Overview
This policy is part of Our Code, against which we are all required to attest annually.
Why do we need this policy?
This policy sets out the Bank’s principles and requirements for claiming travel and related expenses incurred on Bank business, including the use of corporate credit cards.
It does so in a fair and transparent way, so that anyone needing to incur expense can understand which claims are permitted and what steps must be taken to ensure reimbursement.
Summaries of the expenses of Governors, Executive Directors, Non-Executive Directors of Court, and External Members of the Financial Policy Committee (FPC), Monetary Policy Committee (MPC) and Prudential Regulation Committee (PRC), are published quarterly with a three-month lag.
Who does this policy apply to?
This policy applies to all of us: Governors, Non-Executive Directors, external members of the FPC, MPC, and PRC, and all colleagues (including contractors, consultants and agency, whether or not reimbursed through the expenses system).
What you must know or do?
Key principles
We follow two key principles in this policy: the ‘value-for-money principle’ and the ‘integrity principle’.
The value-for-money principle
The Bank is a public body, accountable to Parliament and the public.
We use the Bank’s resources responsibly to achieve the Bank’s work and mission, ensuring value for money, having regard to:
- efficiency and cost-effectiveness;
- wellbeing;
- environmental impact; and
- safety and security.
The integrity principle
Our Code explains the integrity principle – one of the Nolan principles of public life. This includes that we should not be influenced by the prospect of personal advantage or gain. We must use the Bank’s resources responsibly for the public good, not to profit personally.
Travel and expense claims should only reflect costs that are additional to normal daily expenditure.
Integrity is fundamental. Checks are carried out and claims will be scrutinised; but it is your responsibility to act with honesty and integrity in the application of this policy.
General expectations and requirements
We expect you to:
- follow the value for money and integrity principle;
- work within the letter and spirit of this policy. The policy cannot cover every eventuality. If you are not sure whether travel or an expense is allowed under this policy, we expect you to ask before incurring the expense;
- follow the procedures; otherwise reimbursement may be delayed or refused; and
- take care when entering or checking information in the expenses system.
Following these steps helps ensure that the Bank can act promptly to reimburse valid claims made in accordance with this policy.
If you have specific travel requirements, such as specific dietary needs or requiring accommodation within reach of religious facilities, and it is not possible to accommodate those within the Policy limits then the Bank will cover reasonable additional costs. Before travelling you should discuss these with your manager to agree what additional costs will be covered.
If you realise that you have made a mistake in submitting a claim, we expect you to raise it with your manager and report it immediately so that errors can be redressed. Our Code makes clear that we have nothing to fear from an isolated honest mistake, and credit is given for prompt reporting (this demonstrates acting with integrity).
Other breaches of this policy may result in more serious consequences, including disciplinary proceedings. In particular, dishonest breaches of this policy are a very serious matter, and may be considered gross misconduct.
Travel: general provisions
Safety and security
Safety and security are always important and particularly so when travelling. These are relevant considerations when taking travel decisions, such as the location of a hotel or a mode of transport. This policy reflects this, allowing a judgement to be made based on the circumstances. If in doubt, you should take the safer alternative.
Wellbeing is also important. Travelling long distances and being away from family and friends has a cost. The Bank wants staff to be able to perform at their best when travelling for work. The requirements reflect this.
Information security risks are often present during travel, and may also be a relevant factor.
Travel and the environment
Travel and face to face meetings can be an important tool to the Bank in meeting its objectives. But, they also have an impact on the Bank’s climate objectives and need to be balanced against this and other considerations.
One of the Bank’s key strategic priorities is to respond to the challenges of climate change. The Bank has committed to an ambitious targetfootnote [1] to reduce greenhouse gas emissions to net zero by 2040, consistent with the goals of the Paris agreement and limiting global temperature rises below 1.5°C.
Air travel represents a key component of the Bank’s operational carbon footprint, and a large proportion of the emissions the Bank can meaningfully influence in the short to medium term. The greatest reductions to carbon emissions can be achieved by reducing the number and class of long-haul international flights.
Chart 1: Carbon emissions per 100 miles (Kilos C02e) (a)
Footnotes
To help reduce the environmental impact of our travel, you should join meetings remotely wherever possible.
Where travel is required, you should choose the lower emissions option where practical, and where any additional cost, time commitment or impact on wellbeing is not disproportionate. For example, you should take public transport instead of taxis, where it is safe and practical to do so.
