Reimbursement of Relocation & Removal Expenses Procedure

Reimbursement of Relocation & Removal Expenses Procedure

Document Name: / Reimbursement of Relocation & Removal Expenses Procedure
Ref & version no.: / Version 2
Status: / Live
Equality Impact Assessment: / Pending
Approved by: / University Executive
Effective from: / 7th August 2012
Date for review: / As Required
Author: / Leanne Wheatley
Owner: / HR Division
Document control: / All printed versions of this document are classified as uncontrolled. A controlled version of this document is available from Human Resources website. Questions on this policy should be initially directed to HR Services on 0161 2952121.

Version History

Version number: / Date: / Nature of Change (reasons/comments)
Version 1 / June 2008 / Revised Procedure
Version 2 / November 2011 / Revised Procedure & Application
Scope & purpose of procedure: / This purpose of this procedure is to formalise how the University applies the reimbursement of some relocation and removal costs. This scope is for newly appointed employees at grade 7 and above who are required to move their permanent residence in order to accept a role with the University
Procedure start point: / Not applicable
Procedure end point: / Not applicable
Other Policies / Procedures linked to / 2011 Staff Travel and Other Expenses and Benefits
Interview Expenses Procedure Document
Who this procedureapplies to: / This procedure applies to newly appointed University employees at grade 7 and above where it has been pre-approved by HR and the relevant College/School. This procedure does not apply to those who are not employed by the University, for example, agency staff or contractors.
Procedure users: /

• The Management team within the University will be responsible for agreeing to the costs associated with this procedure
• Human Resources Division will be responsible for providing guidance and direction in addition to approvingall claims associated with this procedure
• Finance Division will be responsible for checking the completeness of any claims associated with this to ensure statutory and HMRC compliance
• Any employees where reimbursement of such costs has been approved by the School/College/Division and HR Division

1.Detail of Procedure

1.1.Procedure Overview
The University is committed to securing the appointment of the highest standard of candidates through its recruitment process and it aims to ensure that geographical mobility is not a barrier to appointing such candidates. By providing financial assistance (where agreed) up to £8,000 the University will ensure it remains competitive by attracting and retaining the very best candidates for its senior positions.
This procedure sets out the principles that will be adopted in all cases where the reimbursements of these costs have been approved.
1.2.Aim of the Procedure
1.2.1.To ensure the University remains competitive in attracting and retaining the highest calibre of candidates
1.2.2.To provide assistance with the cost of relocation
1.2.3.To ensure there is rigour and fairness to how the University reimburse such costs

2.Approval Process for all Claims

2.1.Costs for Reimbursement of Relocation & Removal Expenses
2.1.1 Forappointments within the UK the recruiting managers should be aware that the costs could be up to £8,000
2.1.2 For appointments outside the UK additional costs over and above the £8,000 can be incurred which would normally be charged back to the relevant School/College
2.2.Approval Prior to Advertising the Role
For any position where the reimbursement of these costs may apply (subject to eligibility) the recruiting manager should first discuss this with the relevant HRBP. When completing the ‘VCP Justification for recruitment form’ the Manager should indicate if the role would be eligible for these expenses.
2.3.Approval Prior to Inviting to Interview
2.3.1Once a recruiting manager has shortlisted the candidates for any role which has been approved as eligible under 2.2. they must first discuss the candidates they would like to invite to interview with HR (Resourcing, HR Advisor or HRBP)
2.3.2 HR should determine if the local labour market has not provided sufficient candidates by reviewing the shortlisted applicants before confirming the invite to interviews. Candidates from outside the local labour market will only be considered where there is a national or international labour market and where recruitment from the local area does not provide sufficient applicants
2.4.Approval Prior to Offer Stage
Where the role has been approved as eligible for these expenses under 2.2 and 2.3
The recruiting manager should agree with HR if the offer letter should include details of reimbursement of these expenses.
2.5.Approval of claim forms
2.5.1 Once the employee has completed a claim form as per appendix 1 of this procedure, the completed and signed form, along with all original itemised receipts, should be sent to HR Services for approval.
2.5.2 HR Services should;
-confirm the claim is eligible and has received prior approval
-check the claim forms and the original itemised receipts and should only approve claims which are in accordance with this procedure.
-check the employee has signed the relevant disclosure in relation to paying back these costs upon leaving the University.
-track all claims on the relevant trackers
-once approved the claim forms and original itemised receipts should be sent to Finance.
-If the claim is not approved, the employee and their line manager should be made aware ASAP.
2.5.3 Finance should then:
-double check all claim forms and original itemised receipts and only approve those which are in accordance with HMRC guidance.
-once approved they should process payment
-ensure accurate reporting of the payments made e.g. via the P11D.
-If the claim is not approved at this stage, the employee and their line manager should be made aware.

