MS Society Expenses Policy

MS Society Expenses Policy 1 Purpose and scope 1.1 This policy outlines the Society s approach towards the reimbursement of expenses incurred by individuals while on Society business. 1.2 This policy includes: Expenses incurred by an individual and claimed via an expense claim form (either a paper form or an electronic form). Expenses incurred by an individual and paid for by the Society directly. Expenses incurred by an individual using a Society credit card. 2 Definitions 2.1 Expenses for the purposes of this document are personal costs of an individual incurred while undertaking MS Society business. 2.2 P11d form. This form has to be completed for each employee who receives taxable benefits from their employer. The employee will be taxed on any amounts appearing on the form. 2.3 The word must appearing in this expenses policy means that the Group Financial Controller or Head of Finance at the MSNC will need to be contacted, in advance, if this part of the expenses policy is not going to be followed to discuss the cost, legal and/or tax implications that will arise. These expenses will not be reimbursed unless clearance is obtained from the Head of Finance or Group Financial Controller in advance. 2.4 The word should appearing in this expenses policy means that under normal circumstances we would expect this part of the expenses policy to be followed. However there may be exceptional circumstances when it may be necessary to go outside of the expenses policy in these cases the authoriser will need to justify the reasons why the expense should be reimbursed. To avoid delays in payment of expenses it may be sensible to contact the finance team in advance to ensure the reason is justified. 2.5 HMRC consider trustees as directors and not as volunteers. Therefore Trustees will also need to consider the policy requirements which relate specifically to staff when claiming expenses. 3 General principles 3.1 The MS Society will only reimburse expenses that have been necessarily incurred by individuals while on MS Society business. Expenses policy v2.1 7 May 2015 1

3.2 With the exception of mileage rates, only the actual MS Society business cost incurred can be reimbursed e.g. a flat rate to cover expenses cannot be paid. 3.3 Expenses should be kept to a minimum. However the safety and wellbeing of volunteers and staff also needs to be taken into account in determining what is a reasonable level of expenses to reimburse. 3.4 No preferential treatment is given to trustees, volunteers, managers, directors, staff or any other individuals - all have equal entitlement to claim expenses and at the same rates. 3.5 Individuals should be encouraged to reclaim valid expenses incurred on MS Society business. An individual is able, if they wish, to donate the value of the expense claim back to the Society and Gift Aid could then be claimed on this donation (providing they are a UK tax payer). To enable the Society to reclaim gift aid the donor will need to pay the expense payment back to the Society. 3.6 Expenses must be reclaimed on the appropriate MS Society expense claim form and receipts should be attached. Expenses should be reclaimed within three months and must be reclaimed within six months. 3.7 Staff must use e-request (the online expense claim system) where they are set up to do so. 3.8 All expenses must be approved. The approver will be one of the following: For branch volunteers: an officer on the branch committee. For volunteers supervised by MS Society staff: by the budget holder or a person designated by the budget holder (but see 3.11 below). For employees: the line manager or their director. In cases where the line manager is not the budget holder then the budget holder may sign (this arrangement will need approval in advance from the finance team). 3.9 For paper based forms a scanned signature is not acceptable for either the authoriser or the claimant. Email authorisation will be accepted providing full details of the expense claim being authorised are given in the email. 3.10 The approver is responsible for ensuring that expenses are incurred in line with this policy. 3.11 Staff whom are found to have made a false claim, or have authorised a claim knowing it to be false will be subject to disciplinary action or in the case of a volunteer subject to the Resolving Volunteer Issues and Concerns policy. This may result in termination of employment for employees, or the ending of the relationship with the charity for volunteers. 3.12 Line managers, branch committees and others who may approve expenses are responsible for: Informing staff and volunteers of the expenses they can claim. Informing the Head of Finance or Group Financial Controller at the MSNC where they want to reimburse expenses under section 2.3 above 3.13 If an approver of an expense claim is found to have; Expenses policy v2.1 7 May 2015 2

knowingly approved an expense claim outside the policy without speaking to finance or justifying on the expense claim form (in line with sections 2.3 and 2.4 above) OR not checked claim forms they have authorised OR advised individuals to make a false claim Then they may be subject to disciplinary action or in the case of a volunteer to the Resolving Volunteer Issues and Concerns policy. 4 Specific expenses 4.1 General travel 4.1.1 To claim for travel the expense claim form must detail why the journey was undertaken and where it was from and to. If a diversion was taken during the journey then this must be stated on the claim form. 4.1.2 Reimbursement of travel costs between home and work is only permissible in the following circumstances: Where the person is a volunteer. Where home is their normal place of work as stated in their contract of employment. After 9pm for a late night taxi (and only if this happens on an infrequent basis). 4.1.3 Employees who are expected to attend a meeting or a training event outside their normal place of work resulting in an extension to their usual commute can be reimbursed for any additional expenditure over and above their normal commuting costs. 4.1.4 In the case of journeys to meetings from the normal place of work, the full costs will be reimbursed. 4.2 Travel on MS Society business using private vehicles 4.2.1 As a general rule the Society will pay the maximum allowed by the HMRC for mileage. Under no circumstances must more be paid than the maximum allowed by HMRC and fuel costs will not be reimbursed. 4.2.2 Current rates are available from the finance team at the MSNC. 4.2.3 For volunteers and staff (who do not receive a car allowance), use of private vehicles is restricted to no more than 150 miles round trip. For journeys of more than 150 miles permission should be obtained in advance and the authoriser will need to justify why public transport was not used on the claim form. 4.2.4 Staff must provide fuel receipts with their claim forms. Volunteers should be encouraged to submit fuel receipts with claim forms to enable the Society to reclaim VAT. Expenses policy v2.1 7 May 2015 3

