Expense policy
A short, fair expense policy: categories and limits, what is never reimbursed, deadlines and tax, plus the rule for contractors.
Applies to: employees and, where their contract provides for it, contractors · Effective: [date]
We reimburse reasonable expenses incurred wholly for work, approved in advance, with a receipt.
| Category | Limit | Approval |
|---|---|---|
| Travel (economy class, train where under [4] hours) | [ ] | Manager, in advance |
| Hotel | [amount per night by city] | Manager, in advance |
| Meals while travelling | [daily amount] | None up to the limit |
| Home-office equipment | [amount per year] | Manager |
| Training and books | [amount per year] | Manager |
| Client entertainment | [ ] | Manager, in advance |
Fines, personal travel extensions, alcohol beyond [limit], first-class travel, upgrades, personal subscriptions.
4.1 Submit claims within [30] days with itemised receipts, using the expense claim form or [tool].
4.2 Reimbursement is paid with the next payroll or within [15] days.
Reimbursements follow the tax rules of the country of employment. Some allowances may be taxable.
Contractors are reimbursed only for expenses approved in writing and listed in their statement of work.
Step by step
- 1Copy the policy and complete every [bracket] with your own rules.
- 2Check the practice notes for each country where you have people: local law and collective agreements prevail.
- 3Consult employee representatives where the law requires it, then publish the policy and record that each person received it.
Watch-outs
What changes from one country to another, with the legal source.
Employers must reimburse all necessary business expenses, including a share of personal phone costs used for work.
California Labor Code § 2802; Cochran v. Schwan's (2014)Professional expenses must be borne by the employer; flat-rate allowances are exempt from contributions within URSSAF limits.
Cass. soc. case law; Arrêté of 20 December 2002Expenses paid or reimbursed to employees are exempt from tax if they would be deductible, with HMRC benchmark rates for subsistence.
ITEPA 2003, s 289A; HMRC guidanceLegal references checked on 15 Oct 2026. Rules change: check the source before you rely on it.
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