3.Eligibility

Employees will only be eligible for the reimbursement of relocation andremoval expenses if they satisfy all the following criteria withinthissection.
3.1Eligible Appointments
Employees will only be eligible for the reimbursement of these expenses if they meet all of the following criteria;
3.1.1 The role has been pre-approved as per points 2.2, 2.3 and 2.4 of this procedure
3.1.2The role is a grade 7 and above (or by exception)
3.1.3The employee is new to the University (i.e. not applicable to existing employees who are promoted/change role)
3.1.4The costs incurred by the employee are a result of them moving their permanent residence. This will not apply where a buy to let property has been purchased.
3.1.5The move of the permanent residence was as a result of the employee accepting their role at the University (i.e. the move was not pre-planned by the employee before they accepted the position)
3.1.6The role is a permanent position or a fixed term roles of between 1 and 2 years (this will only qualify for 50% reimbursement). If the appointment is for less than 1 year the role will not qualify for assistance.
3.1.7 The employee has completed all the relevant claim forms, provided all the relevant documentation and has signed and completed the payback declaration as per appendix 1.
3.2Geographical Appointments
In addition to 3.1 employees must satisfy all the following geographical criteria;
3.2.1 The employee must be moving from outside the Salford area to one which is closer, they must be moving from out with a radius of 40 miles from the University which is deemed to be within a reasonable travel distance
3.2.2The employee must be moving to within a 20 mile radius of the University
3.2.3 The change in permanent residence must involve a reduce to the of at least 25 miles in the distance of the residence to the University
3.3Partners Relocating Together
Where more than one member of a household is to become a University employee, and both are eligible for relocation andremoval expenses, it should not be assumed that each will receive the benefit. The level of benefit approved will be reduced to 50% per household member so the maximum allowance will apply per household and not per employee.
3.4Relevant Claims
Employees will only be eligible for the reimbursement of the costs as outlined in section 4 of this procedure.
3.5Time Limits
3.5.1 Employees will only be eligible for the reimbursement of the costsif the claims are made within 12 months from the date of them joining the University i.e. start date.
3.5.2 Additionally all claim forms must be submitted within 3 months of the expense being incurred by the employee who can submit multiple claim forms.

4.Permissible & Non Permissible Costs for Reimbursement

4.1 Permissible Costs
There are a number of permissible costs which may be reimbursed under the University’s procedure, these are approved and agreed at the University’s discretion and may not include all the categories of costs as outlined in the HMRC rules. Outlined below are the costs the University deem permissible.
4.1.1 Professional service costs associated with the sale of old residence and purchase ofnew residence:
-Solicitors fees in respect of the sale and purchase
-Search, survey and property enquiry fees
-Valuation fees
-Land registry fees
-Estate agent fees
4.1.2 Transporting the employee’s belongings to the new residence only where the employee has provided the University with 3 estimates for these costs – the lowest of which must be used:
-Moving normal household effects within the UK
-Temporary storage of domestic belongings for a period of up to three months
-Insurance of domestic belongings during transit and whilst in storage
4.1.3 For travel and accommodation associated with the move to the University will reimburse for the following;
-The reasonable travel costs* of 1 visit by the employee and spouse/partner (only) to visit the area to locate new residence. Reasonable costs can be found in more detail in the University’s Interview Expenses Procedure Document.
-The costs for the employeeand spouse/partner (only) to spend up to 3 nights in a local hotel/B&B up to the value of £90 a night including breakfast outside greater London or £85 without breakfast. The overnight stays must be a requirement for the employee to review buying options for their permanent residence within the local area.
-The reasonable costs of a single journey for the family to travel from the former residence to the new one
4.1.4Reasonable costs of alteration to and/or re-laying/re-fixing of carpets and curtains and appliances.
4.1.5 For short-termaccommodation costs these will be reimbursed in exceptional circumstances only for a maximum period of up to 3 months when;
-Agreed by the recruiting manager and HR in advance
-The employee is actively looking to purchase permanent residence in accordance with 3.2
-The short-term accommodation is within 20 miles of the University
-Costs must be incurred once the employee has started with the University, whilst waiting for the new permanent residencewill be paid.
4.1.6 Only costs incurred for which original itemised receipts are provided are permissible. Additionally only original quotations/suppliers invoices will be accepted.
4.2 Non Permissible costs
The following listsnonpermissible costs and will not be reimbursed, please note this list is not exhaustive.
4.2.1 These costs associated with the purchaseor sale;
-The payment of mortgage or housing subsidies if the employee moves to an area of higher housing cost
-The interest payments on the mortgage of the employee’s existing home
-The cost of disconnection and reconnection of utility services
-The redirection of mail
-The cost of stamp duty
-The mortgage arrangement fees
-Council tax charges whilst properties are empty
-The compensation for losses incurred on sale of property or personal belongings
4.2.2 These costs associate or transportation or storage of goods;
-Costs where 3 quotes have not been obtained and provided to the University, or where the lowest cost provider has not been used.
-The separate removal of individual items, for example a piano
-The removal of motor vehicles, livestock or domestic animals
-The separate removal of work related equipment e.g. laboratory items, files and cabinets, books or computers other than those owned personally (the staff member would normally seek financial assistance from the relevant department for reimbursement towards these specific work related costs)
4.2.3These costs associated with travel and accommodation to assist with the move to the University will not be reimbursed;
-Any first class travel costs will not be reimbursed
-Any overnight stays to look at anything other than the purchase of a permanent residence i.e. to look at short term accommodation
4.2.4 The purchase of new carpets, curtains and appliances.
4.2.5These costs associated with short-term accommodation will not be reimbursed;
-Any accommodations costs incurred before the employee starts with the University (unless International relocation or as per point 4.1.3)
-Any accommodation costs if the employee is not looking to actively relocate their permanent residence i.e. their permanent residence remains outside the geographical limits and they stay in the Salford area during the week
-Any hotel costs (unless International relocation)
-Accommodation costs which have not be pre-approved by the recruiting manager and HR
-Any travel costs to the University
4.2.6 In order to comply with financial regulations the University will not accept photocopies of itemised receipts and/or credit/debit card statements
4.2.7 The University will not reimburse employees for any subsistence or travel costs (except as per point 4.1.3) incurred.

