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Tax and Funding Workshops. Tax and Funding Workshops. up next… Stephen Potter (Open University). Tax and Travel Plans. Stephen Potter Professor of Transport Strategy [email protected] Transport and Tax .

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Tax and Funding

Workshops


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Tax and Funding

Workshops

up next… Stephen Potter (Open University)


Tax and travel plans l.jpg

Tax and Travel Plans

Stephen Potter

Professor of Transport Strategy

[email protected]


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Transport and Tax

  • Unless a specificexemption is made, employer support to staff for commuting is treated as taxable ‘income in kind’

    • NOTE: for non-employees - students, customers or visitors, Travel Plan benefits are not taxable

  • For business travel, payments are tax exempt unless limits are passed or a private benefit provided


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Commuting support and Travel Plans

  • Until 1999, employer-provided car parking was the only major exemption (worth at least £500 per annum)

  • From 1999 many Travel Plan measures have become exempt from Income Tax and National Insurance Contributions (NICs)

  • Tax is on marginal cost to employer (so bulk or negotiated discounts are tax free)

  • Small benefits usually treated as ‘trivial’ (e.g. prize draws for car sharers etc.)

Edinburgh Royal Infirmary


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Loans and Salary Sacrifice Schemes

  • Interest-free loans to buy season tickets, a bicycle or anything legal

    • up to £5,000 in any tax year.

  • Salary Sacrifice can be used to purchase anything subject to a tax concession. Mainly used for bicycles (also bus tickets/passes)

    • The employee agrees a cut (‘sacrifice’) in their pre-tax salary made up for by a benefit by their employer.

    • This effectively cuts the cost by at least a third

    • Salary Sacrifice also used for pensions, childcare, healthcare etc. HR departments are getting keen on this method – saves employers’ NICs too.


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Works Buses

  • Employer-provided works buseswith 9+ seats used for commuting

    • Occasional use for other trips (e.g. lunchtime shop runs) is OK


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Public Bus Services

  • The benefit to employees of employers paying operators to improve public bus services to your site(s) are tax free.

  • Contracts with bus operators can include discounted or free fares for staff.

    • But other ways to subsidise tickets are still taxable (e.g. giving away tickets)

    • So you must subsidise in the right way to be tax efficient

    • Some bus salary sacrifice schemes are not strictly legal


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Bicycle Exemptions

  • The provision of Bicycles and Bicycle Safety Equipment (e.g. helmets and lights) has been exempt from tax since 1999.

  • The provision of cyclists breakfasts are also exempt from tax

  • Bicycle maintenance, rescue services etc. ARE liable to tax (but hopefully not for long)


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Carshare Backup

Alternative backup ‘get-you-home’ transport for car sharers is tax-exempt (up to 60 trips a year)


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Taxable Travel Plan Incentives

  • Payments to give up car parking rights (‘Cashout’)

  • Vanpools

  • Any other cash incentives

    • (prize draws seen as ‘trivial’)

  • Subsidies to train, tram or Tube fares - or bus fares where there is no contract with the operator

  • Flexible schemes (vouchers, points ‘Green Miles’) need to be carefully designed….

    • They could be taxable on the whole package if they contain a mix of taxable and tax exempt measures


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Business Travel

  • Some travel plans include business travel

  • Mileage expenses for use of employee’s own vehicles, has a tax-free limit of:

    • 40p/mile car mileage rate

    • Additional 5p a mile for car passengers

    • 24p mile for motorcycles

    • 20p a mile cycle mileage rate

  • Few (20%) employers encourage car sharing for business by paying a passenger rate


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    Travel Substitution

    • Provision of equipment to homework is tax free (even if there is incidental private use, because there is no additional cost to the employer associated with private use)

    • Any cash payments to incentivise homeworking and teleconferencing liable to tax (unless a ‘trivial’ prize draw etc)


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    Overall…...

    • Tax is less of an issue for Travel Plans than it was a few years ago

    • Some key areas remain in the tax net

    • In some cases the tax position can be a bit hazy (Salary Sacrifice for bus fares is one)

    • Be careful with mixing tax liable and tax free measures in a package

    • There are opportunities to ‘green’ business travel, which can be tax and cost effective, but are little used.


