Expenses policy

1. The policy

1.1 This policy applies to all members of the University group seeking reimbursement of travel and other expenses. Members of the University are:

• i) All employees of the University
• ii) Agency temps
• iii) Members of the Board, including co-opted members of Board level Committees 
• iv) Students who are engaged to work for the University. 

1.2 External examiners fees and expenses and interview expenses of applicants are paid in accordance with the policies set out on the University’s website.

1.3 It is the responsibility of Budget Holders to ensure that this document is brought to the attention of all members of the University within their area and to other persons who may need to claim reimbursement from the University. 

1.4 It is the policy of the University that all members of the University are fairly reimbursed for reasonable expenditure incurred wholly, exclusively and necessarily in the performance of their duties.

1.5 All members of the University must exercise prudence and discretion in their expenditures and consider the business need and reasonableness of any expense. All members of the University should keep expenditure to a minimum without incurring risk to themselves or impairing the efficiency of the University. This need for prudence is required to ensure that expenditure is properly controlled and University targets for financial sustainability are met. 

1.6 The University reserves the right to refuse to reimburse any excessive expenditure which has not had the prior approval of the Budget holder. 

1.7 The University Secretary, as the appropriate Budget Holder, reviews and approval claims from Governors and co-opted members. 

1.8 Authorised Budget Holders approving expenses have a duty of care to the University to reject claims that are not reasonable and justified. Authorisers certify that to the best of their knowledge and belief the expenditure has been incurred wholly, exclusively and necessarily in the performance of the claimant’s duties as a member of the University, is considered reasonable and is in line with the University expense policy.

1.9 Reimbursement of expenses is managed by Finance staff who are responsible for the prompt payment of valid expense claims. Finance staff owe a duty of care to the University to report breaches of this policy to the Group Chief Financial Officer.

1.10 Claims can only be made which meet this policy. Claims must be completed in sufficient detail for the authoriser and the Finance department to review the reasonableness and appropriateness of expenditure prior to payment. Claims will be reviewed and monitored to ensure compliance with the policy. Authorisers will be challenged if claims are not detailed, completed correctly or if expenses appear to be excessive.

1.11 Breaches of policy, abuse and inappropriate claiming/authorisation of claims under this policy will be investigated and may lead to disciplinary action.

1.12 Claims must be made promptly; where expenditure is claimed that was incurred more than 3 months before the claim was submitted payment may not be met. 

2. How to claim

2.1 Staff must claim by logging into the University’s online system.

The claim must be completed on-line and once submitted will be automatically emailed to the claimant’s line manager for on-line approval. The claimant should print out the claims summary, attach all receipts to this and forward it to the authoriser. The authoriser will sign the claims summary and send this with the receipts to the Finance department.

2.2 Governors should attach their receipts to the claim form and send to the University Secretary for authorisation. 

2.3 All members of the University must ensure that claims are completed diligently, promptly (as defined within paragraph 1.12) and with all supporting original receipts.

2.4 Claims must be in Sterling irrespective of the currency in which the expense was incurred. 

2.5 All items of expense incurred must be accounted for and supported by receipted tax bills whenever possible and reasonable. Credit card vouchers by themselves are not acceptable as proof of expenditure. Whenever VAT is being claimed the receipt must bear the supplier’s VAT number. 

2.6 Whenever original copies of receipts or invoices have to be submitted to an external body in support of a reimbursement claim by the University a photocopy is acceptable. The name of the external funding body must be clearly stated on the form.

2.7 Adequate narrative must be provided to justify that the expenditure was incurred” wholly, exclusively and necessarily” for the business of the University. Claims containing general descriptions such as “other” must be rejected by authorisers. 

2.8 Any attempt to submit a false claim will be treated as a serious disciplinary offence and may result in the University taking disciplinary action.

3. Authorisers

3.1 The principal control over reasonableness of expense claims rests with approved Budget Holders. Authorisers must not approve expenses where compliance with the overriding policy is in doubt but should refer the matter to the Finance Team. 

3.2 The authoriser certifies that to the best of his/her knowledge and belief the expenditure has been incurred wholly, exclusively and necessarily in the performance of the claimant’s duties as a member of the University, is considered reasonable and is in line with the expense policy. Where this is not the case the claim must be rejected by the authoriser and returned to the claimant unapproved with an explanation for non- approval.

3.3 Authorisers must act reasonably to ensure all members of the University are reimbursed promptly and are not left “out of pocket”. 

3.4 Authorisation must be made by the Budget Holder or his/her nominated delegate or in the case of Budget Holders by their direct line manager.

