POA Circulars

62 | 07.06.2012

PSA Project: Changes to the way tax is deducted on taxable travel & accommodation

As you know, over the last two years HMRC have advised MoJ Taxation that NOMS must make certain changes.  Before April 2012 NOMS settled the tax on taxable travel, accommodation and subsistence separately from payroll. However, HMRC indicated that in future where travel, accommodation and subsistence are taxable, NOMS must tax the value of the benefits received through payroll.

As a result, NOMS introduced the necessary changes as part of the “PSA Project”, following consultation with unions.  The new arrangements went live in April 2012 to ensure that if your travel, subsistence or accommodation are taxable, the tax will be deducted through payroll. Where appropriate NOMS will “gross up” for tax and NI so that NOMS pays the additional tax and NI, not the member.

We appreciate that members will hold different opinions as to what is a benefit or in fact an entitlement. However, HMRC have set out the rules and clear guidance to all Government agencies and NOMS is required to comply.

  • It is now vital that members claim any travel and subsistence correctly when they use Oracle 1-expenses.  If members are unsure that they are claiming correctly on i-expenses they can check by looking at the guidance booklet on My Services called “Claiming Correctly for Posting Terms”.  This tells them how to claim on short term detached duty, long term detached duty and a number of other posting terms. Further guidance booklets are available on My Services.
  • It is also vital that members provide accurate information when using the NOMS booking tool for travel and accommodation. All NOMS staff will now see drop down boxes asking for their staff number, whether they are on certain posting terms and whether they are travelling in conjunction with their posting term. It is in members’ interests to enter all the required information correctly so that NOMS can gross up for tax where appropriate, and the member of staff does not accrue an unnecessary tax liability.

Please note that the payslips issued at the end of May may show the tax element of travel/accommodation/subsistence received in April.


The Government has set up a contract with Redfern travel to provide government departments with travel and accommodation services.

Please encourage members to read NTS 25/2012 and NTS 27/2012.

NTS indicates that staff may no longer book make group bookings or book on behalf of each other. This is designed to ensure that staff cannot be taxed for another person’s journey

NTS 27/2012 provides staff with information about the new travel and accommodation contractor.

Please draw the contents of this circular to all members and ensure they are aware of the changes to all policies when claiming travel and allowances.

Thanking you in anticipation of your support.

Yours sincerely


General Secretary