Did you know that, as a Civil Service employee, you can get a range of allowances for roles requiring extensive travel?
If you are a civil servant whose role entails travelling anywhere up to 1, 500 miles weekly, understanding travel reimbursements and vehicle schemes is essential.
In this guide, we break down everything from mileage rates and lease options to expense claims and department specific policies.
Whether you are new to the Civil Service or looking to optimise your travel claims, this comprehensive guide helps you to navigate the system.
Table of Contents
Understanding Civil Service Vehicle Policies
What is a Civil Service car allowance
A Civil Service car allowance is a travel reimbursement system that compensates staff for using vehicles for work-related journeys.
For civil servants who travel frequently, understanding this system is crucial as it operates on a pay-and-reclaim basis. This means employees initially cover their travel costs and then submit claims for reimbursement.
Who is eligible for vehicle benefits
Vehicle benefits in the Civil Service are primarily determined by job role, travel requirements, and employment status, rather than grade or seniority.
Field-based roles that demand extensive travel typically receive the most comprehensive benefits.
For instance, employees traveling 1,000-1, 500 miles weekly, such as regional managers or field inspectors, often qualify for enhanced support including lease car options.
Department specific variations
Vehicle benefits in the Civil Service show significant variations between departments, largely based on operational needs, budgets, and historical practices.
While HMRC and DWP might offer comprehensive lease car schemes for staff meeting specific mileage requirements, other departments like Justice Digital focus primarily on mileage reimbursement for personal vehicle use.
The variations extend beyond just lease car availability.
Some departments have streamlined approval processes for travel claims, while others maintain stricter controls.
Subsistence rates, preferred rental car suppliers, and even the thresholds for mileage claims can differ.
For instance, Border Force staff dealing with remote locations have additional allowances that aren't available to urban-based civil servants.
Types of Vehicle Support Available
Mileage reimbursement rates
Civil Service mileage reimbursement operates on a simple principle but includes several important variations.
| Type of Travel | Rate per Mile | Additional Notes |
|---|---|---|
| Personal Car (First 10,000 miles) | 45p | Standard rate for approved business travel |
| Personal Car (After 10,000 miles) | 25p | Reduced rate after annual threshold |
| Lease Car | 12p | For Civil Service lease scheme vehicles |
| Additional Passenger | 5p | Per passenger, per mile |
| Motorcycle | 24p | Standard motorcycle rate |
| Bicycle | 20p | Promotes sustainable travel options |
* Rates may vary by department and specific circumstances
* TUPE'd employees may have different rates based on previous arrangements
What is TUPE?
TUPE (Transfer of Undertakings Protection of Employment) refers to regulations that protect employees' rights when their organisation transfers to a new employer. TUPE' d civil servants retain their original terms and conditions, including any existing car allowances, from their previous employment.
Civil Service lease car scheme
A Civil Service lease car scheme is a benefit available exclusively to permanent staff who undertake significant business travel, typically requiring 12,000+miles annually.
Unlike private sector car allowances, this scheme operates differently across departments. For instance, HMRC has an established programme while some departments offer no lease options at all.
Salary sacrifice is always an option as a lot of external companies offer a salary sacrifice programme.
When using a lease car, employees receive a lower mileage reimbursement rate of 12p per mile compared to the 45p rate for personal vehicles, reflecting that the Civil Service covers the lease costs.
The scheme may have tax implications as it can be treated as a Benefit in Kind (BIK), and while business mileage is reimbursed, employees typically cover their private mileage costs.
Eligibility and terms vary significantly between departments, making it essential to check specific departmental policies when considering this option.
Alternative transportation option.
Civil Service employees have various transport options for business travel. Each option comes with specific reimbursement rates and conditions, allowing flexibility based on journey requirements and personal circumstances.
| Transport Option | Rate/Benefit | Additional Information |
|---|---|---|
| Personal Vehicle | 45p per mile | First 10,000 miles, then 25p per mile |
| Additional Passengers | 5p per mile | Per passenger for work colleagues |
| Motorcycle | 24p per mile | Flat rate for all miles |
| Bicycle | 20p per mile | Supports sustainable travel options |
| Public Transport | Full cost | Ticket costs can be expense claimed |
| Rental Cars | Full cost | Available for specific journeys |
Making a Travel Claim
According to the Civil Service Management Code, staff can claim expenses incurred when carrying out departmental business but must follow their department's specific HR or finance manual guidelines.
Claimable expenses include rail travel, overseas and domestic flights, taxis and public transport costs, accommodation and subsistence costs (including hotel stays and meals), and other essential expenses incurred during official work.
For personal vehicle use, as discussed above the standard mileage rates apply (45p per mile for the first 10,000 miles, then 25p).
The claiming process requires proper documentation and receipts, with claims submitted through departmental finance systems.
All expenses must be for official work purposes and demonstrate efficient use of public resources. Claims are subject to audit by departmental Accounting Officers, who ensure compliance with financial guidelines, and the Comptroller and Auditor General who reports to Parliament on audit examinations.
For specific guidance on claim procedures, staff should consult their departmental Finance Teams.
To find out more, you can refer to the official guide on travel expenses claim procedure, on the gov.uk website.
Emergency travel procedure claim
You can claim reimbursement in emergency travel situations as a civil servant.
When facing public transport disruptions or unexpected circumstances requiring overnight stays, civil servants can claim necessary expenses including subsistence costs and accommodation, even if these are near their usual workplace.
All emergency travel claims must be submitted through departmental finance systems with complete documentation, including receipts and clear explanations of the emergency circumstances.
Standard mileage rates still apply during emergencies - 45p per mile for the first 10,000 miles when using personal vehicles.
For specific guidance on claim procedures and eligibility, staff should consult their departmental Finance Teams, as policies can vary significantly between departments.
Does Hybrid Working Impact Travel Expense?
Hybrid working arrangements have introduced new considerations for Civil Service travel expense claims, but the fundamental principle remains unchanged: Regular commuting costs to your designated workplace cannot be claimed, regardless of how frequently you attend the office.
This rule applies even if you're working from home most of the week and only visiting the office occasionally.
Civil servants can still claim expenses for legitimate business travel. This includes journeys between different office locations, visits to external stakeholders, or travel to locations other than your contracted workplace for official business purposes.
Tax Implementation and Documentation
The tax implications for Civil Service vehicle benefits primarily centre around two key areas: Lease cars and mileage claims.
When using a Civil Service lease car scheme, employees need to be aware that this benefit is treated as a Benefit in Kind (BIK) for tax purposes.
Under this arrangement, while business mileage is reimbursed at 12p per mile, employees are typically responsible for covering their private mileage costs, which has tax implications.
For personal vehicle use, the Civil Service provides a tax-compliant mileage reimbursement system with rates set at 45p per mile for the first 10,000 miles and 25p per mile thereafter, plus an additional passenger supplement of 5p per mile.
TUPE'd employees (those who have transferred from other organisations) may have different tax arrangements that carry over from their previous employment terms.
For specific guidance on tax implications and claims procedures, staff should consult their departmental Finance Teams, as tax arrangements can vary significantly between departments and individual circumstances.
Motorfinity and the Civil Services
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Whether you're looking for efficiency, style, or cutting-edge technology, our selection is designed to meet every need.
You can choose from Personal Contract Purchase (PCP), Hire Purchase (HP), and leasing deals. Each option provides flexibility and benefits tailored to different driving habits and budgetary needs.
Are you eligible?
Our nations Armed Forces, Veterans, Emergency Services, NHS, Police and Prison Services, the Education and Social Care sectors and more form our eligible audience.
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