Expenses policy template (UK) for finance teams
Set the rules for staff expense claims and company cards: how to claim, who approves, the spending limits and what the company won't pay for. This expenses policy template is one Word policy with suggested limits you change to suit.
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What the policy looks like
When you need it
Any company that pays staff back for costs, or gives out company cards, needs written rules that everyone follows in the same way. Adopt the policy or review it when:
- Staff start travelling or entertaining clients regularly
- You issue the first company cards, or more of them
- You move to a new expenses system
- Auditors or the board ask how claims are checked and approved
- A claim turns out to be wrong and the rules weren't clear
How to use the expenses policy template
- Set the approval limits in the matrix first. The policy points to the delegated authority matrix for who approves claims and card limits.
- Fill in the limits table. Hotel, meal and entertainment caps are suggestions in brackets. Change them to fit your company.
- Enter your mileage rate. Use the tax-free rate where your staff work.
- Choose how finance checks claims. Every claim, or a set share of claims each month.
- Name the owner and approver. Add the next review date and tell staff where the policy lives.
Questions
What should an expenses policy include?
How and when to claim, the receipts needed, who approves claims, spending limits for travel, hotels, meals and entertainment, the mileage rate, what the company won't pay for, rules for company cards and what happens if someone makes a false claim.
Do employees need receipts for expenses?
This policy asks for an itemised receipt for every item, as a card slip alone doesn't show what was bought. HMRC expects employers to keep payroll records, including records of taxable expenses and benefits, for three years from the end of the tax year they relate to.
Can staff claim for travel between home and the office?
No. HMRC doesn't treat travel to and from your normal place of work as business travel, unless it is a temporary place of work. The policy lists it as something the company won't pay for.
What mileage rate should we pay?
If you pay at or below HMRC's approved mileage rate, there is nothing to report and no tax to pay. If you pay more, the extra goes on a P11D or through payroll. The policy has a space for your rate.
Who should approve expense claims?
The claimant's line manager, within the limit in the delegated authority matrix. Nobody approves their own claim. In the matrix, the FD approves executive directors' expenses and the chair approves the chief executive's and the FD's.
Also in the finance policies and procedures manual
Who it's for
Finance directors and financial controllers at small and mid-sized companies who want one clear set of expense rules.
Last checked
Checked against HMRC guidance on employee travel, mileage and payroll records in November 2026.
