, and a second booking for one day to return from the course. In this instance, the total hire charges will be for two days rather than five. 

Authorisation requests 

Employees need approval for each new booking. They should make their line manager aware before making a booking, except in urgent circumstances. In these cases, retrospective notification to line managers is acceptable. 

Bookings for vehicles of category E and larger must have pre-journey consent from the line manager. Once a booking has been made the Business Support Team are notified of the booking and where a category is outside of the policy, they will contact the booker and/or manager. 

The manager will receive the option to decline the hire. If they do not decline it by the time of the booking, it will be authorised. This is to avoid instances of vehicle non-delivery.   

Record of journey 

It may be necessary for the employee to provide details of the business journey to HMRC. They must demonstrate that there has been no private use of the vehicle.  

We advise employees to keep a record of each journey. This must include the reason for and details of the journey (including postcodes of start and end addresses), plus the mileage travelled. This is the same as the information recorded on a travel expenses form. A travel expenses form is for when an employee uses their own vehicle on business.  

If an employee cannot evidence the journey was for business use, HMRC may assess there was a taxable car benefit. 

Insurance 

Insurance is in place to cover vehicle hire by our staff. A hire car for business purposes cannot be covered by personal insurance. Non-council staff are not insured to drive hire vehicles. 

Pick-up and return service 

The hire company offers a free pickup- and drop service (for the driver). They will pick up the driver and take them to their depot to collect the hire car. After hire, they will take the driver home.  This avoids collection and delivery charges.

Fuel 

The car hire company will deliver vehicles with a full tank of fuel. This is under the contract service level agreement.  

To avoid additional charges, drivers should refill the tank before returning the vehicle. Additional charges for the hire company to refill the tank are significant. These charges are 30 pence per litre on top of the pump price for the fuel.  

Drivers can reclaim the total costs of refuelling the vehicle through:  

1. the online expenses system ensuring that a fuel receipt is uploaded to Business World How employees with access to Business World can enter expenses 
2. the paper-based expenses system  How employees without access to Business World can enter expenses 

Out-of-hours delivery charges 

The vehicle hire company office hours are 8am to 6pm, Monday to Friday, and 9am to Noon on Saturdays. 

Requests for vehicles outside of these hours will incur an additional charge of £27.50. Drivers can avoid this by: 

• arranging to collect a vehicle 
• or, having a vehicle delivered at the end of the previous working period. For example, if a journey is to start at 6am, collect the car at 5.30pm the previous evening. 

Review of charges 

Business Support will reconcile: 

• lodge card transactions  
• consolidated invoice data   

The transactions are transferred into Business World against the cost centre provided at the point of booking.  

The team will raise any discrepancies identified during this process with: 

• the supplier (for example, charged days and agreement days do not match) 
• or, the vehicle user (for example, invalid cost centre provided).  

Budget and Spend Managers  will also have visibility of these transactions. They have a responsibility to check transaction activity in their area is appropriate.   

Sustainability  

We are committed to reducing CO2 levels. This policy promotes activities to achieve any of our targets.  

Duty of care  

Managers and drivers should be aware of their responsibilities in the use of daily rental vehicles. This is set out in this policy. They must also ensure that they actively comply with: 

• the provision and checking of driving licences 
• the process for authorisation of bookings 
• the refuelling of vehicles prior to return  
• the use of vehicles for business purposes only 

In addition, drivers should ensure that they: 

• familiarise themselves with the vehicle before beginning the journey. This includes location or position switches for lights, windscreen wipers and washers, handbrake and fuel filler cap. 
• keep within speed limits, obey road signs and comply with tolls and any parking restrictions
• plan journeys, allowing extra time for breaks and unforeseen delays 
• do not drive for too long without a break or whilst fatigued

Telephone and office allowances

Employees may be entitled to have telephone and office allowances if:  

• they are contractually a homeworker

This does not apply to working from home as part of smarter working.

Entitlements must reimburse employees for expenditure properly incurred in the course of their duties.   

Where we provide mobile telephones for reasons outside this scheme, the same provisions will apply for personal use. For example, due to health and safety, lone working etc. 

Office allowances 

We will make provision within a band of 3 and 4.5 square metres. This is the estimated maximum and minimum space required to accommodate an employee.   

The employee's manager will determine how much space is needed depending on the requirements of the job. This will take into account health and safety needs.  

Rates 

The rate applied in each case will depend on:  

• the amount of space required for safe storage  
• the use of work materials and equipment 

Where office allowance is to be paid the line manager must complete the allowance section on either:

• the Notification of Appointment Form if a new employee, or an Allowance and Salary Amendment Form if a current employee

Telephone allowances 

Where a decision has been made to provide a telephone, it will be within the following options:  

• a telephone line in the employee's home. They can use this for business purposes only. We will reimburse the cost of line rental and calls.  
• a mobile phone. They can use this for personal calls within the arrangements specified by the Director of Resources. For more details, read: 
  • G32 Mobile Phones – Health and Safety Advice
  • G32 Use of Mobile Phones and other devices whilst driving
• Where a work phone is not considered necessary, we will reimburse the cost of business calls on an employee's own phone. 

Smarter working homeworking equipment allowance

We will offer up to £100 per person every three years to purchase office equipment for use at home for example:

• smaller (non-standard) desk
• lamps
• blinds
• heaters or fans
• costs of additional broadband (including set up)

Employees should not make a claim until they have received and checked the item. 

When claiming Home Equipment Expenses refer to ‘How employees with access to Business World can enter variable pay

Employees should submit the claim on time and ensure a copy of the receipt is provided to their line manager to approve by the required Expenses deadline

Appendix 1 – VAT Receipt – Non-VAT Receipt Table

Employees are required to upload a receipt for all expenses incurred as detailed in this policy. Please see table below as to whether a VAT or Non-VAT receipt needs to accompany your claim. 

Appendix 2 - Mileage Claim Table

This table helps determine when to apply the Lesser Rule versus when to deduct normal commute mileage.