Where you have influence over the arrangements, you should consider whether a physical meeting is necessary or whether your objectives can be achieved with a remote meeting. In particular you should weigh carefully whether or not the benefits of meeting physically, such as the development of intra-institutional and bilateral relationships, outweigh the environmental impact and advocate accordingly.
Where the majority of people are attending in person, it is likely that Bank staff may need to do the same, to participate and influence the meeting effectively.
Where more than one staff member is travelling as part of a group to attend the same event, the most senior staff member travelling must approve each accompanying colleague and ensure that costs and emissions are minimised.
Combining business and personal travel
Bank resources are in no way to be used to fund personal travel.
You may extend a business trip to accommodate personal travel, but only if the personal travel is entirely incidental to the business trip.
In these circumstances, you must meet all additional costs relating to the ‘personal’ element of the trip. This includes the difference in costs if the actual arrangements (such as flights) are more expensive than the arrangements that would have been appropriate based on the business aspect of the trip. You may not use any cost savings to contribute towards personal travel if your actual travel arrangements are cheaper than those that would have been appropriate based on the business aspect of the trip (this includes if you downgrade tickets).
Travel Insurance
The Bank's travel insurance covers all business travel outside the UK and business travel within the UK, if a flight or overnight accommodation is included.
For all colleagues
1. All flights, UK and European rail travel (including Eurostar), and accommodation must be booked through the Bank’s travel provider, unless it is necessary to arrange a flight when the Bank’s travel system is unavailable (eg out of hours).
You should use the online tool for simple journeys or contact the central helpdesk for multi-stop or complex journeys.
Booking through the Bank’s travel provider allows the Bank to access preferential rates and contractual terms, reduces the administrative burden for bookers and travellers, and ensures the Travel Security Unit are aware of itineraries.
2. When claiming expenses you must:
2.1. ensure any travel arrangements and expense claims comply with the relevant limits, and the conditions and requirements specified in this policy, relevant to the expense type being claimed;
2.2. provide a clear, justifiable business rationale for expenditure and if not sure check with your approver;
2.3. attach receipts (except where not necessary under this policy);
2.4. submit out-of-pocket expense claims within 90 days of the expense being incurred; and
2.5. reconcile any corporate credit card expenses within 30 days of the expense being incurred.
3. Expense claims are subject to approval by an ‘approver’. You must select an approver in the expense system who is of a more senior scale than you (and minimum Head of Division).
3.1. Where corporate cardholders pay for a colleague’s expenses (and then allocate the cost to that colleague in the expense system), the approver must be a more senior scale than both the cardholder and the colleague that the expense was for.
For approvers (HoDs or above) and approver delegates
If you are an approver, you may delegate approval tasks, so long as the approver-delegate is familiar with this policy and the expenses system, but you remain accountable for the decisions taken.
4. Before approving your first expense claim you are required to attend Finance training and sign an Approver Confirmation form.
5. If you are an approver or an approver-delegate, before approving an expense item, you must ensure promptly that it:
5.1. complies with this policy;
5.2. has a clear and justified business rationale; and
5.3. is accurately coded and fully receipted (except where the policy says a receipt is not necessary).
Policy limits and conditions
1: Air, rail and other public transport (overseas and domestic)
Please review the Travel and Environment section before booking.
Book tickets as early as possible, as reduced advance fares may be available.
When choosing the class of travel, you should always seek to secure value for money while recognising the requirements relating to information security (for example where there is a need to work on sensitive matters when travelling) and disability or accessibility needs.
Upgrades
You must not seek a free upgrade to a higher class of travel, but may accept one if offered. You may upgrade if you personally pay the difference in price between the class specified under this policy and the one booked.
Departure lounges
You may use a departure lounge (air or rail) when travelling on Bank business if its use complies with an allowable condition below, or if you personally pay for its use.
- It is included in the cost of the ticket.
- It is required to accommodate disability or accessibility needs (and no other facilities are available that would meet this need).
- Its use is justified for information security reasons (eg travel by the Bank’s Governors or Policy Committee members will use the lounge whilst working on sensitive matters).
- It is provided to you as a member of a frequent flyer scheme or other personal membership.
Compensation
You should not accept financial compensation for disrupted journeys. This means:
- You should not volunteer for denied-boarding compensation or seek to benefit personally from financial compensation awarded for delayed or cancelled journeys.
- You may accept vouchers or other arrangements for refreshments, meals and accommodation during a disrupted journey.
