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NHS MILEAGE PAYMENTS CONSULTATION 16 MARCH – 24 APRIL 2009
CONSULTATION MATERIAL • www.nhsemployers.org/mileage • Covering letter to all NHS Employers • Consultation document with briefing on motoring costs and mileage allowances • Questionnaire to be completed in partnership and returned
MILEAGE PAYMENTS • Intended to reimburse car owners (not lease cars) for using their vehicle for NHS Business • Covers ‘costs of motoring’: depreciation, tax, insurance, fuel etc (standing and running charges) • Cost of fuel is but one element of the total cost of motoring • Until the increase in rates in 2008 there had been no increase for at least 8 years • No NHS Mechanism for ensuring that mileage allowances reflect the changes in the cost of motoring
PRESENT ARRANGEMENTS • AFC Section 17 and Annex L & M • Medical and Dental Terms and Conditions of Service: Pay Circular MD 5/2008 • Trust/Board ‘Local Agreement’ (see Sect 17 par 17.1) • HMRC Authorised Mileage Allowance Payments (AMAP)
AFC SECTION 17 AND ANNEX L & MMEDICAL AND DENTAL TERMS AND CONDITIONS • Defines ‘Regular’ and ‘Standard User’ • Payment based on size of engine • Deals with changes to employment arrangements (change of base etc) • 19 different rates including Cars, M/Cycles, Cycles and Public Transport Rate
HMRC AMAP • Level of reimbursement that is considered ‘tax free’ • 40p a mile for the first 10,000 miles and 25p a mile thereafter • Payments above these levels are subject to tax - Payments below are available for ‘tax relief’ • UK Government have confirmed that they believe that this level is a correct reimbursement
FUEL PRICES • October 1 2004 fuel price was 89.6p • Most ‘visible’ element of the cost of motoring for an individual • Increase in fuel does not have the same increase in the ‘cost of motoring’
Fairness: allowances should reflect the cost of using vehicles for work and should be ‘felt fair’ by car users Simplicity: easy to administer Transparency: all staff and managers should be clear how rates are calculated and what the entitlements are A Partnership System: under the NHS Staff Council for regular review of allowances based on agreed measure MILEAGE PAYMENTS WORKING GROUP
DATA COLLECTION • Working group looked at a number of Trusts in England through ESR • 1600cc most common engine size • 75% Standard Users and 25% Regular User
CONSULTATION • Sharing with the service where the working group has got to • Seeking the view of the service (in Partnership) on possible options • Checking local experience against ESR Data Collected • Seeking views on transition arrangements / protection if applicable • Seeking ‘new’ thoughts on other possible options • Not a consultation on a new agreement!
WHAT DO YOU THINK? • A single mileage rate for business miles travelled irrespective of engine size? • A single rate but retaining a ‘lump sum’? • Is there still a need to retain a Public Transport rate? • Is your Trust/Board mileage picture similar to what we have got from ESR • Do you have other ideas?
RESPONSES • Information www.nhsemployers.org/mileage • In partnership: unions and employers • Complete questionnaire and return by April 24