Travel expenses, honoraria and fees for non-staff

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|Honoraria and Allowances (PDF-38kB) (link opens in a new window)

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Introduction

1. The Science and Technology Facilities Council (STFC) pays expenses, honoraria and allowances to individuals who are not employed by STFC for a number of reasons. This document sets out the basis on which each type of payment is made. In some cases, this core guidance is supplemented elsewhere by information specific to a particular area of activity.

Honoraria and fees

2. Members of Council (excluding civil servants and full-time employees of other Research Councils and Government-funded organisations) are entitled to receive an honorarium. Full-time employees of certain public bodies may receive an honorarium provided that the conditions of their main employment allow them to do so. In cases of doubt, the Executive should be consulted. The standard rate of honorarium effective from 01/10/2009 is £6,850 per annum; with an increased rate of £9,110 paid to those members who have the additional responsibility of chairing a Committee. Payments are made monthly in arrears. Members will be notified of any changes that occur.

Members of advisory panels

3. Members of the STFC's advisory bodies, with the exception of those excluded (per paragraph 2 above), receive a standard fee of £170 per day. Those chairing a Panel/Committee receive a fee of £230 per day for attendance at meetings and other STFC business approved by the Executive.

4. The attendance fee covers the meeting and duties performed in advance of the meeting. If the meeting is not attended it will be left to the discretion of the Executive as to whether the fee is payable. This may depend upon the amount of preliminary work performed in advance of the meeting and whether a written report is available.

Income tax

5. Members of Council and of Advisory Panels are appointed on a personal basis and honoraria are taxable under Pay As You Earn (PAYE) procedure at the time of payment, unless the STFC receives instructions to the contrary from HM Revenue & Customs (HMRC). To enable HMRC to obtain the correct tax code to pass to the STFC, members are sent Tax form P46, which should be completed and sent back to the STFC. Members wishing their honoraria or fee payments to be dealt with in any other way should make the necessary arrangements through their own tax inspector.

6. By agreement with HMRC, travel expenses for travel undertaken on behalf of STFC by members in the course of their duties as such, are not liable for tax of National Insurance contributions. This agreement does not apply to any member who makes arrangements to receive honoraria without being taxed under PAYE.

National insurance

7. By agreement with HMRC, National Insurance Contributions (NIC) will normally be calculated on a monthly basis. It is in members' interests to ensure that form CA72A is forwarded to the HMRC’s National Insurance Contributions Office, Deferment Services, if total annual earnings (excluding payment of honorarium, fees and expenses exceed £31,720 - the ceiling for NIC's), thus limiting the NIC liability of any fees claimed.

Value added tax

8. As stated above, in general honoraria, fees and expenses to members will be paid net of Income Tax and NICs. For fees or payments made to a person treated as an employee, HMRC normally regard these as being outside the scope of Value Added Tax (VAT). This will not apply to any member who makes arrangements to receive their honoraria/fees without being taxed under PAYE. In those circumstances there may be a VAT liability if a member is registered for VAT, either personally or in a partnership, and the member should consult HMRC. Where there is a VAT liability the STFC will pay only on receipt of a valid VAT tax invoice.

Travel and expenditure

9. Non-employees of STFC on approved STFC business will be reimbursed actual expenses in line with the rules set out below. All such persons must take proper account of the need for economy, and arrange, wherever possible, to travel by the cheapest possible route and means. The Executive will always be prepared to advise on individual circumstances before journeys are made.

10. Claims for reimbursement should be as detailed as possible and should be submitted promptly and wherever possible within 30 working days. The method of travel, expenditure on fares, taxis, etc, should be specified and supported by receipts.

Claim forms

11. The expenses claim form (Excel speadsheet - 76kB - link opens in a new window) to be used is available, together with the form required to capture additional payment details for new payees (Excel speadsheet - 48kB - link opens in a new window).

Insurance cover

12. The cost of insurance cover will only be reimbursed in cases where it is an integral part of the service purchased (see, for example, Paragraph 17). In all other cases (that is, where individuals voluntarily choose to supplement the existing insurance cover as a matter of personal choice), the costs of the insurance must be met by the individual. STFC will not accept any liability for insurance claims where members themselves have made the arrangements.