4.2.5 Individuals are responsible for ensuring they have the correct insurance to use their vehicle on MS Society business and the vehicle is roadworthy. The Society cannot pay any additional premium that may become payable or pay for a lost no claims bonus and/or excess if the individual is involved in an accident while on MS Society business. 4.2.6 The following motoring costs can be reimbursed providing they are necessarily incurred in order to carry out MS Society business: Parking fees (not fines) Bridge and tunnel tolls. Reimbursement of road tolls must be justified on the claim form. Congestion charges (but not late payment fines) 4.2.7 The following expenses will not be reimbursed under any circumstances: Insurance costs in the event of an accident while on MS Society business. Repair and maintenance costs incurred while on MS Society business. Any other motor vehicle costs not mentioned above. Parking fines and fines for late payment of congestion charges and similar fines. Using a vehicle hired by the MS Society for MS Society business 4.2.8 If a vehicle is hired by a person using an MS Society they must record the mileage, the locations visited and the reasons for the journeys. 4.2.9 Private mileage must not be incurred using a hire vehicle. The Society will not reimburse any additional tax incurred by a staff member if they should use a Society hire vehicle for private use in any circumstances. 4.3 Travel using public transport for MS Society business 4.3.1 Journeys on public transport should be the cheapest available at standard class fares. 4.3.2 Staff members who receive a car allowance must justify on the claim form why they have used public transport. 4.3.3 To reclaim the cost of journeys from an oyster card, a TFL statement should be provided which details the journeys undertaken. 4.4 Using taxis 4.4.1 As a general rule, taxis should not be used. 4.4.2 The following will be a justifiable reason for using a taxi: Where there are access issues with public transport. Where a location has only limited public transport. Where you need to carry equipment or other luggage. The cost is cheaper than using public transport (which might be the case if there are a number of people using the taxi). When travelling late (after 9pm) from your place of work to home (providing this happens only on an infrequent basis). Expenses policy v2.1 7 May 2015 4

4.5 Subsistence (Food, drink and accommodation) 4.5.1 Subsistence can only be reimbursed if incurred in the course of a journey on MS Society business. Note, to be reimbursed, food and drink will need to be purchased on the course of that journey and not beforehand otherwise this is deemed to be a benefit in kind by HMRC and therefore taxable. 4.5.2 Subsistence rates will be increased by inflation on the 1 January each year by using the previous September s RPI figure. This does not apply to the incidental overnight expenses limit which will be the maximum allowed by HMRC. The latest rates are available from the finance team at the MSNC. Food and drink 4.5.3 To claim for food and drink while on MS Society business, the claimant must be away from their normal place of work for more than 4 hours. 4.5.4 You can reclaim up to the following amounts (limits as at 1 January 2015): - Breakfast up to 6.80 Lunch up to 12.35 Evening meal up to 30.90 4.5.5 For other non-alcoholic drinks & snacks purchased there is a limit of 5 per day. 4.5.6 Claims for alcohol will not be reimbursed without the authorisation of a MS Society director. 4.5.7 Where food or drink is paid for others it is important you provide the following additional information on the claim form: The purpose of the meeting. Who the meal or subsistence was paid for whether they were volunteers, staff members, corporate guests etc. 4.5.8 Working lunches at national offices can be reimbursed if they involve guests or volunteers. If you are not having a working lunch, you may claim hospitality expenses in the normal way for your guests but not for staff based at the national office. Accommodation 4.5.9 Overnight accommodation should not exceed 95 per night ( 105 per night where breakfast is included). 4.5.10 Overnight accommodation can only be claimed where it is part of a journey e.g. you cannot claim the cost of overnight accommodation which is close to your office or your home. For example, an MSNC based employee should not stay in overnight accommodation at the Crown or Travelodge (in Cricklewood). If you are unsure whether a proposed overnight stay may be considered to be close to your office or home you should contact the Financial Accountant or Financial Controller at the MSNC. Expenses policy v2.1 7 May 2015 5

4.5.11 Incidental expenses while staying at overnight accommodation must not amount to more than 5. Incidental expenses include food and drink not part of the evening meal, internet access and similar expenses. 4.6 Telephone/mobile costs (and similar devices) 4.6.1 Only the cost of telephone or mobile calls made on MS Society business and on a detailed bill can be reclaimed. 4.6.2 The following will not be reimbursed: Rental charges on telephones/mobiles Pay as you go top ups Calls where there is not an itemised bill 4.6.3 Where a telephone/mobile is used exclusively on MS Society business then the telephone bill must be in the name of the Society and not the individual.. 4.6.4 Where a telephone/mobile has been issued to an individual for MS Society business they must reimburse the Society for any private calls made on the phone. 4.7 Professional fees and subscriptions 4.7.1 Professional fees and subscriptions can only be reimbursed for employees where the professional qualification is a requirement of the job description. The professional body must be included within HM Revenue & Customs List 3 and in accordance with s343 and s344 Income tax (Earnings and Pension) Act 2003 check with the finance department at the MSNC. 4.8 Other costs 4.8.1 Individuals should not make payments on behalf of the Society for goods and services. A credit account should be set up with the supplier who should bill the Society directly. 4.8.2 As a general rule any other costs should be checked in advance with the finance team to ensure they will be reimbursed. Expenses policy v2.1 7 May 2015 6