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    Advice and Guidance

    • Potter, Stephen (2008): Tax and Travel Plan Measures, National Business Travel Network Advisory Note 1 (download from: http://www.nbtn.org.uk/NBTN_ADVISORY_NOTE_1.pdf

    • HMRC: Expenses and Benefits: A Tax Guide. (download from: http://www.hmrc.gov.uk/guidance/480.pdf

    • DfT Cycle to Work Implementation Guidance is downloadable from: http://www.dft.gov.uk/pgr/sustainable/cycling/cycletoworkschemeimplementat5732

    • Check with your local Inland Revenue Office


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    Tax and Funding

    Workshops

    up next… Paul Curtis (LEPT)


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    ACT Travelwise ConferenceThe EC Supporting Sustainable Transport in Urban Environments Paul Curtis14th November 2008


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    Overview

    • LEPT

    • European Commission

    • Funding Programmes

    • Budgets

    • What actions they will fund

    • Bidding Process

    • Examples of EU sustainable transport projects

    London European Partnership for Transport

    www.lept-eu.org


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    LEPT

    Coordination

    Preparation

    Implementation

    Dissemination

    London European Partnership for Transport

    www.lept-eu.org


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    Public Sector Structure

    London European Partnership for Transport

    www.lept-eu.org


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    Policy & Funding set by Mayor of London

    Management Committee – Sub-regional

    Steering Group – Borough Officers

    EC Funding Programmes

    London European Partnership for Transport

    www.lept-eu.org


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    European Commission

    London European Partnership for Transport

    www.lept-eu.org


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    European Commission

    London European Partnership for Transport

    www.lept-eu.org


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    Levels of Project Funding

    • EU Budget 2007-13: €800bn

    • €4bn (£2.85bn) for Transport

    • €2.35bn (£1.65bn) for Energy

    • €1.89bn (£1.35bn) for Environment

    London European Partnership for Transport

    www.lept-eu.org


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    Funding Programmes - budgets

    • Intelligent Energy Europe STEER-Energy (€1.5m)

    • INTERREG IVB - ERDF (€5m)

    • INTERREG IVC - ERDF (€3m)

    • LIFE+ - Environment (€15m)

    • FP7 - Sustainable Surface Transport - R&D (€4m)

    • CIVITAS - Catalist - Transport&R&D (€40k)

    London European Partnership for Transport

    www.lept-eu.org


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    Funding Programmes

    • Intelligent Energy Europe STEER – Energy

    • Alternative fuels and clean vehicles

    • Raising awareness of availability

    • Promoting procurement of clean vehicles fleets

    • Energy Efficient Transport

    • - Increase modal share of walking and cycling

    • - Increase the take up of Travel Plans

    • - Freight consolidation & fuel-efficient fleets

    London European Partnership for Transport

    www.lept-eu.org


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    Funding Programmes

    • INTERREG IVB - ERDF

    • Tackle common problem in geographical region EG:

    • Increase take up of Mobility Management in urban areas by developing and piloting models to ease congestion:

      • business engagement

      • multi sector partnerships

      • alleviating bottle necks around major transport generators

      • travel plans

      • measurable outputs – Co2

    London European Partnership for Transport

    www.lept-eu.org


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    Funding Programmes

    • INTERREG IVC - ERDF

    • Transfer of Best Practice to improve effectiveness of local policies: Energy and sustainable transport.

    • Travel Awareness

    • Work and School Travel Plans

    • Road Safety

    • Clean Vehicles

    • Policy and Integration

    London European Partnership for Transport

    www.lept-eu.org


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    Funding Programmes

    LIFE+ - Environment

    Air: To achieve levels of air quality that reduce risks to human health and the environment.

    Urban environment: integrated environment strategies for urban areas

    Noise: To contribute to policy development and implementation on environmental noise.