Class of travel

13. Rail travel will be by Standard Class. STFC will meet the cost of seat reservations where necessary, and of sleeping berths where overnight travel is required.

14. Air Travel will be in economy class and members are expected to take advantage of the most economic fares available.

15. For overseas travel, members should contact the Executive to discuss the individual circumstances of the proposed journey. See also paragraph 28.

Taxis

16. The use of taxis must be kept to a minimum. The cost of the reasonable use of taxis (e.g. where there is no adequate public transport) will be reimbursed. Receipts must be provided in the support of claims.

Car hire

17. The actual reasonable cost of car hire, including collision damage waiver when such insurance is a condition of hire, will be reimbursed (but expenditure on additional personal accident insurance is not reimbursable - see Paragraph 12). Vouched expenditure on fuel will also be reimbursed.

Use of private motor vehicles

Insurance

18. Individuals who choose to use their private motor vehicle on STFC business may do so, provided their insurance policies contain the following minimum requirements:

• normal third-party insurance as required by law for all road users, and including cover for damage to the property of third parties;
  
• cover for bodily injury to, or death of, any passengers;
  
• cover for use by the policy holder in person on STFC official business with provisions that:
  • receipt of mileage allowance does not constitute "hire", and receipt of a passenger allowance does not constitute "hire and reward";
    
  • indemnify the STFC as an employer against third-party risks to the same extent as the insured is covered by his/her own policy;
    
  • permit the carriage of STFC goods in the car (insurance of the goods themselves is not necessary).

19. Although comprehensive insurance is not a requirement, members should note that the STFC will not under any circumstances, be responsible for repairs to a private vehicle which has been damaged while in use on STFC business.

Mileage allowances

21. The approved rate is for journeys where no other means of transport can reasonably be considered to be viable, e.g.. cross country journeys, no hire car available. The current approved rate is 40p per mile and is applicable for journeys up to 130 miles a day. For journeys in excess of 130 miles per day the mileage allowance will be calculated as whichever is the greater of (a) 130 miles a day at the approved rate or (b) the actual mileage at the permissive rate. Individuals who, because of disability, are unable to travel by public transport will be paid at the approved rate in all cases.

22. The permissive rate is for journeys where the individual uses his/her car in preference to public transport or a hire car for his/her own convenience. The current permissive rate is 25p per mile.

23. The Executive will always be prepared to advise on individual cases before journeys are made. Individuals are strongly advised to consult the Executive before travelling in order to establish the appropriate mileage allowance rate for their particular journey.

24. Both the approved and permissive mileage rates are in line with the statutory (up to 10,000 mile) Approved Mileage Allowance payment (AMAP) rates set by the HMRC for cars.

25. In the interests of health and safety individuals travelling on STFC business are advised not to drive more than 300 miles in a single day and are expected not to use mobile phones (including hands-free models) whilst travelling. Journeys should be organised in such a way so as to avoid any excessive length of time spent driving. It is also not advisable to drive immediately after a long haul flight.

Passenger allowance

26. The passenger supplement payable on journeys attracting either the approved or permissive rate of mileage allowance is 2.0p per mile for each passenger.

Garage expenses, tolls and ferries

27. Reasonable expenses incurred on parking, overnight garaging, tolls and ferries may be reimbursed in respect of journeys which qualify for the approved mileage rate. Receipts should normally be produced when claiming reimbursement. When the permissive rate of mileage allowance is paid, these charges will only be met to the extent that the total cost to the STFC does not exceed the cost of the journey by public transport.

Overseas travel

28. If it is necessary for an individual to travel overseas in the course of official STFC business, then the Executive should be consulted as far in advance of the intended trip as possible, unless standard procedures have been put in place (eg. in some areas of activity for frequently made journeys). The Executive will advise regarding travel and accommodation arrangements, and medical and insurance cover.

Accommodation and meals

29. Where accommodation and meals have not been arranged and paid directly by STFC, individuals may be reimbursed reasonable expenses for accommodation and main meals. Receipts must be provided and members are reminded of the need for economy. Members should contact the Executive for guidance on what can be claimed as "reasonable".