Purpose and Scope
This policy sets out the rules for incurring and reimbursing business expenses at [Organisation Name]. It details claimable costs, spending limits, required receipts, and the process for submitting, approving, and paying claims.
This policy applies to all employees and to contractors with a written agreement to incur costs for [Organisation Name]. We only reimburse necessary, reasonable expenses incurred while performing official duties.
Working through related paperwork at the same time? See also our US ADA Reasonable Accommodation Policy Template, Performance Review & One-to-One Template (UK) and Right to Work Check Procedure Template.
Policy Statement
[Organisation Name] reimburses necessary business costs backed by itemised receipts, provided you submit your claim within [Number] days of spending the money. You must get written authorization from [Role] before incurring any expense that falls outside these standard rules.
Deliberately false or dishonest claims are prohibited. We investigate fraudulent claims under our disciplinary procedure as potential gross misconduct.
Responsibilities
- Claimants: Spend responsibly, keep itemised receipts, assign correct cost codes, and submit accurate claims on time.
- Approving Managers: Check and verify every claim line against policy rules before approving it.
- Finance ([Role]): Process verified claims in the regular payment run, investigate discrepancies, and report repeat policy breaches.
- Policy Owner ([Role]): Maintain policy limits based on official tax guidance and review formal written exception requests.
Claimable Expenses
- Travel: Standard-class fares, booked in advance whenever possible. Use taxis only when public transport is impractical or unsafe.
- Mileage: [Rate] per mile for approved business travel in a personal vehicle, aligned with official statutory rates. You cannot claim normal commuting between home and your regular workplace.
- Accommodation: Up to [Amount] per night (or up to [Amount] in high-cost areas like London). Book through [System/Role] where possible.
- Meals and Subsistence: Up to [Amount] per meal when working away overnight or past standard working hours. You must provide itemised receipts.
- Other Operational Costs: Parking fees, professional subscriptions, and small equipment purchases, subject to prior manager approval.
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Non-Claimable Expenses
- Alcohol, unless part of a pre-approved client entertainment budget.
- Fines, penalty fares, or costs from personal error (such as missed booking fees).
- Personal items, service upgrades, or expenses for family members travelling with you.
- Claims without an itemised receipt, unless [Role] approves the exception in writing. Credit or debit card slips and bank statements alone are not valid proof.
Submission Procedure
- Enter your claim into [System/Form] within [Number] days of spending the money. Add one line per receipt.
- Attach an itemised receipt (original or a clear digital image) to each claim line.
- Code each item to the correct [Cost Code/Department/Project].
- Submit the completed claim to your manager. You cannot approve your own expenses. [Role] must approve claims for senior roles.
- Submit approved claims by [Day] for inclusion in the [Payroll / Payment Run]. Payments go directly to your bank account.
Gifts, Hospitality, and Client Entertainment
- Client entertainment over [Amount] per head requires written approval from [Senior Role] in advance.
- You must get advance approval for any gift or hospitality offered to or received from a public official, regardless of value, and log it in the [Gifts and Hospitality Register].
- All entertainment spending must comply with statutory anti-bribery laws and internal compliance policies.
Records, Compliance, and Policy Review
- Finance spot-checks [Number or Percentage] of claims each [Period] against receipts and activity logs.
- We keep claims and supporting documents for [Period] to meet regulatory record-keeping standards.
- We review expense limits [Frequency] against spending patterns and statutory tax rates.
- Policy Owner: [Role]
- Next Review Date: [Date]
FAQs on an expenses policy
What is an expenses policy?
An expenses policy sets out the rules for incurring and reimbursing business expenses at your organisation. It details claimable costs, spending limits, required receipts, and the process for submitting, approving, and paying claims.
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 expenses policy include?
This template covers claimable expenses, non-claimable expenses, submission procedure and gifts, hospitality, and client entertainment.
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 expenses 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.