1.1: Air
Where you are unable to choose the cheapest flight you must confirm the reason.
For long flights (6 hours +) where travel is overnight or where you are starting work immediately after the journey, flights may be booked as business class, though you should also consider whether it is possible to travel at a different time to reduce costs of travel.
The appropriate class of flight should be considered separately for the outbound and inbound legs of a journey.
Table A: Permitted flight class with conditions
Duration | Class | Conditions |
|---|---|---|
Under 6 hours | Economy | Unconditional |
Business |
| |
6 hours + | Premium Economy | Unconditional |
Business |
| |
10 hours + | Business | Unconditional |
The Bank will not reimburse First Class flights, except where an airline only has two classes and describes Business as ‘First’, (eg internal flights in the US). | ||
Air-miles
You may accrue promotional benefits (such as air-miles or frequent flyer benefits) for your own personal use; however the availability of such benefits must not influence your choice of airline or flight.
You must declare when booking if you will receive air-miles.
1.2: Rail (including Eurostar)
Table B: Permitted rail class with conditions
Class | Conditions |
|---|---|
Standard Class | Any |
First Class or equivalent |
|
1.3: Other public transport
When claiming reimbursement for the use of public transport, you must provide a business rationale.
You should only claim for aspects which do not overlap with your usual commute to work.
For out-of-pocket journeys, you must attach a breakdown of the journeys when allocating expenses to specific expense codes. You are encouraged to amalgamate journeys into monthly claims to minimise the administrative burden.
When using your corporate credit card for journeys, there is no requirement to attach a breakdown, as the expense details will be fed automatically into the system.
Oyster cards
If you pay for journeys on Bank business using your personal Oyster card, you may claim reimbursement. You will need to provide details of the journeys claimed, but not receipts.
In no circumstances will the Bank reimburse up-front top-up of Oyster cards.
You may use your contactless corporate credit card to pay for business journeys on public transport.
2: Hotels
You should select hotels with adequate security and facilities, chosen in accordance with the value-for-money principle.
Hotels should only be booked where the traveller cannot reasonably be expected to make a return journey to and from a meeting or other business related event in the same day.
Where you need to stay in a particular hotel for security or business reasons (eg it is the venue of an official meeting, conference or event), then you should book that hotel.
Where you have flexibility in your choice of hotel, the rate limits below apply unless there are no suitable and secure hotels available within a reasonable distance of the destination.
Table C: Hotel nightly rate limits
Region | Nightly rate limits (including breakfast) | Region | Nightly rate limits (including breakfast) | |
|---|---|---|---|---|
UK | GBP 150 | London – EC Postcodes | GBP 270 | |
Europe* | EUR 240 | Rest of London | GBP 240 | |
Switzerland | CHF 330 | New York | USD 390 | |
North America* | USD 330 | Washington | USD 390 | |
Rest of the world* | GBP 225 | Tokyo | JPY 45,000 | |
Hong Kong | HKD 2,640 |
Footnotes
- * For countries with other currencies, please apply the appropriate conversion rate.
Settling hotel bills
Your hotel bill should be settled on departure.
You may personally settle the bill and claim via the out-of-pocket expenses process (eg if you are an infrequent traveller and without a corporate credit card).
You can also use a colleague’s corporate credit card to make a reservation. If you are not travelling with the card holder, however, you should request and complete an advance third party credit card form with the hotel at the time of booking.
Hotel membership cards
You may personally accrue promotional benefits such as hotel membership cards; however the availability of such benefits must not influence your travel plans or choice of hotel.
Taxable
Hotel accommodation not associated with business travel or staff training (eg emergency accommodation provided due to adverse weather conditions) is taxable, and the liability will be met by the Bank.
Where claimed it will form part of the Bank’s year-end PAYE Settlement Agreement tax submission to HMRC.
3: Incidental expenses
You can claim reasonable incidental expenses, incurred while travelling on Bank business, to a total overall maximum of:
- UK – up to £5 per 24-hour period
- Overseas – up to £10 per 24-hour period
This is not an automatic allowance: only seek reimbursement for costs incurred that are additional to normal daily expenditure.
When making the claim, receipts should be attached, where available.
Examples of reasonable incidental expenses include:
- costs of calls to family;
- laundry costs; and
- internet usage or wifi on personal devices.
Taxable
In exceptional circumstances where employees may need to exceed the above limits, then tax and national insurance is payable (by the Bank) on the full amount and will be included in the Bank’s year-end PAYE Settlement Agreement tax submission to HMRC.
