Expenses Policy template
An expenses policy is the written rulebook for spending money on {{org.name}}'s behalf and getting it back — what can be claimed, the limits that apply, the evidence required, and how claims are submitted, approved, and paid. It replaces case-by-case haggling with one set of rules everyone can see.
Without one, expenses become a fairness problem and a finance problem at once: the confident over-claim, the conscientious under-claim, and month-end becomes an argument. A clear policy protects staff from being out of pocket and protects the business from creeping, unchecked spend.
This template covers claimable and non-claimable costs, mileage and subsistence limits, the claims procedure, approval and payment, and the checks that keep the system honest.
Full text, ready to adapt.
Highlighted fields are placeholders — replace them with your organisation's specifics. A starting point, not legal advice.
Expenses Policy
Policy · Company Policies
1. Purpose and scope
This policy sets out what {{org.name}} will reimburse, the limits and evidence required, and how to claim. It applies to all employees and, where agreed in writing, to contractors incurring costs on our behalf.
The principle throughout: we reimburse reasonable costs people genuinely incur doing their job. Nobody should profit from expenses, and nobody should be left out of pocket.
2. Policy statement
{{org.name}} reimburses business expenses that are necessary, actually incurred, supported by an itemised receipt, and claimed within [number] days. Anything outside these rules needs written approval from [senior role] before the cost is incurred, not after.
3. Responsibilities
- Claimants: spend as if it were your own money, keep itemised receipts, and submit accurate claims on time.
- Approving managers: check every claim line against this policy before approving — approval is a control, not a formality.
- Finance ([name/role]): pays approved claims in the [weekly/monthly] run, queries anomalies, and flags repeated breaches.
- Policy owner ([name/role]): keeps the limits current and approves exceptions in writing.
4. What you can claim
- Travel: standard-class fares booked in advance where possible; taxis where public transport is impractical or unsafe.
- Mileage: [rate] per mile for agreed business journeys in your own vehicle, aligned with current HMRC approved mileage rates. Commuting to your normal workplace is not claimable.
- Accommodation: up to [amount] per night ([amount] in London), booked through [system/person] where possible.
- Meals when working away overnight or beyond normal hours: up to [amount] per meal with an itemised receipt.
- Other costs — parking, professional subscriptions, small equipment — with your manager's approval in advance.
5. What you cannot claim
- Alcohol, except within a client entertainment budget approved in advance.
- Fines, penalty fares, or costs arising from your own error, such as fees for missed bookings.
- Personal items, upgrades, or costs for family members travelling with you.
- Anything without an itemised receipt, unless [finance role] agrees an exception in writing — card statements alone do not show what was bought.
6. How to submit a claim
- 1Enter your claim in [system/form] within [number] days of incurring the cost, one line per receipt.
- 2Attach the itemised receipt for every line — a clear photograph or the original.
- 3Code each line to [project/department/cost code] so finance can allocate it.
- 4Send the claim to your manager for approval. Nobody approves their own claim, whatever their seniority — the owner's claims are approved by [named person].
- 5Approved claims received by [day] are paid in [the next payroll / that week's payment run] to your usual bank account.
7. Gifts, hospitality and client entertainment
Entertaining clients and accepting hospitality can create bribery risk as well as cost. Entertainment above [amount] per head needs advance approval from [senior role], and anything offered to or received from a public official — at any value — must be approved and recorded in the [gifts and hospitality register]. The full rules are in our anti-bribery policy; where the two documents differ, that policy governs.
8. Checks, records and review
Finance spot-checks [number or percentage] of claims each [period] against receipts and diaries. Claims and receipts are retained for [period] to meet tax record-keeping requirements. A deliberately dishonest claim is treated as gross misconduct under the disciplinary policy.
The limits in this policy are reviewed [frequency, e.g. annually] against actual spend and current HMRC rates. Owner: [name/role]. Next review: [date].
How to adapt this template.
Set the money limits last — pull three months of real claims first so the caps reflect what your people actually spend.
Check current HMRC rules and approved mileage rates on GOV.UK before filling in any figure.
Name the claims system and the payment day precisely — most expenses friction is really about when people get paid back.
Decide who approves whose claims, including who approves the owner's, and write it in.
Brief managers that approval means checking each line, and show them what to look for.
Reissue the policy whenever a limit changes; a stale cap gets ignored in both directions.
Turn this template into trained, proven behaviour
A policy in a drawer proves nothing. In TrainedTeam this template becomes assigned training with knowledge checks, e-signature acknowledgments, version history, and an audit-ready record of who completed what, when.
Expenses Policy template FAQs
Is an expenses policy a legal requirement in the UK?
No law requires one. But without written rules you have no consistent basis for the tax treatment of reimbursements, no brake on creeping spend, and no fair ground for challenging a padded claim. It is one of the first policies a growing business feels the absence of.
Do we always need receipts for expense claims?
Make itemised receipts the default, because they show whether a cost was legitimate and how it should be treated for tax — a card statement shows the amount, not what was bought. Allow rare, written exceptions rather than general tolerance, and keep records for the retention period your accountant advises.
What mileage rate should we pay?
Most UK employers pay HMRC's approved mileage rates, because payments up to those rates are tax-free and simple to administer. The rates change, so this template references them rather than stating a figure — check the current rates on GOV.UK before you publish.
Can we refuse to pay a claim submitted months late?
You can enforce a submission deadline if the policy states it clearly and staff know about it, though most businesses pay a genuine late claim the first time with a reminder. The deadline exists for accurate monthly accounts, not for catching people out — say that, and apply it consistently.
How should we handle a suspected false expense claim?
Treat it as a potential disciplinary matter, not an expenses matter — investigate under your disciplinary policy before deciding anything. A deliberately dishonest claim is usually gross misconduct and can amount to fraud under UK criminal law, but take care to distinguish dishonesty from misreading a genuinely unclear rule.
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