NHS MILEAGE PAYMENTS

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• NHS MILEAGE PAYMENTS
• CONSULTATION 16 MARCH 24 APRIL 2009

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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

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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

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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)

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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

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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

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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

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MILEAGE PAYMENTS WORKING GROUP

• 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

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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

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SUMMARY STATISTICS ALL USERS
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SUMMARY STATISTICS STANDARD USERS
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Summary Statistics Regular User
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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!

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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?

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RESPONSES

• Information www.nhsemployers.org/mileage
• In partnership unions and employers
• Complete questionnaire and return by April 24