Relocation and removal expenses SOP

1. Aim
2. Scope
3. Link to overarching policy
4. Procedure or implementation
5. Appendices

1 Aim

The purpose of this procedure is to provide an opportunity for managers to offer an enhanced employment package to ensure that appropriate people with the right skills are attracted and recruited into the trust.

This includes assisting new employees who are required to relocate as a result of taking up employment with the trust by:

• helping with the costs of moving home
• providing assistance to aid the temporary disruption to normal home life
• providing a relocation package that is fair and equitable
• providing a relocation package that uses public funds appropriately

2 Scope

This procedure applies to those employees who are directly employed by the trust and for whom the trust has legal responsibility.

3 Link to overarching policy

This procedure should be considered in conjunction with the appointment of staff policy.

4 Procedure or implementation

• There is no automatic right for relocation or removal expenses. Eligibility for assistance is determined by the nature of the role appointed to, the distance of the new employee’s main residence from the base point of the new role and the time taken to make the move.
• The extent of the financial reimbursement is equivalent to a maximum value of £8,000 in line with the HM Revenue and Customs limit. The employee is responsible for any statutory income tax and national insurance liability incurred as a result of receiving the relocation expenses. As the relocation is job related the first £8,000 is exempt from tax provided that certain conditions are met, including that the new property is the employee’s main residence.
• HMRC have also set a time limit on relocation, which must be completed before the end of the tax year (5 April) after the one in which the employee takes up their new position. At the time of being offered relocation assistance the employee will be advised of the date by which their relocation must be completed.
• The line manager has responsibility for identifying if an applicant or new employee is eligible to apply for relocation or removal expenses
• The care group director or corporate head of service or deputy care group director is responsible for confirming commitment to provide financial reimbursement for relocation or removal expenses
• Final approval of all relocation or removal expenses applications is by the executive director of people and organisational development and the executive director of finance and performance.
• Employees must advise their line manager if their partner is eligible to receive any financial assistance (from the NHS or elsewhere) for their relocation. In such cases the trust reserves the right to revise the allowances listed in this procedure or to not meet the expenses incurred as part of the relocation.
• The relocation expenses application form can be found at appendix A and must be completed in order for reimbursement to be authorised.
• The relocation expenses claim form can be found at appendix B and must be completed and authorised in order to receive reimbursement.

4.1 Eligibility criteria

New employees may be eligible for financial assistance with their relocation if they are appointed to a position within the trust and:

• the position is considered a ‘hard to recruit to’ post as identified by the executive director of people and organisational development (for further advice contact the HR department)
• the employee is required to change their sole or main residence as a result of starting their employment with the trust
• the employee’s old home is a significant distance of at least 40 miles from their new home and or base of work
• Be undertaking a move to live within a 10 mile radius of the base point. Relocation to a location which is in excess of 10 miles from the base point must be approved by the executive director of people and organisational development and or executive director of finance and performance before committing to the purchase or rental of a property as failure to do so may result in committal to expenses which may not be reimbursed
• The employee resides during the majority of the working week in the new property that they are claiming relocation and or removal expenses for
• where a new home is being purchased, the value of the new home should be of similar value to the old home, where the value of the new home is significantly higher, reimbursement for assistance with the house purchase must be approved by the executive director people and organisational development and or executive director of finance and performance before committing to the purchase or rental of a property as failure to do so may result in committal to expenses which may not be reimbursed

4.2 Elements of relocation assistance

It is anticipated that the £8,000 would be equally split between the

• purchase of a new property and associated costs
• payment of rent on a temporary property and temporary travelling or subsistence allowances.

Any deviation from this must be approved in advance by the executive director of people and organisational development and or the executive director of finance and performance.

The following elements may be reimbursed up to a maximum of £8000 as part of the relocation package on production of receipted expenses:

4.2.1 Assistance with removal of furniture and effects

An estimate of the cost of removal must be approved as part of the relocation expenses application process.

Three competitive written quotes must be obtained and the lower reimbursed.

The written quotes should be subject to the conditions under which removals are ordinarily undertaken and should not cover special services. Any costs incurred outside of normal conditions will be at the employee’s own cost.

The cost to be reimbursed will be for the removal of furniture and effects from the employee’s old home to their new home including pedal cycles and garden furniture and may include a packing or unpacking service. However, this will not include removal of any special items for which you have to make separate arrangements. Livestock and animals other than domestic pets are not covered as part of this arrangement and therefore the employee is liable for the cost.

4.2.2 Storage

Charges for the storage of furniture and effects will be reimbursed for up to 12 months where the necessity for storage arises from the move. If any furniture remains in storage after the expiry of the 12 month period, further reimbursement may be made dependent upon the circumstances and must be approved by the executive director of people and organisational development and or executive director of finance and performance.

