Tax and Funding

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Tax and Funding Workshops
2
Tax and Funding Workshops
up next Stephen Potter (Open University)
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Tax and Travel Plans

• Stephen Potter
• Professor of Transport Strategy
• s.potter_at_open.ac.uk

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Transport and Tax

• Unless a specificexemption is made, employer
  support to staff for commuting is treated as
  taxable income in kind
• NOTE for non-employees - students, customers or
  visitors, Travel Plan benefits are not taxable
• For business travel, payments are tax exempt
  unless limits are passed or a private benefit
  provided

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Commuting support and Travel Plans

• Until 1999, employer-provided car parking was
  the only major exemption (worth at least 500
  per annum)
• From 1999 many Travel Plan measures have become
  exempt from Income Tax and National Insurance
  Contributions (NICs)
• Tax is on marginal cost to employer (so bulk or
  negotiated discounts are tax free)
• Small benefits usually treated as trivial (e.g.
  prize draws for car sharers etc.)

Edinburgh Royal Infirmary
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Loans and Salary Sacrifice Schemes

• Interest-free loans to buy season tickets, a
  bicycle or anything legal
• up to 5,000 in any tax year.
• Salary Sacrifice can be used to purchase
  anything subject to a tax concession. Mainly
  used for bicycles (also bus tickets/passes)
• The employee agrees a cut (sacrifice) in their
  pre-tax salary made up for by a benefit by their
  employer.
• This effectively cuts the cost by at least a
  third
• Salary Sacrifice also used for pensions,
  childcare, healthcare etc. HR departments are
  getting keen on this method saves employers
  NICs too.

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Works Buses

• Employer-provided works buseswith 9 seats used
  for commuting
• Occasional use for other trips (e.g. lunchtime
  shop runs) is OK

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? Public Bus Services

• The benefit to employees of employers paying
  operators to improve public bus services to
  your site(s) are tax free.
• Contracts with bus operators can include
  discounted or free fares for staff.
• But other ways to subsidise tickets are still
  taxable (e.g. giving away tickets)
• So you must subsidise in the right way to be tax
  efficient
• Some bus salary sacrifice schemes are not
  strictly legal

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? Bicycle Exemptions

• The provision of Bicycles and Bicycle Safety
  Equipment (e.g. helmets and lights) has been
  exempt from tax since 1999.
• The provision of cyclists breakfasts are also
  exempt from tax
• Bicycle maintenance, rescue services etc. ARE
  liable to tax (but hopefully not for long)

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? Carshare Backup

• Alternative backup get-you-home transport for
  car sharers is tax-exempt (up to 60 trips a year)

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Taxable Travel Plan Incentives

• Payments to give up car parking rights
  (Cashout)
• Vanpools
• Any other cash incentives
• (prize draws seen as trivial)
• Subsidies to train, tram or Tube fares - or bus
  fares where there is no contract with the
  operator
• Flexible schemes (vouchers, points Green Miles)
  need to be carefully designed.
• They could be taxable on the whole package if
  they contain a mix of taxable and tax exempt
  measures

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Business Travel

• Some travel plans include business travel
• Mileage expenses for use of employees own
  vehicles, has a tax-free limit of
• 40p/mile car mileage rate
• Additional 5p a mile for car passengers
• 24p mile for motorcycles
• 20p a mile cycle mileage rate
• Few (20) employers encourage car sharing for
  business by paying a passenger rate

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Travel Substitution

• Provision of equipment to homework is tax free
  (even if there is incidental private use, because
  there is no additional cost to the employer
  associated with private use)
• Any cash payments to incentivise homeworking and
  teleconferencing liable to tax (unless a
  trivial prize draw etc)

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Overall...

• Tax is less of an issue for Travel Plans than it
  was a few years ago
• Some key areas remain in the tax net
• In some cases the tax position can be a bit hazy
  (Salary Sacrifice for bus fares is one)
• Be careful with mixing tax liable and tax free
  measures in a package
• There are opportunities to green business
  travel, which can be tax and cost effective, but
  are little used.

