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Mar 20 Expenses Addendum: It is anticipated that University staff may personally incur additional expenses as a direct result of the impact of the Coronavirus outbreak, in order for them to continue working during the current exceptional circumstances. This policy sets out the University’s position in relation to such costs in order to assist staff, whilst providing Departments with a set of best practice guidelines to follow. This is to ensure that all staff are treated equitably and that the University uses resources efficiently. These measures initially took effect from 16 March 2020, to 30 June 2020 to cover the predicted peak period of the outbreak but have now been extended. |
Policy
The overall intention is that the University should reimburse the cost of business calls made by employees using their own telephones (including mobiles) and that employees should (subject to the economies of collecting trivial sums) reimburse the University for private calls made using University resources.
Payments or the provision of any vouchers, to employees for use of their own mobile telephone are not normally reimbursed.
Mobile/office phones
Procedures
If the University provides the telephone for business and it is used for private calls, the costs incurred for these private calls will need to be refunded to the University and VAT must be charged on these calls. Cash or personal cheques reimbursements should be banked and receipt recorded within the Accounts Receivable of UFS.
E.g.
- Private calls totalling £12 (£10 plus VAT of £2) show on the bill that has been paid by the University
- The employee should reimburse the University the total cost of the calls plus VAT i.e. £14.40 (£12 plus £2.40 VAT)
Tax implications
| Private calls refunds | This is not a taxable benefit and does not need to be reported on the P11D, However VAT must be charged (see above). |
| Payments for use of own phone | Such payments (and any vouchers) will normally be liable to tax and must be declared on the P11D return at the end of the tax year. |
| Mobile rental allowances paid for Individuals on call |
Such payments are classed as a taxable benefit but should be made via Payroll on a CHRIS82 form rather than be declared on a P11D. |
Home telephones
Procedure
The cost of work-related calls on home telephones may be reimbursed via an expenses claim form, on condition that copies of itemised bills can be provided.
Tax implication
- Any contribution that the University makes towards the cost of the line rental is a taxable benefit and should go through the Payroll system using a payroll form CHRIS82.
- If the employee has a dedicated business line, this also needs to be declared on the P11D but the employee will be able to claim relief on their own Tax Return.
- The only exception to the above are members of staff who are on standby for emergency call outs where a threat to life might exist. The University will pay the telephone bill of those individuals. The Individual will reimburse the University the cost of private telephone calls made. At the end of the tax year the total bills paid and the contributions made by the employee must be included on the P11D.