    Climate-friendly: Policies and strategies

    London European Partnership for Transport

    www.lept-eu.org


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    Funding Programmes

    • FP7 - Sustainable Surface Transport - R&D

    • Urban Freight delivery systems

      • - Promote Green procurement tenders for freight delivery

      • - Consolidation centres

    • New Transport Concepts – Intermodality

    • Behavioural change – analysis of approaches

    London European Partnership for Transport

    www.lept-eu.org


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    Funding Programmes

    • CIVITAS - CATALIST - Transport&R&D

    • Maximise impact of CIVITAS activities: chose 1 scheme

    • Local authorities, PT operators

    • Emphasis on local public – private partnerships

    • Political commitment essential

    London European Partnership for Transport

    www.lept-eu.org


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    Bidding Process

    • Competitive Bidding Process

    • Develop project concept

    • Develop project consortium

    • Call for proposals

    • Consortium negotiations – WPs & budget

    • Political sign off, submit

    • EC Contract negotiations

    London European Partnership for Transport

    www.lept-eu.org


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    Bidding Process

    • Programme Requirements

    • No. Partners

      • CIVITAS 3-6 partners

      • Interreg IVC up to 18 partners

    • Type of partners

      • Local government, NGOs, Research institutions, New Member States

    London European Partnership for Transport

    www.lept-eu.org


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    Method of Funding

    • Some R&D at 100%

    • IEE at 75%

    • INTERREG IVC at 75%

    • Most at 50%

    • Needs Match Funding

    • Staff Time Eligible

    • Staged Payments

    London European Partnership for Transport

    www.lept-eu.org


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    EU sustainable transport projects

    London European Partnership for Transport

    www.lept-eu.org


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    LEPT Projects

    London European Partnership for Transport

    www.lept-eu.org


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    ASTUTE - Walking & Cycling

    1. Safety & Security Concerns

    2. Lack of Infrastructure & Support

    3. Poor Public Perception & Lack of Awareness

    4. Inadequate Urban Environment & Design

    5. Accessibility & Health Issues

    6. Congestion and Air Pollution

    7. Lack of Public Sector Support

    8. Lack of Education & Training

    9. Lack of Private Sector Support

    10. Inadequate Information

    London European Partnership for Transport

    www.lept-eu.org


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    ASTUTE

    • Travel Plan Bromley Council

    • Improved facilities, information and publicity

    • After 1 year (started in 2007):

      • Increased walking from 9.5% to 12.5%

      • Increased cycling from 1.5% to 4%

      • Decreased car use from 69% to 61%

    London European Partnership for Transport

    www.lept-eu.org


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    COMMERCE - WTPs

    • 6 EU Cities & EPOMM

    • European Platform on WTPs

    • Local Travel Plan Fora

    • Skill Share

    • Pan - European Awards

    • Pan - European Standards

    London European Partnership for Transport

    www.lept-eu.org


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    PIMMS TRANSFER

    • 15 partners – 7 NMS

    • Mobility Management Study trips

    • Master classes

    • Pilot projects

      • Carbon Trading – personal / municipal

      • International school challenges – reduce car use

      • Hotel Travel Plans

    London European Partnership for Transport

    www.lept-eu.org


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    CIVITAS

    • Ploiesti (RO) – CIVITAS SUCCESS

    • Creation of first real cycling (8km) and walking CLEAR ZONE (4.3km) routes in Ploiesti

    • Pedestrian consultation, planning

    • Strategic plan for walking

    • Improved accessibility of urban centre

    London European Partnership for Transport

    www.lept-eu.org


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    TAPESTRY project

    • Research into effectiveness of Travel Awareness Campaigns: Seven Stages of Change Model

    • 1. Awareness of problem 2. Accepting responsibility

    • 3. Perception of alternatives 4. Evaluation of alternatives 5. Making a choice

    • 6. Experimental behaviour

    • 7. Habitual behaviour

    London European Partnership for Transport

    www.lept-eu.org


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    IEE STEER – Trendy Travel

    • Cork (EI)

    • “Emotional” promotion of sustainable transport modes such as cycling and walking

