Underpayment of Expenses

DollFingers

Hi,

I'm hoping someone can help me. I work for an NHS Trust and have recently found out / had it confirmed that they've had me on the wrong travel expense rate for approximately 5 years. This is for mileage allowance as my work involves travelling to see patients. I've queried this several times over this period, and have emails from 2011 from when I first raised and challenged them over it.

Now they've acknowledged my rate was incorrect, in as much as they've now put me on the correct rate, they're saying they are not willing to pay me the money I believe I am owed. This comes to nearly £2,500 as I've been getting paid 50% of what I should've been receiving.

My plan is to see if they are willing to backdate my expense claims for the last few months. At most, I was told by the financial manager involved, they may be prepared to backdate for the last 12 months. They've said it was my Managers responsibility to ensure I was on the correct rate. As he also works for the NHS Trust, I see that as ultimately the Trusts responsibility and it being unfair that I am out of pocket.

I am not in a union and would be willing to seek legal advice. My understanding is that I can't take this matter to an employment tribunal. Does anyone have any advice on how to take this matter forward?

I really appreciate anyone taking the time to respond.

Thank you.

sangie595

Putting you on the "correct rate" (you say) does not prove that there has been an underpayment - it proves that you are now on a different rate! But if you say that this money is due, you must first attempt to resolve this through the normal procedures. If that does not resolve the issue then you may proceed with a claim to the county court.

ohreally

Were you claiming the wrong rate or was it taxed in error or some other issue?

adysam

if you were only been paid a certain amount per mile say 25p per mile, you can claim the difference by filling in a P11D form through HMRC, i am sure this can be back dated.

I did this a few years ago when the training company only paid 25p per mile, i claimed the other 20p through the P11D and got this back through my tax

I think you can also back date this a few years as well

k3lvc

adysam wrote: »

if you were only been paid a certain amount per mile say 25p per mile, you can claim the difference by filling in a P11D form through HMRC, i am sure this can be back dated.

I did this a few years ago when the training company only paid 25p per mile, i claimed the other 20p through the P11D and got this back through my tax

I think you can also back date this a few years as well

No no no - you can claim tax relief on the difference not the difference itself.


This is a useful tip to the OP which they should be doing anyway and may get them at least something back (at best 40%) but isn't going to help the actual discrepancy between what the OP's company said they would pay and what they actually paid

DollFingers

Hi, everyone, thank you for your replies. In answer to the points you've raised / questions asked, this will hopefully clarify.

I have been getting paid as someone who does over 3,500 miles a year, when in fact I've done less than that each year. This came about because when I joined the trust in December 2008 I was entitled to a lease car based on predicted mileage. I priced this up and wasn't able to afford it. Late in 2010 I realised that I was getting only 24p per mile, less than my colleagues, so I challenged this myself and through my Manager at the time. I was told that because I'd turned down a lease car, I'd agreed to be paid the 'Public Transport Rate' of 24p per mile – the rate given to people doing over 3,500 and/or those who decline a lease car. I asked to see where I'd signed to agree to this / where they'd expressly stated that would happen. They didn't answer that question. They were unmovable on this issue, despite my reasoning or that of my Manager.

Roll on the years and I've regularly raised the issue with my Manager / the relevant department and been given the same answer. Recently I overheard my Manager (not the one I initially challenged it with) telling a new member of the team that he'd get "58p per mile". This got my back up – again! I told my Manager (again) that it's grossly unfair that I am only getting (the now) 28p per mile. He claimed to not know about this and I asked him to look into it. It's through his phone call to the relevant department that I have now been moved onto the correct 'Standard Rate'.

My Manager and the department have been forward my emails gong back to 2010/11 where I first raised the issue. The Trust say they will only correct/issue back pay from when the issue was first raised with them. Initially they told me they'd only correct the rate from the day my manager made this recent phone call, but eventually, the Finance Manager said he may be able to backdate the previous year, but no more. I pointed out that I have tried to resolve this several times but have been assured I was on the correct rate, and with this in mind, who's responsibility is it to ensure the correct rate is being paid? I was told that it's the Managers responsibility. My manager said he doesn't know what rates people are paid / how many miles they do. He signs off our expense forms. I think it's worth noting that my form states the rate I should've been on (Standard Rate) as there isn't even an option for PTR. My manager would see this and resume it to be correct, yet the department ignores that and had been paying me PTR anyway. I queried this with them on the phone a couple of years back.

Anyway, all this happened approximately 2 weeks ago. I've contacted them for an update but have yet to get a reply. My manager is of the opinion I should receive full back payment, and said he would approve this if he's asked. I think that's unlikely to happen, which is why I am trying to find what other options I have to seek reimbursement.

I haven't looked at Tax Relief. The only dealings I had in this regard was when HMRC were mistakingly classing my milage allowance as a taxable expense/benefit.

Really appreciate any and all your advice!

ohreally

You need to sit your manager down and get him on side and being proactive in getting a resolution. It sounds as though you should have been getting the higher rate since day one (tax free).

Why payroll are paying PTR is an error and should have been addressed long ago, why are they persisting with this method?

DollFingers

ohreally wrote: »

You need to sit your manager down and get him on side and being proactive in getting a resolution. It sounds as though you should have been getting the higher rate since day one (tax free).

Why payroll are paying PTR is an error and should have been addressed long ago, why are they persisting with this method?

Thanks for your reply. I don't think they do pay that rate anymore, or at least, they don't call it that. Both my manager and I have struggled to get a straight answer from the department in question e.g. He was initially told that they'd changed the system a while ago, but now, they deny that the system has changed at all. I found details on 'Agenda for Change' changes, but my manager says they don't apply to our Trust. It's not very clear.

It may be that 2009 /2010 I was doing over 3,500 miles. I don't have records from that time and they've not forwarded me that information – though I requested it. I only have records from late 2011, around the time I went to part time hours, and I've worked out my annual milage from then and how much I was paid each month. All this information was emailed to the Financial Manager who's looking into it. It was at that point he advised me not to get my hopes up, that at best it would be 12 months backpay.

It's potentially problematic that my Manager is saying I'd never brought this to his attention before. I have, verbally, several times verbally over the last 4 years since he's been manager. I only raised it in writing / email with my previous team manager though. His advice at the moment is to see if I am paid the correct rate in this months pay (I submitted the past 3 months forms) and then push them on the backpay.

I don't feel I can rely on him to be proactive if they did their heels in and say no. I think he'll just say his hands are tied. There's two other people in the team who've had issues related to lease cars, and they've been unsuccessful in getting backpay beyond when my manger notified them. In their cases you're only talk a few months worth of underpayment.

Guest101

Agenda for change clearly states the mileage rate, the problem is, do you have all the records for the mileage you did and the rate at the time?

DollFingers

Thanks to everyone who commented / advised. The matter has just been resolved and I've received full back pay dating back to 2011. It's taken 9 months to do it but got there in the end!