3.5 No member of the University may authorise the payment of an expense claim to be made to themselves or to a member of their family. Self-authorisation is never permitted e.g., authorisation of an expense claim where costs relating to the authoriser are included. 

3.6 Expenditure of up to £8,000 may be claimed relating to relocation expenses when such an agreement is made during recruitment. Such claims require the prior approval of the claimants ultimate Budget Holder and the approval of the Director of Human Resources. 

3.7 Claims received by Finance that are considered unusual or inconsistent with this policy will be returned to authorisers.

3.8 All expense claims may be subject to detailed review and audit. This review in no way overrides the responsibility of authorisers to ensure compliance with this policy.

4. Expenditure which may be claimed

4.1 Reasonable expenditure

Employees will be reimbursed for expenditure incurred wholly exclusively and necessarily in the performance of their duties while on university business. Employees must exercise prudence and discretion in their expenditure and consider the business need and reasonableness of any expense. Whenever possible, alternative solutions to business travel must be used e.g., video or telephone conferencing. If there is any doubt about the reasonableness of expenditure, then the claimant must seek the written approval of their manager before incurring the expenditure. 

4.2 Courses and conferences

All members of the University may from time to time need to attend courses or conferences to enable them to carry out their duties for the University more effectively. The University will bear the reasonable cost of a member of the University’s attendance at such an event providing that: 

• i) The course or conference will lead to the acquisition of knowledge or skills which are necessary for the duties of the member or are directly related to increasing effectiveness in their performance of present or prospective duties. 
• ii) The member’s attendance at the course or conference has been approved in advance by the Staff Learning and Development Manager. 
• iii) The costs of attending the course or conference are met from the HR staff development Budget and prior approval for the cost must be given by the Staff Learning and Development Manager. Travel costs will be met from the claimant’s own department and prior approval for travel costs must be given by the claimant’s own department Budget Holder. 

4.3 Travel

• i) All air, sea, car or rail travel for a single or return trip over £100 requires the prior approval of the relevant budget holder. 
• ii) Travel should be made using the lowest cost option, which may be by car, train or low-cost airline.
• iii) Authorisers are responsible for ensuring that the lowest cost option only is approved. 
• iv) The University’s mandated supplier for travel arrangements is Clarity Travel Ltd. All travel and accommodation requirements including low-cost airlines and trips involving students should be booked via Clarity Travel Ltd. This is important as the risk of making inappropriate bookings, which could lead to risk for staff or students, is reduced. These costs will be billed directly to the University and therefore should not be included on expense claim forms. 
• v) Travel should be in Economy/ Euro budget /Coach Class or at the lowest fare where appropriate. Low-cost airlines should be used whenever appropriate. Return travel should be with the same in order to minimise cost, unless using a different carrier would achieve a cost saving to the University. 
• vi) Standard class travel only will be reimbursed. In exceptional cases the Vice-Chancellor may approve an exception to this. 
• vii) Oyster card top ups are not normally claimable, but there may be occasions where this is the best form of travel and the journeys made should be listed on the expense claim. 

4.4 Intersite travel - Travelling by rail:

• i) Standard class fare may be claimed (not first class). 
• ii) If possible, meetings should be arranged to take advantage of off-peak rates, but if this is not practical then the full peak rate fare may be claimed. 
• iii) Station car parks may be claimed when travelling by train. 
• iv) Receipts should be attached to the expense claim. 

4.5 Intersite travel - Travelling by car:

• i) If travel by train is not a practical possibility e.g. transporting heavy items or colleagues, then 45p per mile for a petrol/diesel car is claimable for the first 80 miles, then 25p per mile for the remainder of the journey/round trip. 4p per mile can be claimed for an electric car. The reasons and registration number must be set out on the expense claim.
• ii) If your business journey starts from or goes directly past your workplace, you must only claim business mileage from the workplace and not include your normal commute. 
• iii) If you are undertaking a journey which is in a different direction from your normal commute to work and does not go directly past your workplace, you can claim business mileage for the whole journey, from your home. 

4.6 Hotels

• i) The University’s mandated supplier for travel arrangements is Clarity Travel Ltd. All travel and accommodation requirements including low-cost hotels and trips involving students should be booked via Clarity Travel Ltd. This is important as the risk of making inappropriate bookings, which could lead to risk for staff or students, is reduced. These costs will be billed directly to the University and therefore should not be included on expense claim forms. 
• ii) If Clarity Travel Ltd are unable to provide relevant hotel accommodation, every effort must be made to ensure that the cost of arrangements for overnight accommodation is as economical as possible. Accommodation should therefore be obtained in a hotel of reasonable quality no more than £150.00 (ex-vat) B&B per night. Any exception will require the prior written approval of the Vice- Chancellor. 
• iii) Reasonable meal charges and incidental expenses will be reimbursed. 
• iv) When claiming hotel bills, pay TV and videos, newspapers and claims for alcohol and other items listed in section 5 below will not be reimbursed.

