Reimbursement of Expenses policy template
Our Reimbursement of Expenses Policy Template outlines guidelines for employees to claim expenses, ensuring transparency and compliance with company reimbursement procedures.
- 2 pages / 574 words.
- Last updated 07/02/2025.
- Designed for United Kingdom use.
- Suitable for use in other territories; check local laws first.
- Instantly download as Word / PDF / plain text, or send by email.
- Includes 12 months’ access, with all updates to this page provided free of charge and notified to you.
Reimbursement of Expenses policy
1 Overview
1.1 Expenses incurred by employees will be reimbursed in accordance with these rules. These rules are designed to provide for the reimbursement of reasonable out-of-pocket expenses wholly, exclusively, necessarily and actually incurred by an employee engaged on the business of the Company.
2 Scope
2.1 This policy is applicable to all employees of [company name].
3 General principles
3.1 Claims
3.1.1 In order to claim back expenses, you must complete and sign a claim form, have it countersigned by your line manager and then submit it to [insert name of contact].
3.1.2 You are expected to provide original VAT receipts for expenditure incurred where this is reasonably practicable and you should give a full description of the expenditure incurred and why it was necessary.
3.1.3 You should ensure all expense claims are made and submitted promptly.
3.1.4 The Company does not advance expenses.
3.2 Travelling expenses
The Company will reimburse travelling expenses necessarily incurred for business purposes. This is generally limited to the cost of travel from the Company's office to the business destination and return. Journeys between an employee's home and normal place
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A reimbursement of expenses policy is a set of guidelines and procedures that define how an employee can be reimbursed for any expenses incurred during the course of their work. Such expenses could include travel expenses, meals, lodging, equipment or materials, or other related costs. The policy outlines what expenses are eligible for reimbursement and how they will be reimbursed.
Having a clear reimbursement of expenses policy can help ensure that employees are properly reimbursed for expenses incurred while conducting company business. It can also help prevent misunderstandings or disputes between employees and employers regarding what expenses are eligible for reimbursement and how reimbursement will be handled.
Send to appropriate internal recipients such as employees, workers, contractors etc. and request confirmation that is has been read and understood.
Issue during onboarding / after changes / planned refresher.
Compliance
Compliance
This Reimbursement of Expenses policy template incorporates relevant UK laws and HR standards, including those listed below:
Here are some key UK employment law considerations to keep in mind when implementing expenses policies:
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Compliance with tax law: The policy must comply with HMRC rules, which outline what expenses can be reimbursed tax-free, and which require tax to be deducted from certain payments.
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Reasonable and necessary expenses: Employers are only required to reimburse expenses that are reasonable and necessary for the employee to do their job. This means that expenses must be directly related to work duties, and not personal expenses.
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Discrimination: The policy must not discriminate against any employees on the basis of protected characteristics, such as age, race, gender, or disability.
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Health and Safety: Employers must ensure that expenses policies do not require employees to carry out work activities that are unsafe or put their health at risk.
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Data Protection: Employers must ensure that any personal data collected as part of expenses policies is handled in compliance with the General Data Protection Regulation (GDPR) and the Data Protection Act 2018.
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Employee Communication: Employers must ensure that the expenses policy is clearly communicated to all employees, and that employees understand the policy requirements, including how to claim expenses and what receipts and documentation are required.
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Grievances and complaints: Employers must have a system in place for employees to raise concerns or complaints about the expenses policy, and for these to be investigated and resolved fairly.
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Contractual entitlements: Employers must ensure that the policy is consistent with the terms of the employment contract and any relevant collective agreements.
Frequently Asked Questions
Frequently Asked Questions
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Can I use this template in my small business?
Yes. The Reimbursement of Expenses policy template is designed to be flexible and suitable for organisations of all sizes, including small businesses and charities. It follows UK employment law best practice, so even if you don't have an in-house HR team, you can confidently apply it.
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Is this template compliant with 2025 UK employment law?
Absolutely. All of our templates are drafted with the latest ACAS guidance and UK employment legislation in mind. We review and update them regularly, so you can be confident they remain compliant.
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Can I customise it for my organisation?
Yes, we highlight the areas that you need to update with your own details, and where you need to make decisions to suit your situation. This saves you time and ensures that you meet best practice.
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Do I get instant access?
Yes. Once purchased, you'll be able to download it instantly. Templates are provided in editable Word or Excel format so you can customise them easily, and in PDF format for easy sharing.
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What if I need more help, not just this template?
If you're looking for broader support, we also offer toolkits and library bundles that include this template, along with other HR templates and policies for fully managing your situation. These may be more cost-effective if you need deeper advice.
