Frequently asked questions
Here are the answers to some of the questions the commission has been asked most often in recent weeks...
Do I have to pay tax on my home to office travel expenses?
You are liable to tax on these payments. However, there is a "special arrangement"
with the Inland Revenue under which your NHS trust, PCT or strategic health authority can meet this liability on your behalf.
This is similar to a PAYE settlement agreement (PSA) about which more information is available in the Inland Revenue's leaflet IR155. It is expected that the "special arrangement"
or a PSA will be implemented for all chairs and non-executives.
We hold a letter of agreement which we can make available if you need it.
Does a different mileage rate apply if I am training?
No. Training agreed by your organisation is part of your NHS business and you are entitled to expenses in the normal way. There is no provision in the order determining the expenses payable to chairs and non-executives for any mileage rates other than those set out below:
| Engine size | p per mile | Up to | Then p per mile |
|---|
| Up to 1500cc | 43p | 7,500 | 18.3p |
|---|
| Over 1500cc | 53p | 7,500 | 20.5p |
|---|
My PCT has dropped a band this year, why?
Last year, the Department of Health based the PCT bands on the HA unified budget allocation to the PCT in the absence of any other nationally consistent information on which PCTs, like NHS trusts, could be banded.
This year, as they have a set of accounts for all PCTs, the bandings have been based on this information, specifically the "gross operating costs"
. This has meant that some PCTs, particularly those which are managing shared services, have moved up a band and others have moved down.
However, the interests of chairs of PCTs that have moved down are protected so that there is no effect on their remuneration while they remain in post. The lower band is only implemented on the appointment of a new chair.