4.7 Taxis

Taxis should only be used where there is a clear business need, for health and safety reasons, or it is efficient compared with other arrangements. Waiting time must be kept to a minimum. This must be approved in advance by line managers.

4.8 Parking and congestion charges

Employees will be reimbursed for the purchase of the congestion charge permit and for costs incurred for parking at stations and airports, while on university business. Fines for parking or speeding while on university business are never paid, see paragraph 5.1.

4.9 Own vehicles

All members of the University who use their private vehicles on university business must ensure that their insurance policy covers such usage. The University accepts no liability. The mileage claimable is the excess over the normal mileage from home to normal place of work. 

4.10 University purchasing credit cards

• i) University card holders must use such cards strictly in accordance with the rules issued to them when the card was provided. Card holders must retain receipts and other supporting documentation for any expenditure. Failure to comply with the rules and requirements governing the corporate card may result in the withdrawal of the card and may result in the University taking disciplinary and/or other appropriate action. 
• ii) The rules regarding the use of procurement cards and procedure for providing receipts is set on our website.

4.11 Entertaining and hospitality

• i) Claims for entertaining third parties may be made in the furtherance of the University’s relationship with the individual or entity. The business need for such entertaining must be specified on the claim form and the names of all individuals present stated and the names of any external organisations involved stated. This identification is required to comply with HMRC regulations. 
• ii) Wherever possible during term time the University’s student training restaurants must be used for corporate hospitality to promote the University and its students and minimise such expenses. 
• iii) Expenses for entertainment and/or corporate hospitality will not normally be reimbursed where all of the persons present were employees. Any exception will require written approval of the Group Chief Finance Officer. 
• iv) The number of employees present at corporate hospitality events where expenses are claimed should not normally exceed the number of visitors. Any exception will require written approval of the Group Chief Finance Officer.

4.12 Gratuities

When a service charge has not already been included on the bills, gratuities for meals etc. should be made at an appropriate level: e.g. the guidelines for UK gratuities is 10%-12%.

4.13 Subscriptions to associations

• i) Employees are eligible to claim a contribution towards, or reimbursement of, the fees for membership of professional bodies at a reasonable amount.
• ii) The professional body must be one where membership is a contractual requirement of the post or is directly related to the main duties of the post. 
• iii) If the Professional Body or Learned Society does not appear on HMRC’s List 3 of approved bodies, the payment must be processed through Payroll and taxed accordingly.
• iv) Claims for subscriptions to professional journals can be made only if the journal is a requirement for the job, is in the University’s name, is kept on University premises and is available for use by any colleagues who may wish to view it.

4.14 Mobile phones

• i) University mobile phones are issued for business purposes and use for personal calls, texts and internet browsing should be kept to a minimum. Personal usage must be repaid by the individual. Mobile phone will be issued with a monthly on-line statement enabling them to identify personal use. The amount identified will be automatically advised to payroll and a deduction made against net pay. 
• ii) Where staff need to make University-related calls using their own mobile phone (e.g., University calls while on holiday) they may reclaim the cost through expenses claim. A copy of the phone bill with the claimed calls highlighted is required. 
• iii) Mobile phone top up cards are never claimable, see section 5 below.

4.15 Business travel combined with holidays or personal travel

The combination of university-funded business travel with holidays (including weekends) must be pre-approved by the Vice-Chancellor. The accompaniment of family and friends on university-funded travel also requires pre-approval by the Vice-Chancellor; the expenses of family and friends are not reimbursed. 

4.16 Laundry

Reasonable laundry costs may be reimbursed where the length of business trip exceeds 7 days, and the cost is no more than £10 per day of the trip. 

4.17 Staff gifts

There are occasions where it is appropriate to send gifts/flowers to staff on behalf of the University and this should be pre-approved by the respective budget holder. These gifts should strictly not be as a reward for service but, instead, for example, be for an employee leaving, or family bereavement. All costs should be reasonable.

5. Expenditure which may NOT be claimed

5.1 Expenses that are private, normally incurred outside work, not work related or are considered excessive and unreasonable are not reimbursable. 