5.International Relocation & Removal

For any new employees joining the University from outside of the UK the University will reimburse up to onemonth’s gross salary in addition to the standard £8,000 to meet the costs of overseas relocation and removal. The same criteria in relation to approval, eligibility and permissible costs apply with the following additions/exceptions.
5.1 Non Permissible costs for International
-The costs of obtaining visas and passports
-Insurance costs
-Any airfare which is not pre-approved by the University
-Any other costs not pre approved or not deemed permissible by the University.

6.How to make a claim

In order to make a claim for the reimbursement of relocation and removal expenses employees must do the following;
-Read the reimbursement of relocation and removal expenses procedure to understand if their proposed claim is eligible
-Discuss the claim with the relevant manager (line manager/recruiting manager/HR)
-Complete the Claim form found in appendix 1
-Complete and sign the declaration in relation to the payback of these expenses should they employee leave the University within 3 years of joining
-Submit a completed claim form to HR Shared Serviceswith all supporting documentation (i.e. original itemised receipts, quotes from service providers etc) within 3 months of incurring the costs
-Once approved the reimbursed payments will be processed via finance
N.B Employees can submit multiple claim forms.

7.Queries on Claims

If you have a query regarding an outstanding claim you should initially discuss this with your line manager following which you should contact the HR Shared Service Team, you can e mail or call 52112.

8.Time Limits for making claims

8.1 Time Limits
The time limits to claim tax relief associated with the reimbursement of relocation costs are determined by HMRC. In general the reimbursement of costs must be made within one year of the appointment. This is because the costs must be incurred, and a claim for reimbursement made, prior to the end of the tax year that follows the one in which the appointment was made. (A tax year runs from the 6 April in one year until the 5 April in the following year.) For example, for an appointment made in March 2009, the completed claim for reimbursement must be submitted, and payment made within the 2009 - 2010 tax year and no later than the 5 April 2010.Time limits for making claims are outlined below.
8.1.1 Employees can only submit a claim form once they have A) already incurred the cost and B)started with the University
8.1.2Employeesmust submit a claim form within 3 months of incurring the costs
8.1.3All claim forms must be submitted within 1 year of joining the University
8.2 Extension of time limit
In certain very limited circumstances, such as school age children taking exams or difficulty in selling the former residence, HMRC may consider a request to extend the time limit. If an employee believes their circumstances support seeking an extension to the time limit they must contact the HR Services team as soon as possible so they may approach HMRC on their behalf.

9.Payback upon Resignation within 3 Years

An employee who voluntary resigns within 3 years of joining the University will be required to payback some of the expenses which have been reimbursed to them. The payback amount is based on the following table;
Length Of Service / Payback %
Less than 1 years service / 100%
Over 1 years service but less than 2 / 50%
Over 2 years service but less than 3 / 25%
Over 3 years service / 0%
The payback sum will be automatically deduced via finance/payroll from the employee’ssalary; this could include their final salary or their salary paid during the notice period and is subject to the agreement in appendix 1.

10.Variation

The terms for the reimbursement of any relocation or removal expenses may vary at any time at the Universities discretion.

11.List of Appendices