Purpose and Scope
This policy sets the rules for incurring and claiming business expenses at [Organisation Name]. It covers claimable expenses, spending limits, required receipts, and the approval process.
It applies to all employees and to contractors with written approval to incur costs for [Organisation Name]. Reimbursable expenses must be reasonable, necessary, and incurred solely for business activities. This policy is not an employment contract and does not change the at-will employment relationship.
Working through related paperwork at the same time? See also our Form I-9 Employment Verification Procedure Template, Performance Review & One-to-One Template (UK) and Time Off for Dependants Template.
Accountable Plan Framework
[Organisation Name] reimburses business expenses under statutory accountable plan rules. To qualify for tax-free reimbursement, every expense must meet these criteria:
- Business Connection: Incur the expense for a clear business purpose.
- Substantiation: Prove the expense with an itemized receipt or detailed record within [Number] days of incurring it.
- Return of Excess Funds: Return any unspent advance within [Number] days.
Finance will decline expenses that fail these rules or process them through payroll as taxable income. Any exception to these rules requires prior written authorization from [Role].
Responsibilities
- Claimants:
- Use sound financial judgment when spending company funds.
- Get and keep detailed, itemized receipts.
- Submit complete, accurate claims on time.
- Approving Managers:
- Review every line item against this policy before approving.
- Verify expenses are legitimate, necessary, and assigned to the correct cost code.
- Finance Department / [Role]:
- Pay approved claims on the scheduled payment run.
- Challenge unsupported claims or unusual charges.
- Track and flag policy violations.
- Policy Owner ([Role]):
- Update reimbursement caps as operations and regulations change.
- Review and decide on written exception requests.
Claimable Expenses
- Travel: Standard economy fares booked in advance when possible. Use taxis or rideshares only when public transport is unsafe or impractical.
- Mileage: Approved business travel in a personal vehicle pays out at the standard statutory mileage rate. Normal daily commutes between home and your primary workplace are not claimable.
- Lodging: Standard hotel rooms up to [Amount] per night, booked through designated channels where required.
- Meals: Up to [Amount] per meal during required overnight travel or extended work hours, supported by an itemized receipt.
- Miscellaneous Costs: Parking, tolls, professional membership fees, and essential low-value equipment, with prior approval from [Role].
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Non-Claimable Expenses
- Alcohol, unless specifically authorized in a pre-approved client entertainment budget.
- Fines, parking tickets, traffic violations, or late fees caused by personal negligence.
- Personal items, leisure upgrades, or costs for accompanying family and guests.
- Expenses without an itemized receipt, unless [Role] approves a formal written exception. Card payment slips or charge slips are not valid receipts.
Claim Submission Procedure
- Enter each expense into [System/Form Name] as a separate line item within [Number] days of spending the money.
- Attach a clear photo or copy of the itemized receipt to every line item. Note the specific business purpose, including client or project names.
- Assign the correct project, department, or cost code to each line item.
- Submit the claim to your manager for review. You cannot approve your own claim. [Role] must approve claims submitted by senior managers.
- Finance processes claims submitted by [Day of Week/Time] during the [Payment Run Frequency/Schedule] payment run, paying directly to your registered bank account.
- Return any unspent advance funds to Finance within [Number] days of completing your travel or activity. Finance will count unreturned advances as taxable income.
Gifts, Entertainment, and Hospitality
- Client entertainment over [Amount] per person requires written pre-approval from [Role].
- Offering or accepting any gift, meal, or hospitality to or from a government official (domestic or international) requires prior written approval from [Role]. Log all items in the company register.
- All hospitality expenses must follow [Organisation Name]’s anti-bribery and corruption policy.
Compliance, Recordkeeping, and Policy Review
- Audits: Finance randomly audits [Number or Percentage]% of expense submissions against receipts and business calendars.
- Record Retention: Finance keeps expense records and receipts for [Period] to meet legal and audit standards.
- Non-Compliance: Submitting fraudulent or false claims is gross misconduct. It will trigger disciplinary action, up to and including termination.
- Policy Review: The policy owner reviews expense limits and terms [Frequency] against actual spending and current regulations.
Policy Owner: [Role] Next Review Date: [Date]
FAQs on an expense reimbursement policy
What is an expense reimbursement policy?
An expense reimbursement policy sets the rules for incurring and claiming business expenses at your organisation. It covers claimable expenses, spending limits, required receipts, and the approval process.
Having it written down means the same rules apply to everyone, so managers are not making judgement calls case by case under pressure.
What does an expense reimbursement policy include?
This template covers accountable plan framework, claimable expenses, non-claimable expenses and claim submission procedure.
Every section is written to be filled in. The bracketed placeholders mark the decisions that are yours to make, such as timescales, approval owners and retention periods.
How to implement an expense reimbursement policy with Whale
Copy this template into Whale and work through the bracketed placeholders so it reflects how your organisation actually operates.
Assign it to the teams it applies to so it sits where people work rather than in a shared drive, and set a review date so it gets revisited on schedule instead of quietly going out of date.
Use our templates to fast-track your documentation
Customize this template and 100s of others for free in Whale, the fastest way to get your team aligned.