5.2 Refreshments supplied during meetings:

• i) The University’s catering service provider is the sole provider of refreshments for meetings within the University and all such services must therefore be obtained from them. This is a contractual arrangement and should not be breached. The costs will be charged directly to the department and not to the individual. The only exception to this, specifically excluded within the catering contract, are the University’s student teaching restaurants which may from time-to-time supply refreshments for certain meetings with permission of the Budget Holder. These costs may then be reclaimed. 
• ii) Refreshments should only be ordered in the following circumstances:
  • The meeting is with external visitors. 
  • The meeting is a formal meeting of over two hours duration and involves over six people. 
  • The meeting involves over six people and extends through lunchtime. 
• iii) The University reserves the right to refuse to meet the cost of any catering services obtained in breach of these regulations. 

5.3 Personal costs, including:

• i) Mobile phone top up cards
• ii) Child-minding
• iii) Diaries

5.4 Travel costs such as:

• i) Traffic violation fines, including car parking fines, clamping and congestion fee fines
• ii) Travel/mileage from home to normal place of work.
• iii) Passport replacements

5.5 Hotel expenses such as:

• i) Hotel videos and pay TV
• ii) Hairdressing and purchase of items of personal clothing
• iii) Toiletries, luggage, magazines and books when staying away. 

5.6 IT equipment, including laptops, printers and minor items; software; or services, including web based. This applies even when the cost is grant funded as such purchases must always be procured via the IT Department. 

5.7 Conference attendance fees, see section 4.2 (related travel costs may be claimed).

5.8 Eye tests or glasses. Contact the Health and Safety department who will make the appropriate arrangement.

6. Claims processing

6.1 Payment is made through the payroll system with amount of the claim added to net pay and shown separately on the payslip. 

6.2 Payment will be made when the Finance department have received: 

• i) The on-line approval from the claimant’s manager; and 
• ii) The claims summary with the manager’s authorisation the receipts attached (see para 2.1) 
• iii) All claims should be forwarded to MyView.Expeses@uwl.ac.uk 

6.3 When the on-line approval and the receipts have been received by Finance, the claims are processed weekly.

7. Mileage rates

7.1 The mileage rate paid for use of the claimant’s private petrol/diesel car is: 

• 45p for the first 80 miles of any journey
• 25p for the remainder of the journey

“Journey” refers to a round trip. Each day is classified as a separate journey/round trip’.

7.2 Electric Car, Motorcycle and bicycle allowances. Staff are reimbursed for the private use of the above on university business at the rates allowed by HMRC: 

• Electric car – 4p per mile
• Motorcycle – 24p per mile
• Bicycle – 20p per mile

8. Tax issues

8.1 This policy and procedure have been prepared to ensure compliance with relevant UK tax legislation thereby avoiding situations where either an employee or the University is exposed to an assessment for tax by HMRC. 

8.2 Where an employee is reimbursed business mileage in their own petrol/diesel car at a rate of less than 45p per mile for the first 10,000 miles or 25p per mile for mileage over 10,000 miles, they may claim tax relief on the difference between the amount reimbursed and the statutory rates (above). The relief, which can be claimed from HMRC, is claimed by the employee as part of the Self-Assessment tax return process. It is the responsibility of the employee to keep mileage records and make their own claims to HMRC. 

8.3 In order to pay subsistence allowances (such a flat rate daily allowances or fixed overnight rates) an organisation is required under HMRC rules to obtain specific agreement to the amounts within their P11D dispensation otherwise any such payments will be treated by HMRC as taxable income of the individual and reportable on P11D’s. The University has no agreed dispensation in place for subsistence allowances and that is why the actual costs rather than flat rate subsistence payments must be claimed. Furthermore, claiming actual costs allows the VAT to be reclaimed (providing a proper VAT receipt is obtained). 

8.4 A valid VAT invoice contains the following information:

• The name and address of the supplier 
• The VAT identification number of the supplier 
• The date of the transaction 
• Description of the transaction 
• The rate of VAT charged. 
• The amount of VAT charged. 
• Invoices from UK suppliers for less that £250, (i.e., for fuel) are valid if they show the name of the supplier, their VAT registration number, the date and the rate of VAT shown in the inclusive value of the transaction. 

8.5 There will be occasions when costs which are properly incurred fall outside HMRC definitions and tax is payable on them by the employee who incurs the cost. The University recognises that such costs may be incurred from time to time and will gross up such costs for tax and national insurance and settle the liability on the employee’s behalf, doubling the cost to the University in most cases. Therefore, there needs to be a mechanism in place to capture these costs and to gross them up for tax and national insurance purposes. For this reason, precise details are required to support such claims e.g., numbers of university employees included details of guests etc. The cost of the grossing up for tax and national insurance will be charged to claimants own departmental budget. 

This policy forms part of the financial regulations of the University.