Employees and consultants who perform duties for xxx are eligible for reimbursement of expenses under HM Revenue & Customs guidelines. xxx will reimburse expenses submitted in line with these regulations:

Employees may reclaim an expense incurred wholly, exclusively and necessarily in the performance of their duties subject to certain limitations. Where the expense is not incurred wholly, exclusively and necessarily in the performance of their duties, the refund of such expense will be treated by the HM Revenue & Customs as taxable and therefore additional tax and National Insurance will be chargeable.

 Business Travel

  • Travel – Train Wherever possible tickets are to be booked through the xxx. The journey must be for business purposes. Second Class should be used for all journeys other those journeys in excess of 3 hours for which First Class may be used subject to a Director’s approval. All bookings for air flights should be booked through the company travel agency. An exception to this rule is bookings made online with so-called ‘low cost’ airlines. A minimum of three working days notice of airline ticket requirements is desirable.
  • Mileage – When travelling in your own car, HM Revenue and Customs set out rates for reimbursement of business mileage. There is one rate irrespective of the engine size of your The rate of 40 pence per mile, will apply for the first 10,000 business miles in a tax year, dropping to 25 pence per mile for those travelling over the 10,000-business mile threshold. In order for the company to monitor this accurate cumulative business, miles must be recorded on the claim form.
  • Subsistence – When away on business, reasonable expenses for meals may be c If the trip involves an overnight stay then the Inland Revenue will allow up to £5 per day as incremental costs such as laundry, papers and phone calls. Anything over that limit will render the whole cost taxable.
  • Hotel – Wherever possible book overnight accommodation through the xxx to obtain best rates.
  • Foreign currency – If foreign currency is required it is often more convenient for staff to obtain this from a currency exchange or ATM abroad. The company will reimburse all costs associated with this conversion on receipt of appropriate receipts or credit card statements. A foreign currency advance must be cleared before an application is made for another cash or foreign currency advance.


  • Phones -Where mobile phones are used mostly for business use but are held in the name of the individual only the cost of business calls are allowed. The rental is a personal expense and no proportion of it is an allowable Where only calls made for business reasons are recovered then no further liability will accrue.
  • Home Telephones -We will reimburse the cost of any business calls, made from your home telephone. The cost of private calls, equipment and line rental is not an allowable


XXX will reimburse reasonable costs of each receipt must include details of the costs claimed in accordance with HM Revenue and Customs regulations set out below.

Extract from HMR&C Website

“An employee who requests a deduction for entertainment expenses should be able to support that request with reasonable records of the amounts spent on particular occasions, the nature of the entertainment, the persons entertained and the reasons for the entertainment.”


Other Eligible Costs

All other costs must be wholly, exclusively and necessarily incurred in the performance of your duty, if in doubt then ask the Finance Director.

  • Memberships – Employees who maintain active memberships in professional bodies and business/community organisations may be eligible for reimbursement. The employee must be active in the organisation and it must be used solely for
  • Subscriptions to Publications – Business publications delivered to the office are circulated and are invoiced directly to
  • Training Expenses —  Reimbursement of Training Expenses Policy


At the discretion of the Finance Director, Cash Advances may be granted in special situations; excessive use of Cash Advances may result in additional taxable

Expense Claims

A claim for expenses must be submitted monthly. Reimbursement is made by cheque within 10 Business Days or, if the claim is greater than £250, paid directly into your bank account upon receipt of the standard expense form.

The current Expense Claim form can be accessed via xxx

Expense Claim forms are authorised by the staff member’s Line Manager or fellow Director. Finance will review the claim to ensure that the ‘wholly, exclusively and necessarily’ rule applies and that the appropriate level of detail is recorded. If there is any doubt over the claim the claim will be referred back to the Line Manager or a Director for clarification.

Expense claims must be made within 60 days of the date of the expense. Any claims submitted after this time period has elapsed may not be paid.

Policy Review

The Head of Finance will review the Reimbursement of Expenses Policy on a regular basis. The policy will be reviewed for completeness, effectiveness and usability.

Policy Awareness

All staff who may incur expenses whilst carrying out their duties are directed to the policy, the current version of which will be readily available on the intranet. The Business Services Manager will, in the first instance, be responsible for the interpretation and clarification of the Reimbursement of Expenses Policy.

Any staff member requiring education about any aspects of this Policy should discuss their needs with their Line Manager.

Applicability and Enforcement

This Policy has the support of the Board and applies to all xxx staff.

Failure to adhere to the policy may be treated as a disciplinary matter. The Managing Director has overall responsibility for the enforcement of this policy utilising the disciplinary procedures as appropriate.

End of Policy


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