4: Meals and subsistence
Meal and subsistence expenses can be claimed on UK and foreign travel.
Meals while away overnight
You may claim up to £50 per day for the cost of meals while on an overnight stay on Bank business including when staying with friends or family. This includes the cost of reasonable alcoholic drinks, tax and gratuities.
In addition, where breakfast is not included in the cost of the hotel, the Bank will either reimburse the cost of breakfast at the hotel, or you can also claim up to £12.50 for breakfast elsewhere.
Meals where there is no overnight stay involved
If you travel on Bank business outside usual work and commuting hours, in circumstances where a hotel stay would be considered reasonable, you can claim food and drink expenses up to £25.
Out-of-hours meals on Bank premises
You can claim for out-of-hours meals on evenings and weekends up to £15 if you have worked:
- Monday – Friday (and Saturday – Sunday where part of your normal contractual working days): for at least 11 hours within a single day, and until at least 8.15pm on Bank premises.
- Saturday – Sunday (when not part of your normal contractual working days): for at least four hours within a single day on Bank premises.
The meal must be for personal consumption on Bank premises and can be purchased from any vendor. You must ensure you have a receipt for all items purchased.
Taxable
Out-of-hours meals reimbursed by the Bank are taxable and the liability will be met by the Bank. Where claimed, they will form part of the Bank’s year-end PAYE settlement agreement tax submission to HMRC.
5: Official business hospitality
Official business hospitality provided by the Bank
When meeting external non-Bank contacts for official business, including while travelling on business, you may claim incidental hospitality expenses. However, this will generally be the exception rather than the rule; in most cases, the provision of hospitality will not be necessary to achieve the Bank’s mission.
Any hospitality should be reasonable, not lavish and you should be mindful of the use of public funds and follow the value for money principle. Where an official hospitality event exceeds £500 ED approval must be obtained in advance. EDs may delegate approval to HoDs/COO Manager responsible for managing the local budget. For lunchtime meetings, use of in-house catering is encouraged.
The number of Bank employees should typically not exceed the number of external guests.
Official business hospitality received by the Bank (entertainment and gifts)
If you are offered hospitality (entertainment or gifts) while on official business, the Bank’s Entertainment and Gifts requirements in Our Code apply.
6: Taxis and car hire
Where safe and practical, you should use public transport for travelling on Bank business, in preference to taxis or car hire.
Booking taxis
Taxis in the UK can be booked using the Bank’s online travel provider system, and charged to a corporate credit card. You can also book taxis directly through other providers.
If you do not have a corporate credit card, you can either ask a colleague with a card to make the booking or pay for the taxi personally and claim via the out-of-pocket expense process.
Unless booked via the online system you will need to obtain a receipt. Please obtain a printed receipt or statement, where possible. The full reason for the use of a taxi must be stated on the expense claim form. Claims may include the cost of a reasonable tip.
Taxis and car hire UK and overseas
The Bank will reimburse taxi and car hire expenses for journeys taken while on Bank business in the UK, including to or from UK airports, where:
- public transport is unavailable or impractical (including where not time or cost effective);
- to accommodate disability or accessibility needs; and
- using public transport could raise safety or security concerns.
The Bank will reimburse taxi and car hire expenses for journeys taken on Bank business while overseas.
Taxis in place of your usual commute to work
The Bank will also reimburse for taxi journeys to and from your home in the following circumstances:
- where you are required to attend work, and public transport is not available (eg due to industrial action);
- to accommodate a disability;
- where you are required to work earlier than 5.30am or later than 9pm; you should not adapt your working pattern to profit from this rule.
Taxable
Journeys between home and work are taxable and the liability will be met by the Bank. Where claimed, they will form part of the Bank’s year-end PAYE Settlement Agreement tax submission to HMRC if:
- a taxi is taken from your home to your usual place of work at any time (unless this is to accommodate a long-term disability);
- a taxi is taken from the employee’s usual place of work to their home after 5.30am or before 9pm; and
- more than 60 journeys a year are taken, or shift patterns apply.
To ensure accurate reporting of taxable benefits, expense claims must include the reason for travel.
7: Mileage
General requirements
‘Mileage’ is a payment to cover the use of a personal vehicle for business purposes (the Bank will not reimburse costs incurred as a passenger in a personal vehicle).