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Advice and Guidance

• Potter, Stephen (2008) Tax and Travel Plan
  Measures, National Business Travel Network
  Advisory Note 1 (download from
  http//www.nbtn.org.uk/NBTN_ADVISORY_NOTE_1.pdf
• HMRC Expenses and Benefits A Tax Guide.
  (download from http//www.hmrc.gov.uk/guidance/48
  0.pdf
• DfT Cycle to Work Implementation Guidance is
  downloadable from http//www.dft.gov.uk/pgr/susta
  inable/cycling/cycletoworkschemeimplementat5732
• Check with your local Inland Revenue Office

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Tax and Funding Workshops
up next Paul Curtis (LEPT)
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ACT Travelwise ConferenceThe EC Supporting
Sustainable Transport in Urban Environments
Paul Curtis 14th November 2008
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Overview

• LEPT
• European Commission
• Funding Programmes
• Budgets
• What actions they will fund
• Bidding Process
• Examples of EU sustainable transport projects

London European Partnership for
Transport www.lept-eu.org
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LEPT
Coordination
Preparation
Implementation
Dissemination

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20
Public Sector Structure

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Policy Funding set by Mayor of London
Steering Group Borough Officers
Management Committee Sub-regional
EC Funding Programmes

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Transport www.lept-eu.org
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European Commission

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European Commission

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Levels of Project Funding

• EU Budget 2007-13 800bn
• 4bn (2.85bn) for Transport
• 2.35bn (1.65bn) for Energy
• 1.89bn (1.35bn) for Environment

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Transport www.lept-eu.org
25
Funding Programmes - budgets

• Intelligent Energy Europe STEER- Energy (1.5m)
• INTERREG IVB - ERDF (5m)
• INTERREG IVC - ERDF (3m)
• LIFE - Environment (15m)
• FP7 - Sustainable Surface Transport - RD (4m)
• CIVITAS - Catalist - Transport RD (40k)

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Transport www.lept-eu.org
26
Funding Programmes

• Intelligent Energy Europe STEER Energy
• Alternative fuels and clean vehicles
• Raising awareness of availability
• Promoting procurement of clean vehicles fleets
• Energy Efficient Transport
• - Increase modal share of walking and cycling
• - Increase the take up of Travel Plans
• - Freight consolidation fuel-efficient fleets

London European Partnership for
Transport www.lept-eu.org
27
Funding Programmes

• INTERREG IVB - ERDF
• Tackle common problem in geographical region EG
• Increase take up of Mobility Management in urban
  areas by developing and piloting models to ease
  congestion
• business engagement
• multi sector partnerships
• alleviating bottle necks around major transport
  generators
• travel plans
• measurable outputs Co2

London European Partnership for
Transport www.lept-eu.org
28
Funding Programmes

• INTERREG IVC - ERDF
• Transfer of Best Practice to improve
  effectiveness of local policies Energy and
  sustainable transport.
• Travel Awareness
• Work and School Travel Plans
• Road Safety
• Clean Vehicles
• Policy and Integration

London European Partnership for
Transport www.lept-eu.org
29
Funding Programmes
LIFE - Environment Air To achieve levels of air
quality that reduce risks to human health and the
environment. Urban environment integrated
environment strategies for urban areas Noise To
contribute to policy development and
implementation on environmental
noise. Climate-friendly Policies and strategies

London European Partnership for
Transport www.lept-eu.org
30
Funding Programmes
FP7 - Sustainable Surface Transport - RD
Urban Freight delivery systems - Promote Green
procurement tenders for freight delivery -
Consolidation centres New Transport
Concepts Intermodality Behavioural change
analysis of approaches

London European Partnership for
Transport www.lept-eu.org
31
Funding Programmes

• CIVITAS - CATALIST - Transport RD
• Maximise impact of CIVITAS activities chose 1
  scheme
• Local authorities, PT operators
• Emphasis on local public private partnerships
• Political commitment essential

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Transport www.lept-eu.org
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Bidding Process

• Competitive Bidding Process
• Develop project concept
• Develop project consortium
• Call for proposals
• Consortium negotiations WPs budget
• Political sign off, submit
• EC Contract negotiations

London European Partnership for
Transport www.lept-eu.org
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Bidding Process

• Programme Requirements
• No. Partners
• CIVITAS 3-6 partners
• Interreg IVC up to 18 partners
• Type of partners
• Local government, NGOs, Research institutions,
  New Member States

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34
Method of Funding

• Some RD at 100
• IEE at 75
• INTERREG IVC at 75
• Most at 50
• Needs Match Funding
• Staff Time Eligible
• Staged Payments

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EU sustainable transport projects

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Transport www.lept-eu.org
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LEPT Projects

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Transport www.lept-eu.org
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ASTUTE - Walking Cycling
1. Safety Security Concerns 2. Lack of
Infrastructure Support 3. Poor Public
Perception Lack of Awareness 4. Inadequate
Urban Environment Design 5. Accessibility
Health Issues 6. Congestion and Air
Pollution 7. Lack of Public Sector
Support 8. Lack of Education Training
9. Lack of Private Sector Support 10.
Inadequate Information