    • Student theatre on buses, cycling gear fashion shows, quizzes in shop windows

    London European Partnership for Transport

    www.lept-eu.org


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    Upcoming conferences

    • LEPT Annual Conference London – 4 December 2008 http://www.lept-eu.org/

    • ASTUTE Final Conference London – 5 December 2008 http://www.astute-eu.org/

    Paul Curtis www.lept-eu.org


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    Tax and Funding

    Workshops

    up next… Paul Henderson (LEPT)


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    ACT TravelWise Annual ConferenceBirmingham14th November 2008


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    Public Sector Structure

    Local Project Delivery

    Regional Policy

    Regional & Local Funding

    EPOMM Membership

    Funding Streams

    LA Consultation

    Regional and

    Devolved Administrations

    DfT / NBTN

    HA / ACT TW

    COMMERCE

    London European Partnership for Transport

    www.lept-eu.org


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    COMMERCE

    • 6 EU Cities & EPOMM

    • European Platform on WTPs

    • Pan-European Awards

    • Setting European standards for WTP

    • PAS500 – British specification on WTP

      • See www.commerce-eu.org

    London European Partnership for Transport

    www.lept-eu.org


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    PAS500

    • Project Managed by LEPT

    • Sponsored by TfL

    • Based on work by DfT & NBTN

    • Technical author Professor John Whitelegg

    • Produced by British Standards Institution

    London European Partnership for Transport

    www.lept-eu.org


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    PAS500

    • Specification, not Standard

    • Can be advanced up the pyramid

    • Full consensus needed for British Standard

    Control

    Consensus

    London European Partnership for Transport

    www.lept-eu.org


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    Why A PAS?

    • Faster development process than a full consensus British Standard

    • Capture and share knowledge across the industry

    • Credible document as a result of BSI’s independence in facilitating the process of consensus building with the stakeholders

    • A PAS can be produced for product specifications, codes of practice, guidelines, vocabularies

    • A document that provides a benchmark for assessment

    • A PAS has the potential to be developed for promotion into the formal standards process at the national, EU or international level

    London European Partnership for Transport

    www.lept-eu.org


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    BSI Process

    London European Partnership for Transport

    www.lept-eu.org


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    Steering Group

    • ACT TravelWise

    • ACT TravelWise Scotland

    • Department for Transport (DfT)

    • National Business Travel Network (NBTN)

    • Highways Agency

    • Transport for London (TfL)

    • TravelWise Northern Ireland

    • Welsh Assembly Government

    London European Partnership for Transport

    www.lept-eu.org


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    Stakeholder Consultation

    • Steering Group

    • ACT TravelWise membership

    • All LAs

    • LTT Article

    • ECOMM2008

    • Various articles on websites:

      • IEMA, businessstandards.com, businessgreen.com, travelinedata.org.uk, planningresource.co.uk, parkingreview.co.uk

    London European Partnership for Transport

    www.lept-eu.org


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    Scope

    • PAS500 is for use of any organisation planning or developing WTPs and applies to all WTPs and all the situations in which WTPs are initiated, developed and implemented. This includes (but is not limited to) WTPs:

      • Initiated as part of an organisational policy to manage transport impacts for the benefit of staff, the environment, corporate social responsibility, the reduction of congestion, the better management of parking and to foster good relationships with neighbours;

      • Submitted with planning applications and/or transport assessments as part of the development control process;

      • Designed to reduce pollution from motor vehicles as part of an air quality strategy

    London European Partnership for Transport

    www.lept-eu.org


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    Scope

    • This PAS applies to all the main components of transport generated by a particular site. These include:

      • Commuter trips made by staff

      • Trips made by staff in undertaking their duties or otherwise in relation to their work

      • Visitors to the site e.g. patients and visitors to hospitals, clinics and other NHS facilities, local residents visiting council offices, suppliers or customers making trips to businesses

      • Contractors involved in carrying out projects at a particular site e.g. building and construction, 2 Terms and definitions catering and cleaning

      • Students travelling to university and college campuses and sites

      • Trips made by all those carrying out work related tasks at premises covered by the travel plan (e.g. servicing plant and equipment, delivering supplies)