4.2.3 Contents insurance

Extra costs of insuring furniture in transit or in store will also be met as appropriate.

4.2.4 Assistance with house purchase

If purchasing a property and it is the first permanent unfurnished accommodation in the area, the reimbursement of legal and other expenses will be made as follows:

• solicitors fees
• legal Expenses
• expenses in connection with mortgage and loan including guarantee and survey fee (excluding interest)
• cost of private survey
• electrical wiring test
• drains test

Stamp duty and land registration fees can be included in the £8,000 removal expenses limit, where the purchase price of the new property is comparable in value to the old property

Further information regarding the rules in relation to stamp duty and land registration fees for first time buyers who purchase a property can be found here.

Where the purchase price exceeds the aforementioned limit, reimbursement in respect of stamp duty and land registration fees will be limited to the amount that would be payable on new property that is comparable in value to the old property.

4.2.5 Assistance with a house sale

The reimbursement of legal and other expenses will be made relating to the sale of a property in which a new employee was living immediately before the appointment and will be made as follows:

• solicitors fees
• legal expenses incurred on redemption of a mortgage
• estate agents and auctioneers fees and services (where a house agent or auctioneer is not appointed, reasonable expenses on advertising costs may be reimbursed)
• other reasonable expenses will be considered as necessary

4.2.6 Temporary rented accommodation

The new employee may be reimbursed reasonable expenses associated with a tenancy agreement including estate agent fees should they need to rent accommodation in the new area.

4.2.7 Travelling or subsistence expenses

Reimbursement of travel costs for the purposes of visiting the new area will only be paid for two visits and will be limited to the distance between their current home and their new base point’s Town Centre, for example, Doncaster, Scunthorpe, Rotherham etc.

A claim for reimbursement of the cost of up to two journeys can be made in connection with the new employee and their family visiting the new home.

Travel and subsistence costs will be paid at reserve rate.

New employees who are unable to find suitable accommodation but would otherwise qualify for relocation or removal expenses may be reimbursed their excess daily travel costs from their home to their new base point however the following conditions must be met:

• the reimbursement shall not exceed the extra cost incurred on the basis of bus fares and second class rail fares (including season tickets)
• the rate of reimbursement shall not exceed the trust’s long term rate of night subsistence allowance
• reimbursement shall continue only for as long as the trust is satisfied that you are making every effort to find suitable accommodation and is limited to the end of the tax year (5 April) after the one in which the employee takes up his or her new position
• if an offer of temporary accommodation is made and it is declined, reimbursement of travel expenses will not be made

4.2.8 Losses arising from educational arrangements

Where it is essential for educational reasons for the new employee to leave any of their children at a school in their previous area, there is discretion to make payments in respect of certain charges incurred. However, there are strict conditions, as detailed within the HMRC expenses and benefits guidance, therefore this must be discussed and approved by the executive director of people and organisational development and or executive director of finance and performance.

4.2.9 Miscellaneous expenses grant or continuing commitments allowance

These allowances are payable for additional expenses after taking up new appointment and occupying new permanent accommodation and should be discussed further with the trust.

4.2.10 Assistance with house purchase or advance of salary

New employees may be eligible for an advance recoverable from salary. Further advice should be obtained from the trust.

4.3 Repayment of financial assistance

It is expected that anyone in receipt of relocation or removal expenses will remain in employment with the trust for a minimum period of 2 years and employees will be required to sign the application form to this effect. Should an employee voluntarily terminate their employment or be dismissed due to gross misconduct before the expiry of the 2 year period, they will be expected to reimburse the trust the costs paid as part of the relocation package in accordance with the following scale:

• during the first 12 months, 100%
• 12 months to less than 16 months, 85%
• 16 months to less than 20 months, 65%
• 20 months to less than 24 months, 50%
• 24 months plus, 0%

This will be deducted from the employee’s salary during their notice period. Any outstanding balances will be invoiced and recovered accordingly.

4.4 Cancellation of proposed relocation

If an employee decides not to proceed with a planned relocation, any monies reimbursed to them in accordance with this policy, will be repayable to the trust.

If a planned relocation is cancelled due to factors outside of their control, no repayment will normally be necessary. However, this is at the discretion of the executive director of people and organisational development and or executive director of finance and performance.

4.5 Procedure for application for relocation expenses

In order to apply for relocation or removal expenses, the new employee should check whether they meet the eligibility criteria as detailed in section 4.1. Once this has been confirmed, the new employee should then arrange to complete the application and submit to their line manager who will then forward to the care group director or corporate head of service or deputy care group director and executive director of people and organisational development and executive director of finance for approval.

5 Appendices

5.1 Appendix A Relocation removal expenses application form

• Appendix A Relocation removal expenses application form

5.2 Appendix B Relocation removal expenses claims form

• Appendix B Relocation removal expenses claims form