London European Partnership for
Transport www.lept-eu.org
38
ASTUTE

• Travel Plan Bromley Council
• Improved facilities, information and publicity
• After 1 year (started in 2007)
• Increased walking from 9.5 to 12.5
• Increased cycling from 1.5 to 4
• Decreased car use from 69 to 61

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Transport www.lept-eu.org
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(No Transcript)
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COMMERCE - WTPs

• 6 EU Cities EPOMM
• European Platform on WTPs
• Local Travel Plan Fora
• Skill Share
• Pan - European Awards
• Pan - European Standards

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PIMMS TRANSFER

• 15 partners 7 NMS
• Mobility Management Study trips
• Master classes
• Pilot projects
• Carbon Trading personal / municipal
• International school challenges reduce car use
• Hotel Travel Plans

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Transport www.lept-eu.org
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CIVITAS

• Ploiesti (RO) CIVITAS SUCCESS
• Creation of first real cycling (8km) and walking
  CLEAR ZONE (4.3km) routes in Ploiesti
• Pedestrian consultation, planning
• Strategic plan for walking
• Improved accessibility of urban centre

London European Partnership for
Transport www.lept-eu.org
43
TAPESTRY project

• Research into effectiveness of Travel Awareness
  Campaigns Seven Stages of Change Model
• 1. Awareness of problem 2.
  Accepting responsibility
• 3. Perception of alternatives
  4. Evaluation of
  alternatives 5. Making a choice
• 6. Experimental behaviour
• 7. Habitual behaviour

London European Partnership for
Transport www.lept-eu.org
44
IEE STEER Trendy Travel

• Cork (EI)
• Emotional promotion of sustainable transport
  modes such as cycling and walking
• Student theatre on buses, cycling gear fashion
  shows, quizzes in shop windows

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Transport www.lept-eu.org
45
Upcoming conferences

• LEPT Annual Conference
  London 4 December 2008
  http//www.lept-eu.org/
• ASTUTE Final Conference
  London 5 December 2008
  http//www.astute-eu.org/

Paul Curtis www.lept-eu.org
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Tax and Funding Workshops
up next Paul Henderson (LEPT)
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ACT TravelWise Annual ConferenceBirmingham14th
November 2008
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Public Sector Structure
Local Project Delivery Regional Policy Regional
Local Funding EPOMM Membership Funding Streams
LA Consultation Regional and Devolved
Administrations DfT / NBTN HA / ACT TW COMMERCE

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COMMERCE

• 6 EU Cities EPOMM
• European Platform on WTPs
• Pan-European Awards
• Setting European standards for WTP
• PAS500 British specification on WTP
• See www.commerce-eu.org

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50
PAS500

• Project Managed by LEPT
• Sponsored by TfL
• Based on work by DfT NBTN
• Technical author Professor John Whitelegg
• Produced by British Standards Institution

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PAS500

• Specification, not Standard
• Can be advanced up the pyramid
• Full consensus needed for British Standard

Control
Consensus

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Transport www.lept-eu.org
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Why A PAS?

• Faster development process than a full consensus
  British Standard
• Capture and share knowledge across the industry
• Credible document as a result of BSIs
  independence in facilitating the process of
  consensus building with the stakeholders
• A PAS can be produced for product specifications,
  codes of practice, guidelines, vocabularies
• A document that provides a benchmark for
  assessment
• A PAS has the potential to be developed for
  promotion into the formal standards process at
  the national, EU or international level

London European Partnership for
Transport www.lept-eu.org
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BSI Process

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Steering Group

• ACT TravelWise
• ACT TravelWise Scotland
• Department for Transport (DfT)
• National Business Travel Network (NBTN)
• Highways Agency
• Transport for London (TfL)
• TravelWise Northern Ireland
• Welsh Assembly Government

London European Partnership for
Transport www.lept-eu.org
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Stakeholder Consultation

• Steering Group
• ACT TravelWise membership
• All LAs
• LTT Article
• ECOMM2008
• Various articles on websites
• IEMA, businessstandards.com, businessgreen.com,
  travelinedata.org.uk, planningresource.co.uk,
  parkingreview.co.uk

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Transport www.lept-eu.org
56
Scope

• PAS500 is for use of any organisation planning or
  developing WTPs and applies to all WTPs and all
  the situations in which WTPs are initiated,
  developed and implemented. This includes (but is
  not limited to) WTPs
• Initiated as part of an organisational policy to
  manage transport impacts for the benefit of
  staff, the environment, corporate social
  responsibility, the reduction of congestion, the
  better management of parking and to foster good
  relationships with neighbours
• Submitted with planning applications and/or
  transport assessments as part of the development
  control process
• Designed to reduce pollution from motor vehicles
  as part of an air quality strategy