If you intend to drive your personal motor vehicle for business purposes, you must:
- notify the vehicle insurance provider that the vehicle is being used for business purposes and ensure that appropriate cover is in place; and
- complete the Drivers Licence Declaration Form (declaration valid for 12 months)
You may claim for business travel mileage if public transport is unavailable or impractical (including not efficient or cost effective) or to accommodate disability or accessibility needs.
Mileage and other vehicle costs cannot be claimed for travel between home and your usual place of work, unless you are required to attend work and public transport is not available (eg due to a Bank Holiday or industrial action).
The Bank will reimburse mileage claims at the following rates:
Table D: Mileage allowances by vehicle type
Motor cars | Motorcycles | Bicycle |
|---|---|---|
45 pence per mile | 24 pence per mile | 20 pence per mile |
Taxable
Receipts are not required when claiming mileage. You will need to provide postcode details of the start and end points of journeys.
Tax and National Insurance is payable (by the Bank) and will form part of the Bank’s year-end PAYE Settlement Agreement tax submission to HMRC:
- for journeys to and from employee’s home to their usual place of work;
- where shift patterns apply, or an employee takes more than 60 journeys a year between home and work.
To ensure accurate reporting of taxable benefits, expense claims must include the reason for travel.
Use of Bank provided lease cars
The Bank will reimburse fuel costs for business journeys taken in lease cars. Receipts must be attached in the expenses system.
Other vehicle costs
In addition to mileage the following related costs may be claimed, where incurred due to business needs:
- road and bridge toll costs;
- congestion charges; and
- parking.
Parking fines, speeding fines, clamping fees, and maintenance costs are not reimbursable.
8: Other expenses
Travel visas
You may claim for travel visas (eg ESTA applications) incurred on behalf of Bank business.
Passports
You may only claim for passport related costs in the following circumstances:
- passport renewal costs: if you are renewing your passport because the pages are full due to business travel; and
- fast track passport charges: when required urgently for business travel.
Currency
Where possible, you should use a corporate credit card for all business transactions incurred while travelling on behalf of the Bank.
Where small amounts of currency are required for gratuities or taxis, then currency can be withdrawn using your corporate credit card or obtained personally by the traveller.
Corporate credit card withdrawals
All currency spent must be allocated to the individual business category (eg taxis, meals) and not currency charges. For unspent currency, you can either:
- retain the money and allocate this amount of the transaction to personal spend – funds are then taken from the cardholder’s salary in the following month; and
- if withdrawn via a foreign exchange provider, any unspent currency can be returned and allocated back to the same credit card.
It is important when returning funds to the foreign exchange provider that the unspent debit amount and returned credit transaction are allocated to personal spend at the same time, so that they offset to zero; this will ensure funds are not taken from the cardholder’s salary.
Any foreign exchange transaction fees incurred can be allocated to currency charges, ensuring you are not out of pocket.
Out-of-pocket withdrawals
The expenses system allows expenses incurred in a foreign currency to be paid in sterling via payroll at the relevant exchange rate, which the system will calculate.
Therefore, if you are travelling abroad on Bank business, you may incur out-of-pocket expenses under this policy with foreign currency you obtain yourself, and claim for repayment in sterling via the out-of-pocket process.
All such claims must be allocated to the individual business category (eg taxis, meals) and not currency charges.
If you incur foreign exchange transaction fees in relation to currency for out-of-pocket expenses, you may claim these by allocating them to ‘currency charges’.
Miscellaneous expenses
The Bank will pay for other travel-related expenses only where there is a genuine business need. Receipts and supporting evidence for all such claims must be provided.
9: Corporate credit cards
The Bank can provide a corporate credit card to HoDs and above who travel and incur business expenditure on a regular basis. Below HoD level, ED approval is required. If you need a corporate credit card, contact your local central support team (COO) for assistance.
All requests require a business justification.
The key requirements are:
- the card is issued to you personally, you must not share the card or details inappropriately;
- the card is for business use – you may use the card to pay for your own expenses under this policy or the expenses of colleagues who do not have a corporate card. If you pay for a colleague’s expenses you must allocate the expense to that colleague within the expense system, and ensure that your approver is of a more senior scale than both you and that colleague (and minimum Head of Division);
- you may only use the card for personal expenses in an emergency, or when retaining currency; and
- you are personally liable for personal expenses incurred and any expenses which are not approved (ie which are not valid claims under this policy).
Any personal spend on your card allocated within the system will be reclaimed by the Bank through the monthly payroll process.