Company Expenses Policy

What is a company expenses policy in the UK?

A company expense policy template, also known as a corporate expense policy, is an internal document that sets out rules and procedures for reimbursement of work-related expenses by employers in compliance with UK employment and tax laws.

A standard business expenses policy template outlines types of business expenses to be covered, procedures for reimbursement of expenses, maximum caps for such expenses and required supporting documentation.

This sample expense policy can be a helpful legal tool for:

• UK employers and businesses requiring their employees to incur lots of work-related expenses;
• HR departments looking for a reliable template to create a professional reimbursement procedure;
• finance teams looking for a solid template to manage reimbursement in a compliant and timely manner.

What should this business expense policy template​ include?

A standard expenses policy template UK must include the following important elements:

Scope of Application

This section of every sample expense reimbursement policy​ must define categories of employees to whom it applies. These are usually employees whose behaviour or whose job duties may incur certain work-related expenses. This policy can cover:

• full-time or part-time employees;
• casual workers;
• volunteers
• interns;
• contractors; or
• agent workers.

General Information

The text of the policy should also outline the full name, job title and contact information of a person within the organisation responsible for the application of this policy. The person responsible for this policy can be:

• head of HR department;
• head of compliance team;
• head of accounting or finance department.

The appointed employee remains the first point of contact for those who wish to complain about the application of this policy or raise any concern.

List of Expenses

The most essential element for every business travel expense policy template is the inclusion of a detailed list of expenses that can be covered by the policy. The text of the policy should define the following:

• name of the expense;
• conditions on which compensation of such an expense is possible (if any);
• month, daily or weekly cap (in British pounds).

Approval and Reimbursement Process

A corporate expense policy template​ should also define the approval process for reimbursement of incurred expenses. The more detailed the process, the more it allows to avoid ambiguity and ensure smooth compliance with this policy by both the employer and employees. Inclusion of the clauses below helps to ensure clarity of the procedure:

• Establish a deadline or timeframe within which employees should submit expenses for reimbursement.
• Describe the means of communication by which requests should be submitted.
• List all necessary documents an employee must attach to claim compensation.
• Define a deadline or timeline within which the reimbursement should be made.
• Describe when reimbursement should be paid back.

Expense Categories Covered by this Expense Policy Template​

Depending on the business needs of each particular UK employer and industry specifics, this policy template may cover the following:

• expenses related to the usage of a private vehicle for work purposes;
• taxi expenses for working during late hours or on banking holidays;
• taxi expenses for attending business meetings and clients’ events;
• expenses related to the purchase of train, bus, metro or airplane tickets for work purposes;
• expenses related to booking hotels and accommodations while travelling for work;
• expenses related to completion of additional courses, diplomas, and certificates for professional growth;
• expenses covering meal expenses during business trips;
• expenses related to entertaining clients, suppliers or contractors for work-related purposes;
• monthly expenses for using a mobile phone, etc.

The list of suggested expenses below is not limited and may include other business or work-related expenses depending on the job title and seniority role.

Benefits of using this corporate expense policy template​

By customising this policy template with FasterDraft, you get the document with the following benefits:

• policy that is fully customisable for internal operations of your company;
• policy that complies with UK tax rules, the Employment Rights Act 1996 and PAYE rules;
• policy that includes all types of business-related expenses;
• policy that can be used by SMEs, startups and UK employers;
• policy that is written in simple words and has clear structure;
• policy created by solicitors;
• policy suitable for use in England, Wales, Scotland and Northern Ireland.

This expenses policy template can be used in conjunction with other employers’ internal documents, such as the Workplace Code of Conduct. If the employee violates this expense policy, the disciplinary measures, such as termination of employment contract or warning, may also apply.

How to customise this expenses policy template​ with FasterDraft?

To get a fully customisable policy template, follow a few easy steps below:

1. Click the “Create Document button”.
2. Answer simple questions in the form.
3. Select a template’s format – expense policy sample​ in PDF or Word.
4. Make a payment.

The document is ready for instant download immediately after the purchase.