Questions relating to note on page 77 of the Bank's Annual Report about taxable expenses

We publish details of a selection of requests made under the Freedom of Information Act 2000, and the information we disclose in response.

Subject/Request Details: The note states that ‘certain taxable expenses had been classified as business expenses, and therefore not disclosed in the Remuneration table. This has required restatement of prior year Non-executive Directors expenses from £15,458 to £31,967, which are stated gross of relevant tax liabilities
 
Request for information showing what these taxable expenses were for and what “business expenses” they were originally incorrectly classified as; which Non-executive Directors were involved.

Date released: 28 July 2015

Disclosure: 

The taxable expenses referred to in the footnote were travel and accommodation expenses incurred by Non-executive Directors in order to attend meetings at the Bank.  The reimbursement of such expenses is in accordance with the Bank’s expenses policy relating to Non-executive Directors, some of whom travel a considerable distance to perform their role.  There was a classification error in the previous annual report, identified during an internal tax review in late 2014:  some costs had been treated as qualifying business travel, whereas under current HMRC guidelines they should have been treated as a taxable benefit.  This was corrected and included within the remuneration report as taxable benefits in the prior year, grossed up for the tax payable.
 
The figure of £15,458 disclosed in last year’s annual report reflected travel expenses (grossed up for tax) to and from the Bank.  The review in late 2014 showed that an adjustment to the gross value was required.
 
The table below provides a breakdown per individual:

Year ended 28 February 2014 £ 

Taxable expenses incurred 

 Total including gross-up for tax

Gross taxable benefits disclosed in 2014 annual report 

Difference

 Sir David Lees  7,499 13,634 15,458 (1,824)
 Lady Susan Rice  7,454 14,063  - 14,063
 Michael Cohrs  2,263 4,270   - 4,270 
   17,215 31,967  15,458  16,509

 

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