Why have relocation expenses moved to trusts?
As discussed at several forums, the London and KSS current model for relocation expenses needed to change for the reasons captured below.
The principal change is that Trusts have taken on the administration and processing of relocation claims, consolidating payments under a single payroll.
KSS trusts took back this responsibility in April 2018 to align to the new tax year. The process has therefore changed for all trusts in KSS from April 2018 moving approval and payment of relocation claims to Trusts with reimbursement from HEE upon receipt of monthly returns through the LDA.
Relocation Eligibilities for London trusts will no longer be processed by HET from 1st July 2018. From that date, eligibility and claim processing will be the responsibility of employing trusts.
In reviewing the numbers per trust the impact at an individual trust level is limited.
Reasons for this change:
- Payment via HEE causes tax issues for trainees – having two payroll providers resulting in complex taxation situations; resulting in lack of transparency, concern and additional work for trainees, unravelling their tax position.
- Align nationally – by moving approvals and payment to Trust will be aligning nationally and simplifying process for trainees moving between regions.
- Quicker reimbursement for trainees – current process can be slow for trainees to be reimbursed due to volume of queries across the region.
- Reduce trainee queries for Trusts with greater clarity for trainees.
To help aid the transition, and future support for trainees and trusts HEE will be providing to Trusts:
- A template and timeline for trusts to submit to HEE to claim reimbursement for relocation expenses
- Query support from April 2018
- A template eligibility and approval form for use by trusts.
Some facts and figures and examples of numbers of queries per Trust:
Small Trust – 1 per month
Medium Trust – 3-4 per month
Large Trust – 7 per month
On average two thirds of claims are for excess travel with one third for relocation, removals & continuing commitments.