      • Trips made by delivery vehicles of all types where the delivery is directly the result of demands made by the site to which the travel plan applies

    London European Partnership for Transport

    www.lept-eu.org


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    Scope

    This PAS provides valuable requirements for organisations of all sizes but would be of particular use to workplaces or groups of organisations with more than 100 employees

    London European Partnership for Transport

    www.lept-eu.org


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    Scope

    • PAS500 does not cover:

      • The design of attractive walking and cycling facilities

      • Public or private bus, coach and train operations

      • The design and operation of public transport services

      • The detailed design and operation of car share and car club schemes

      • Specific detailed measures or interventions that are likely to succeed in reducing car trips

      • Setting specific targets, objectives or outcomes

    London European Partnership for Transport

    www.lept-eu.org


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    WTP Process (all)

    • Senior management support

    • Defining aims and objectives

    • Measuring baseline travel behaviour

    • Defining the targets to be achieved and the associated timescales

    • Identify a range of interventions

    • Implementation strategy and budgetary resources

    • Periodic review

    London European Partnership for Transport

    www.lept-eu.org


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    WTP Process (DC)

    • New sites will have to:

    • Establish preliminary modal split information (ref. best practice)

    • Provide trip generation data

    • Conduct a site audit

    • Commit to reducing SOV use and increasing sustainable alternatives

    • Identify a range of interventions

    • Integrate targets and aspirations into the recruitment process

    London European Partnership for Transport

    www.lept-eu.org


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    Classification Grades - Bronze

    • Must meet all above requirements and be publicly available (except commercially sensitive items) PLUS:

      • Have sufficient budget / resources allocated to achieve objectives

      • Be based on a survey, undertaken & analysed to identify travel behaviour of existing/proposed staff & visitors

      • Identify director/senior manager to have responsibility for travel plan strategy, implementation & progress

      • Include an implementation strategy giving clearly defined targets and milestones (min. 5 years)

      • Include marketing & communications strategy (min. five years)

    London European Partnership for Transport

    www.lept-eu.org


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    Classification Grades - Silver

    • Must meet all above requirements and Bronze requirements PLUS:

      • Survey details (questions, results, process of analysis) including how results will be used to achieve travel plan objectives

      • 1st year targets achieved OR

      • Review targets with full documentation and reasoning

      • Evidence of decreased SOV / increase in sustainable alternatives

      • Response rate of min. 30% of employees for travel survey

      • Evidence of communication of WTP measures / objectives to staff

      • Evidence of training for staff implementing WTP

    London European Partnership for Transport

    www.lept-eu.org


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    Classification Grades - Gold

    • Must meet all above requirements, including Bronze and Silver standards PLUS:

      • Be operational for at least 5 years

      • Survey undertaken and published at end of 5 years

      • Survey acheives min. 50% response rate

      • All targets must have been achieved, with supporting evidence

      • Good practice displayed in WTP has been actively disseminated (presentations, articles etc)

    London European Partnership for Transport

    www.lept-eu.org


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    Supporting Information

    • Appendices containing:

    • Glossary including components of effective TDM strategy

    • Publications, government guidance and best practice

    • Survey checklist

    • Survey methodology including trip generation databases

    • Sources of information and examples of target setting

    • Classification grades matrix

    London European Partnership for Transport

    www.lept-eu.org


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    Accreditation

    • Accreditation body needed to administrate and accredit

    • applications

    • Needs to be accredited by UKAS

    • ACT TravelWise developing business case to do this

    • Fee per application – profits reinvested in network

    • Established in early 2009 – Launch at spring conference?

    London European Partnership for Transport

    www.lept-eu.org


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    Next Steps

    • PAS500 published 21st November

    • Publicity and Promotion of standard

    • Engagement of Planning Authorities

    • WTPs prepared to PAS500 specifications

    • Accreditation body set up by Spring 2008

    ANY QUESTIONS?

    London European Partnership for Transport

    www.lept-eu.org


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    Thank You

    Paul Henderson

    Head of European Projects

    [email protected]

    London European Partnership for Transport

    www.lept-eu.org


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    Tax and Funding

    Workshops


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