In some cases you may wish to consider whether a locally agreed deduction is appropriate. This may be useful where:
Such a deduction will only be useful where processing individual
expense deductions would otherwise involve considerable
It is important to ensure consistency of treatment across the country, so that employees in similar circumstances receive similar treatment. You must carefully consider what knock-on effects your locally agreed deduction could have for other groups of employees in similar circumstances.
When you fix the amount of any deduction take into account existing nationally agreed amounts for broadly comparable occupations. (This text has been withheld because of exemptions in the Freedom of Information Act 2000)
When you reach a local agreement with an employer for flat rate expenses (FRE) or a fixed rate amount (EXP) that differs from the nationally agreed FRE you must record details of the agreed amounts on the EBS Employer Record in Employer Notes. Enter details in the 'Locally Agreed Expenses' field, using function Amend Employer Notes. It is important that the EBS Employer Notes are kept up to date, as Call Centre staff will refer to them when they deal with FRE requests.
For 2008/09 onwards, EIM32726 gives further guidance regarding the amount of the allowance that you should give.
If an existing flat rate expenses deduction is later reviewed
and increased, the new figure will only apply for the current and
future years. The new FRE should not be applied retrospectively, or
“scaled back” for in date years. That is because
employees who spent more than the previous FRE always had the
option to obtain relief based on their actual, vouched expenses
The “no retrospection” rule may be relaxed in cases where a flat rate expenses allowance is agreed for the first time for a particular group of employees. Offices may then have to deal with requests for expenses for earlier years by employees in that group who have previously had no relief at all. Receipts will rarely be available, though it is clear that some expenses must have been incurred – otherwise, it would not have been possible to agree an FRE deduction for the future. In such a case, it makes administrative sense to use the newly agreed FRE as a starting point in negotiating the relief due for earlier years.