NHS ISLE OF WIGHT CLINICAL COMMISSIONING GROUP ASSISTED RELOCATION EXPENSES POLICY
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1 NHS ISLE OF WIGHT CLINICAL COMMISSIONING GROUP ASSISTED RELOCATION EXPENSES POLICY NHS Isle of Wight Clinical Commissioning Group 3
2 AUTHOR/ APPROVAL DETAILS Document Author Written By: Loretta Outhwaite Date: March 2017 Job Title: Chief Finance Officer Effective Date: 30 March 2017 Approval At: CCG Remuneration Committee Authorised Signature Authorised By: Helen Shields Date: Job Title: Chief Officer Review Date: March 2019 Date Approved: 30 March 2017 VERSION CONTROL Version Date Changes /02/14 Initial draft /06/14 Draft policy to Remuneration Committee for comment 1.1 4/08/14 Staff consultation /09/14 End of consultation 2.1 6/11/14 Final Approval by Remuneration Committee /03/17 HR changes and update NHS Isle of Wight Clinical Commissioning Group 4
3 CONTENTS Part Description Page 1 Executive Summary 4 2 Introduction 4 3 Scope 4 4 Key Responsibilities 4 5 Policy Detail / Course of Action 5 6 Monitoring & Key Performance Indicators 5 7 References 6 8 Links to Other Policies 6 9 Disclaimer 6 Appendix Description Page 1 Key Definitions for Documentation 7 NHS Isle of Wight Clinical Commissioning Group 5
4 1. EXECUTIVE SUMMARY 1.1 This policy is a strategic statement regarding Assisted Relocation Expenses. It defines who is eligible for such expenses, the role of CCG managers, the level of assistance available and the HM Revenue & Customs taxation exemptions that apply providing the CCG approves such expenses within HMRC guidance. 1.2 Assistance with relocation expenses may be granted to employees, irrespective of their previous employer, who take up an appointment with the CCG and are not resident on the Isle of Wight. There is no automatic right to relocation expenses. 1.3 Assisted Relocation expenses will only be granted upon the employee signing an undertaking that they will not leave the employment of the CCG within a period of two years. Where an employee breaks the undertaking they will be required to refund the expenses paid. 2. INTRODUCTION 2.1 The CCG wishes to be an employer of choice. It is necessary to attract employees to work on the Isle of Wight, and this policy supports the requirement to help with the costs of moving/travel. The CCG is committed to equality of opportunity in employments and the recruitment of a diverse workforce, regardless of race, gender, age, religion, nationality, belief, sexual orientation, criminal conviction history, or disability. The CCG aims to positively support the recruitment of a diverse workforce and ensure this process does not place any barriers to an individual s recruitment. HM Revenue and Customs (HMRC) support such schemes by providing tax relief on the benefits paid, providing their guidance is followed. A procedure for Assisted Relocation supports this policy and details what expenses can be claimed. 3. SCOPE 3.1 This policy applies to employees joining the CCG who are not Isle of Wight residents. The 4 categories of the scheme are as follows: Purchase and sale where the sale and purchase of a property is involved Purchase only where previous accommodation was rented Rent where proposed accommodation is rented for a period of up to 6 months, whilst the employee seeks to relocate to the area and is unable to travel daily Travel from the mainland to the Isle of Wight. Note: where travel is agreed instead of relocation the benefit will be taxable (in line with the HMRC guidance) 4. KEY RESPONSIBILITIES 4.1 The following groups have responsibilities to advise on this policy: Human Resources Senior Management Team Responsible for advice and technical guidance To approve applications for assisted relocation within their directorate NHS Isle of Wight Clinical Commissioning Group 6
5 Recruiting managers Line managers To be aware of the policy in order to discuss with candidates at interview To be aware of employees who have received support by application of this policy. Applicants and employees must ensure that they are aware of this policy and the associated procedure and their responsibilities in connection with them. 5. POLICY DETAIL / COURSE OF ACTION 5.1 The application of this policy is outlined within Assisted Relocation Expenses Procedure 5.2 Assisted Relocation Expenses will be paid in accordance with the following: Salary Level of Assistance (up to) 40k plus 10,000 25k plus 8,000 20k plus 6,000 15k plus 4, In exceptional circumstances and on he authority of theboth the Chief Officer and the Chief Finance Officer, the top rate of assistance may be exceeded. Note: tax relief is only available on the specified benefits and within the maximum limit in the HMRC guidance Where this authority is not given claims over and above the agreed limit will not be approved as assisted relocation expenses. 5.6 Claims can include: a) Legal and professional fees including estate agents fees, solicitor s fees, surveys, stamp duty, land registry fees etc. b) Furniture removal, including insurance. For self-removal, vehicle hire costs and insurance can be claimed c) Disturbance allowance an allowance may be payable towards: Temporary cost of living in lodgings and maintaining a separate home; Excess travelling from current home to work, pending relocation; Travel home at weekends whilst in temporary accommodation, pending relocation. d) Expenses in old and new areas at the same time travel expenses in connection with the search for accommodation in the new area of employment will be reimbursed for up to two visits. e) Travel from home to the Isle of Wight, where this has been agreed by the Chief Officer in lieu of relocating to the Island, and can include travel, ferries, parking and temporary accommodation e.g hotel, property rental.this benefit is not within the HMRC Assisted Relocation Scheme, as there is no change in permanent residence and it is therefore taxable as stated at 5.6 of this policy. NHS Isle of Wight Clinical Commissioning Group 7
6 5.6 It should be noted that should a change of permanent residence not take place, HMRC will seek to recover tax on any benefit that has been paid. 6. MONITORING & KEY PERFORMANCE INDICATORS 6.1 The policy is supported by a procedure The Trust Human Resources services will: Receive all applications for funding Ensure that all applications appropriately Have a recording system to know who has approved funding Approve expense claims in line with what has been approved, ensuring that each claim is appropriately classified as taxable/non-taxable (in line with HMRC current guidance) Maintain a record of all claims Ensure that the total claims are within the funding limit that has been agreed and are made within the time limits required by HMRC The Finance Team will: Report on assisted relocation expenses incurred to budget managers on a monthly basis 7. LINKS TO OTHER POLICIES Recruitment and Selection policy Assisted Relocation Expenses Procedure 8. DISCLAIMER 8.1 It is the responsibility of staff to check the CCG extranet to ensure that the most recent version/issue of this document is being referenced. 8.2 Assisted Relocation Expenses are subject to guidance issued by HMRC ( In order for the CCG to remove tax and NICs liability on certain removal expenses the HMRC guidance will be followed. 8.3 It should be noted that under current HMRC rules only the first 8,000 of assisted relocation is tax exempt for employees, provided it meets the criteria within the guidance. NHS Isle of Wight Clinical Commissioning Group 8
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