Financial Assistance

Financial Assistance to employees on appointment

1. Purpose

This Staff Note outlines the level of assistance available to new employees who relocate when they join the Authority.

2. Eligibility

2.1 - The Authority is prepared to offer financial assistance to newly appointed employees on permanent, temporary or fixed–term contracts. Eligible are employees who maintain a house of their own and this includes employees who own their own house or who are in accommodation for which they pay rent. You must live more than 20 miles from the new place of work and demonstrate that you are taking reasonable steps to move as soon as possible to be within easier travelling distance of the new place of work (or otherwise to reduce the time and stress factors of home to work base travelling).

2.2 - Payment will not be made where the employer of the spouse or partner reimburses relocation and other expenses.

2.3 - In no case will an employee make a net financial gain from the assistance given.

2.4 - The Chief Executive is authorised to withhold payment of these allowances where it is thought that the employee is not complying with these requirements or is not eligible for some other reason. Allowances shall not be unreasonably withheld.

2.5 - Payments made under the scheme will only commence with effect from when employment with the Authority starts and not before.

3. Assistance Available

3.1 - Lodging/Travelling Allowance

For a period during which you continue to necessarily maintain your home elsewhere, you may claim:

• either lodging allowance of up to £100 per week (£20 per normal working day) and reimbursement of the cost of one return journey to former home once every two weeks. Tthe amount reimbursed will be based on the cost of standard fares on public transport or on the mileage rate for a leased car and limited to £190 maximum per return journey in either case;
• or travelling allowance based on the cost of standard fares on public transport or on the mileage rate for a leased car subject to a maximum of the lodging allowance, calculated on a daily basis;
• for a maximum of 40 weeks.
  

3.2 - Removal of furniture and effects, and storage.

Full reimbursement of expenses, including insurance, based on the lowest of three competitive quotations up to a maximum of £2,500 (before tax). Storage, where necessarily incurred, to be subject to a maximum of 52 weeks.

3.3 - Second removal
Where you move into temporary accommodation as your only home and, within 52 weeks move into permanent accommodation (and thus avoid all lodging and home visits charges), the cost of the second removal (subject to three competitive quotations) will be reimbursed.

3.4 - Two days extra paid leave will be granted for actual house removal. If these are taken at the first move then a second move will not result in entitlement to two more days extra leave.

Note:
An eligible employee may choose between claiming the lodging/travelling allowance and claiming the cost of a second removal (where incurred) depending upon which is most financially beneficial to them. However, there may be tax implications on any relocation monies paid if there is a delay in payment as a result of an individual deciding which option to choose. The Authority can not give advice on individual taxation issues.

3.5 - Reimbursed Fees
Legal and other professional fees and stamp duty necessarily arising out of the sale of and/or purchase of a house will be reimbursed up to a maximum of £3,700. Expenditure will only be reimbursed on the production of receipted accounts for approved fees.

3.6 - Settling-in allowance
This allowance is payable to you if, prior to and since taking up your appointment you were/are the main contributor to the household ie you are/were not living with parents or in rent-free lodgings etc. A grant of an automatic allowance of £600 will be made when all the other payments are complete, ie you have taken up residence as a householder, upon production of appropriate receipts (eg for curtains, carpets or work on the new abode).

4. Applications

An application for assistance outlined above should be made on forms available from the Human Resources Department. You will also be required to sign an undertaking (Form P11A) that if you leave the Authority's employment within two years you will repay 1/24th of the payment for each month unexpired of the two years. This condition would not apply in the case of termination of the appointment by the Authority and no recourse would be made to dependants in the event of death of the employee.

5. Taxable Benefits

Relocation payments can become a taxable benefit if paid more than 12 months after starting the new job. New employees should inform the Chief Executive if the circumstances of their house sale or purchase might give rise to the payments becoming taxable. The Chief Executive will consider the circumstances and may bring the matter to the attention of the Scrutiny Committee. The Committee may, in appropriate cases, agree to increase the payment to be made to the officer to recognise the net loss due to taxation. Any increase will only be paid after confirmation from the Inland Revenue that they will tax the allowances paid.