Expenses Policy template
HMRC AMAP mileage rates 2025/26, subsistence scale rates and approval procedure.
- HMRC EIM — Approved Mileage Allowance Payments
- ITEPA 2003
What the policy covers
- 1. POLICY STATEMENTyour company will reimburse employees for reasonable and necessary business expenses incurred in carrying out their duties.
- 2. MILEAGEEmployees who use their private vehicle for business travel (excluding the commute between home and a permanent workplace) may claim mileage at the following HMRC Approved Mileage
- 3. SUBSISTENCE AND MEALSWhere an employee is required to be away from their usual workplace on business, the following HMRC benchmark scale rates apply (no receipt required up to these limits):
- 4. ACCOMMODATIONReasonable hotel or accommodation costs incurred for approved overnight business trips will be reimbursed at actual cost, supported by a receipt.
- 5. CLIENT ENTERTAINMENTGenuine business entertainment of clients and prospective clients will be reimbursed at reasonable cost.
- 6. RECEIPTSReceipts are required for all expenditure of £10 or more.
- 7. APPROVAL AND SUBMISSIONAll expenses must be pre-approved by the employee's line manager before being incurred, where practicable
- 9. FRAUDULENT CLAIMSSubmitting a false or inflated expense claim is gross misconduct and will be dealt with under the Disciplinary Policy.
- 10. REVIEWMileage and subsistence rates will be reviewed annually following the HMRC Budget announcements.
Who needs it
Any UK employer running rotas, leave and the day-to-day of employing people. These set out the rules once so nobody argues about them twice.
Questions people ask
Is a expenses policy a legal requirement?
It rests on HMRC EIM — Approved Mileage Allowance Payments and ITEPA 2003. Some policies must be written down once a business reaches a certain size or does certain work; others are simply how a tribunal, an inspector or a client's auditor expects to see that you have thought about it. A clear, dated, signed policy is the evidence either way. Guidance, not legal advice.
Can I change it to suit how we work?
Yes. Inside Work-Lynx it is a starting point: put your company name in, adjust the arrangements to what you actually do, set the review date and publish it. Staff read and acknowledge it on their phones, and you can see who has not.
Is it up to date?
Last reviewed April 2025. The pack is updated when the law moves, and every policy carries a review date so it does not quietly go stale.
How do I get it?
It is preloaded in Work-Lynx with the other 48 UK policies. Work-Lynx is £2.50 a month plus £1 per employee, 14 days free, no card, and what you see on the pricing page is the bill.
Who is it for?
Any UK employer running rotas, leave and the day-to-day of employing people. These set out the rules once so nobody argues about them twice.
All 49 UK policies, £2.50 a month
This policy and 48 others are already in Work-Lynx, alongside GPS clock-in, rotas, timesheets, leave and Employ AI for UK employment law. £2.50 base plus £1 per employee a month. 14 days free, no card, no sales call.
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