Employer's Expense Policy - Template, Sample Form Pro · UK-law
✓ Valid in United Kingdom · drafted to comply with local law
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EMPLOYER'S EXPENSE POLICY
________
(Company registration number: ________)
Registered office: ________
§1. INTRODUCTION AND SCOPE
1.1. This policy (the "Policy") sets out the procedure operated by the Company ("we", "us", "our") for the reimbursement of travel, accommodation, subsistence and other expenses reasonably and necessarily incurred by employees while carrying out business on behalf of the Company. It also explains how to submit a claim and the proof and authorisation required.
1.2. This Policy applies only to employees of the Company. It does not apply to independent contractors, consultants, casual workers, volunteers or agency workers, save where expressly agreed in writing.
1.4. This Policy does not form part of any employee's contract of employment and may be amended, withdrawn or supplemented by the Company at its discretion, including to reflect procedural changes or revised expenditure thresholds. Any amendment will be communicated in writing.
1.5. The Company will comply with its obligations in relation to the operation of PAYE for income tax and the deduction and payment of National Insurance contributions, and will treat and report reimbursements and benefits in accordance with the Income Tax (Earnings and Pensions) Act 2003 and applicable HM Revenue & Customs ("HMRC") rules and exemptions.
1.6. You may contact the ________ department before incurring an expense to confirm whether that expense will be reimbursed under this Policy.
§2. HOW TO MAKE A REIMBURSEMENT CLAIM
2.1. Any claim for reimbursement must be submitted to the ________ department within ________ days of the date on which the expense was incurred.
2.2. Each claim must be supported by proof of the expense, comprising original receipts, invoices or equivalent documents showing:
2.2.1. the name, address and (where applicable) VAT registration number of the supplier;
2.2.2. the cost (including VAT where applicable) and a description of the goods or services; and
2.2.3. the date of supply.
2.3. For claims involving payment by credit or debit card, you must also provide an itemised receipt showing any VAT registration number and the VAT amount.
2.4. Save where this Policy requires advance authorisation, your line manager must approve, in advance, the incurring of any non-routine or significant expense.
2.5. The Company may decline to reimburse any claim submitted after the deadline set out at clause 2.1, save where there are exceptional circumstances which explain the late submission.
2.6. All validly submitted claims will be paid to your nominated bank account through payroll.
§3. COMPLAINTS AND QUERIES
3.1. If you wish to raise a complaint about the reimbursement claim process, you must do so in writing to ________.
3.2. A complaint will be considered valid only if:
3.2.1. it is made in writing;
3.2.2. it contains a detailed explanation of the issue; and
3.2.3. it is accompanied by relevant supporting documents or evidence.
3.3. We aim to respond to a validly submitted complaint within ________ days beginning with the day on which the complaint is made. Nothing in this clause affects your right to raise a grievance under the Company's grievance procedure.
§4. TRAVELLING ON COMPANY BUSINESS
4.1. The Company will reimburse travel expenses incurred in the performance of your duties ("business travel"), but not the cost of ordinary commuting between your home and your permanent workplace, in accordance with the rules on travel expenses in the Income Tax (Earnings and Pensions) Act 2003. Business travel includes travel to a temporary workplace at which you are required to attend in the performance of your duties.
4.2. The Company will reimburse the cost of taxi use only where:
4.2.1. public transport is unavailable;
4.2.2. a significant amount of time is saved by using a taxi; or
4.2.3. it is cheaper having regard to the number of staff travelling together.
4.3. You may be reimbursed for the cost of a taxi home where:
4.3.1. you are occasionally required to work until ________ or later; and
4.3.2. public transport is no longer running, or it would be unreasonable for you to use public transport, by the time you are able to leave.
4.4. Where you use your own vehicle for business travel, you will be reimbursed at a fixed rate per mile covering fuel, running costs and depreciation, in line with HMRC's Approved Mileage Allowance Payments for the relevant tax year. Mileage reimbursement up to the approved amount is paid free of tax and National Insurance contributions.
4.5. Where the Company provides you with a vehicle, or with fuel for private use in a Company vehicle, you may be liable to income tax on the resulting taxable benefit, and the Company will report such benefits to HMRC as required.
4.6. When travelling by rail you must travel standard class, except for journeys exceeding ________ hours' duration, for which first class travel is permitted. All rail travel must be booked through ________, the Company's travel agency.
4.7. All domestic air travel must be booked through ________.
4.8. All overseas travel must be booked through ________, who are instructed to obtain the most cost-effective option for the relevant journey(s).
