Honoraria and allowances for Council and Advisory Panel members

• Introduction
• Travel and subsistence allowances
• Insurance cover
• Class of travel
• Taxis
• Car hire
• Use of private motor vehicles
• Mileage allowance
• Garage expenses, tolls and ferries
• Overseas travel
• Accommodation and meals
• Passenger allowance
• Income tax
• National Insurance
• Value Added Tax
• Printable version

Introduction

1.1 Members of Council, with the exception of Council employees, 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 which occur.

1.2 Members of the STFC's advisory bodies, with the exception of those members of public funded bodies set out in Paragraph 1.1, receive a standard fee of 170 per day and those chairing a Panel/Committee a fee of 230 per day, for attendance at meetings and other STFC business approved by the Executive.

1.3 Members are expected to present their opinions on the strength of the issues raised and where appropriate the strength of the application at a meeting with other members. This is an important part of their duties. The attendance fee is payable once their duties are completed, ie attending the meeting, however it covers all claims for duties performed in advance of the meeting. If the meeting is not attended it will be left to the discretion of the Council 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.

Travel and subsistence allowances

1.4 Members will be reimbursed their actual reasonable expenses incurred in attending meetings or other STFC business, provided the rules set out below are observed (late claims may be disallowed). Members should take proper account of the need for economy, and should arrange, wherever possible, to travel by the cheapest possible route and means. The Executive will always be prepared to advise members on individual circumstances before journeys are made. It should be understood that the allowances, whether on account of travelling or subsistence, are intended only to reimburse amounts actually expended, but see Paragraphs 1.21 to 1.24 for details of income tax, National Insurance and VAT arrangements currently in force.

1.5 Claims for reimbursement should be as detailed as possible. The method of travel, expenditure on fares, taxis, etc, should be specified and, where appropriate, supported by receipts. The time at which the claimant left home and arrived at the meeting venue plus departure and return home times must be stated on the claim.

The claim form (Excel speadsheet - 50kB - link opens in a new window) to be used is available, together with the form required to capture additional payments details for new payees (Excel speadsheet - 64kB - link opens in a new window).

Insurance cover

1.6 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 1.9). In all other cases (that is, where members voluntarily choose to supplement the existing insurance cover as a matter of personal choice), members must meet the costs of insurance. The STFC will not accept any liability for insurance claims where members themselves have made the arrangements.

Class of travel

1.7 Rail travel will be by Standard Class, except in exceptional circumstances and where agreed by STFC in advance of the journey. STFC will meet the cost of seat reservations where necessary, and of sleeping berths where overnight travel is required.

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

For overseas travel, members should contact the Executive to discuss the individual circumstances of the proposed journey.

Taxis

1.8 The cost of the reasonable use of taxis (eg where there is no adequate public transport) will be reimbursed, however receipts must be provided in the support of claims.

Car hire

1.9 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 1.6). Vouched expenditure on fuel will also be reimbursed.

Use of private motor vehicles

1.10 Members who prefer to use their private motor vehicles 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).

1.11 Although comprehensive insurance is not a requirement, members should note that the STFC will, in no circumstances, be responsible for repairs to a private vehicle which has been damaged while in use on STFC business.

Mileage allowance

1.12 Mileage allowances are payable when members use their private motor vehicles on STFC business for journeys for which it would, in all the circumstances, be reasonable and of benefit to the STFC for the vehicle to be used. There are two rates applicable.

1.13 The APPROVED rate is for journeys where no other means of transport can reasonably be considered to be viable, eg home to station, 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. Members who, because of disability, are unable to travel by public transport will also be paid at the approved rate in all cases.

1.14 The PERMISSIVE rate is for journeys where the member 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.

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

1.16 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 Inland Revenue for cars.

In the interests of health and safety members are advised not to drive more than 300 miles in a single day. 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 after a long haul flight; arrangements should be made for an overnight stay in such instances, or alternatively a taxi may be used for the journey home.

Garage expenses, tolls and ferries

1.17 Reasonable expenses incurred on parking, overnight garaging, tolls and ferries may be reimbursed in respect of journeys which qualify for the approved mileage rate. Vouchers 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

1.18 If it is necessary for a member 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, so that the appropriate advice can be given regarding travel and accommodation arrangements, and medical and insurance cover.

Accommodation and meals

1.19 All necessary accommodation and meals in respect of attendance at Council meetings will normally be arranged and paid on behalf of members by the Executive. Where this is not the case, members 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".

Passenger allowance

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

Income tax

1.21 Members are appointed on a personal basis and honoraria are taxable under PAYE procedure at the time of payment, unless the STFC receives instructions to the contrary from the Inland Revenue. To enable the Inland Revenue 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.

1.22 By agreement with the Inland Revenue, travel and subsistence allowances paid for all travel undertaken on behalf of the STFC by members, in the course of their functions as such, are not liable for tax or National Insurance contributions. This agreement will not apply to any member who makes arrangements to receive honoraria without being taxed under PAYE.

National Insurance

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

Value Added Tax

1.24 As stated above, in general honoraria, travel and subsistence expenses will be paid net of Income Tax and National Insurance Contributions. For fees or payments made to a person treated as an employee, HM Customs and Excise normally regard these as being outside the scope of VAT. This will not apply to any member who makes arrangements to receive their honoraria 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 HM Customs and Excise. Where there is a VAT liability the STFC will pay only on receipt of a valid VAT tax invoice.

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Printable version

- Honoraria and allowances (PDF - 39Kb) (link opens in a new window)

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