London European Partnership for
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57
Scope

• This PAS applies to all the main components of
  transport generated by a particular site. These
  include
• Commuter trips made by staff
• Trips made by staff in undertaking their duties
  or otherwise in relation to their work
• Visitors to the site e.g. patients and visitors
  to hospitals, clinics and other NHS facilities,
  local residents visiting council offices,
  suppliers or customers making trips to businesses
• Contractors involved in carrying out projects at
  a particular site e.g. building and construction,
  2 Terms and definitions catering and cleaning
• Students travelling to university and college
  campuses and sites
• Trips made by all those carrying out work related
  tasks at premises covered by the travel plan
  (e.g. servicing plant and equipment, delivering
  supplies)
• Trips made by delivery vehicles of all types
  where the delivery is directly the result of
  demands made by the site to which the travel plan
  applies

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Transport www.lept-eu.org
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Scope
This PAS provides valuable requirements for
organisations of all sizes but would be of
particular use to workplaces or groups of
organisations with more than 100 employees

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Transport www.lept-eu.org
59
Scope

• PAS500 does not cover
• The design of attractive walking and cycling
  facilities
• Public or private bus, coach and train operations
• The design and operation of public transport
  services
• The detailed design and operation of car share
  and car club schemes
• Specific detailed measures or interventions that
  are likely to succeed in reducing car trips
• Setting specific targets, objectives or outcomes

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60
WTP Process (all)

• Senior management support
• Defining aims and objectives
• Measuring baseline travel behaviour
• Defining the targets to be achieved and the
  associated timescales
• Identify a range of interventions
• Implementation strategy and budgetary resources
• Periodic review

London European Partnership for
Transport www.lept-eu.org
61
WTP Process (DC)

• New sites will have to
• Establish preliminary modal split information
  (ref. best practice)
• Provide trip generation data
• Conduct a site audit
• Commit to reducing SOV use and increasing
  sustainable alternatives
• Identify a range of interventions
• Integrate targets and aspirations into the
  recruitment process

London European Partnership for
Transport www.lept-eu.org
62
Classification Grades - Bronze

• Must meet all above requirements and be publicly
  available (except commercially sensitive items)
  PLUS
• Have sufficient budget / resources allocated to
  achieve objectives
• Be based on a survey, undertaken analysed to
  identify travel behaviour of existing/proposed
  staff visitors
• Identify director/senior manager to have
  responsibility for travel plan strategy,
  implementation progress
• Include an implementation strategy giving clearly
  defined targets and milestones (min. 5 years)
• Include marketing communications strategy (min.
  five years)

London European Partnership for
Transport www.lept-eu.org
63
Classification Grades - Silver

• Must meet all above requirements and Bronze
  requirements PLUS
• Survey details (questions, results, process of
  analysis) including how results will be used to
  achieve travel plan objectives
• 1st year targets achieved OR
• Review targets with full documentation and
  reasoning
• Evidence of decreased SOV / increase in
  sustainable alternatives
• Response rate of min. 30 of employees for travel
  survey
• Evidence of communication of WTP measures /
  objectives to staff
• Evidence of training for staff implementing WTP

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Transport www.lept-eu.org
64
Classification Grades - Gold

• Must meet all above requirements, including
  Bronze and Silver standards PLUS
• Be operational for at least 5 years
• Survey undertaken and published at end of 5 years
• Survey acheives min. 50 response rate
• All targets must have been achieved, with
  supporting evidence
• Good practice displayed in WTP has been actively
  disseminated (presentations, articles etc)

London European Partnership for
Transport www.lept-eu.org
65
Supporting Information

• Appendices containing
• Glossary including components of effective TDM
  strategy
• Publications, government guidance and best
  practice
• Survey checklist
• Survey methodology including trip generation
  databases
• Sources of information and examples of target
  setting
• Classification grades matrix

London European Partnership for
Transport www.lept-eu.org
66
Accreditation

• Accreditation body needed to administrate and
  accredit
• applications
• Needs to be accredited by UKAS
• ACT TravelWise developing business case to do
  this
• Fee per application profits reinvested in
  network
• Established in early 2009 Launch at spring
  conference?

London European Partnership for
Transport www.lept-eu.org
67
Next Steps

• PAS500 published 21st November
• Publicity and Promotion of standard
• Engagement of Planning Authorities
• WTPs prepared to PAS500 specifications
• Accreditation body set up by Spring 2008

ANY QUESTIONS?

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Thank You
Paul Henderson Head of European
Projects paul.henderson_at_lept-eu.org

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69
Tax and Funding Workshops