4.9. Your line manager must approve any overseas air or rail travel in advance. You are advised to give ________ at least ________ days' notice of your intended travel.
4.10. For all air travel, you may use only:
4.10.1. economy class for flights of less than ________ hours;
4.10.2. economy plus or equivalent for flights of between ________ and ________ hours;
4.10.3. the lowest available business class fare for flights of more than ________ hours; and
4.10.4. first class only where the upgrade is provided free of charge.
§5. OVERNIGHT ACCOMMODATION
5.1. Where you are required to stay away overnight on the Company's business, you must stay at reasonably priced accommodation, the cost of which must not exceed £________ (________) per night in London, or £________ (________) per night elsewhere.
5.2. You will be reimbursed for meals up to the following amounts:
5.2.1. £________ (________) for breakfast;
5.2.2. £________ (________) for lunch; and
5.2.3. £________ (________) for dinner.
§6. SUBSISTENCE EXPENSES
6.1. Where you incur reasonable subsistence expenses while travelling on the Company's business and are not staying away overnight, you will be reimbursed for the cost of meals upon submission of valid receipts and within the limits set out in this Policy.
6.2. You will not be reimbursed for the cost of any meals or refreshments incurred at or near your permanent place of work, or which would have been incurred in the ordinary course of your day-to-day duties.
6.3. All subsistence claims must be reasonable, incurred wholly, exclusively and necessarily in the performance of your duties, and supported by original receipts.
§7. OTHER EXPENSES
7.1. The Company will reimburse you for other reasonable expenses incurred wholly, exclusively and necessarily in the performance of your duties, provided that such expenses are authorised in advance and supported by valid receipts.
7.2. Such other expenses may include, but are not limited to, parking fees, toll charges, business stationery and other incidental costs incurred while on the Company's business.
7.3. You will not be reimbursed for any expense that is personal in nature, that is incurred in breach of this Policy, or for which the required proof and authorisation has not been provided.
§8. CLIENT/CUSTOMER ENTERTAINMENT EXPENSES
8.1. Before incurring any expense for entertaining clients and/or suppliers, you must obtain the prior authorisation of your line manager. Such entertaining will only be permitted where it is within budget and for the purpose of maintaining an existing business relationship, forming a new business relationship, or discussing a specific business transaction with the relevant client. We will reimburse you for entertaining expenses only to the extent that they are:
8.1.1. authorised in advance;
8.1.2. within the budget set for the event; and
8.1.3. incurred wholly, exclusively and necessarily in the performance of your duties.
8.2. You will not be reimbursed for entertaining other employees of the Company.
8.3. There is a monthly cap of £________ (________) for entertaining clients and/or suppliers, above which costs incurred will not be reimbursed.
8.4. You must comply with the Company's Anti-Bribery and Gifts and Hospitality Policy when entertaining clients and/or suppliers so as to ensure compliance with the Bribery Act 2010. You must not offer, give, request or accept any payment, gift or hospitality which is intended, or could reasonably be perceived, to influence improperly the conduct of business.
§9. TELEPHONE EXPENSES
9.1. We will reimburse the cost of business telephone calls (plus VAT) made using your private mobile or landline telephone, upon submission of the relevant telephone bill(s) as proof.
9.2. There is a cap of £________ (________) per month for business telephone calls made using your private mobile or landline telephone.
9.3. You will not be reimbursed for:
9.3.1. any telephone costs incurred using your private mobile or landline telephone beyond the monthly cap; or
9.3.2. private, personal or other non-business-related calls.
§10. DATA PROTECTION
10.1. The Company will process any personal data contained in expense claims and supporting documents in accordance with the UK General Data Protection Regulation and the Data Protection Act 2018. Such data will be used only for the administration of this Policy, the operation of payroll, and compliance with the Company's legal and tax obligations, and will be retained for the periods required by law.
§11. GENERAL
11.1. This Policy and any dispute or claim arising out of or in connection with it shall be governed by and construed in accordance with the law of England and Wales, and the parties submit to the exclusive jurisdiction of the courts of England and Wales.
11.2. The Company reserves the right to recover, including by deduction from your salary or other sums due to you (to the extent permitted by sections 13 to 27 of the Employment Rights Act 1996), any amount reimbursed to you in error or in respect of a claim found to be invalid, fraudulent or in breach of this Policy.
This Expense Policy has been implemented following review and endorsement by management.
Date: ________
Signed: ________, ________
for and on behalf of ________
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