Expenses policy

What staff can claim, and how. Prevents both overspending and awkward conversations.

What it means

An expenses policy sets what is claimable, the limits, the evidence required and the approval route.

Why it matters

Without one, every claim is a negotiation, and the tax treatment depends on whether the expense was wholly and exclusively for business.

What it looks like in practice

Cover travel, subsistence, mileage, accommodation, entertaining and equipment, with limits and a receipt requirement.\n\nReimbursed business expenses are generally not taxable; anything with private benefit may be.

What to watch out for

Client entertaining, which is not deductible for corporation tax however legitimate the business purpose. Keep it coded separately.

Where to get proper advice

Your accountant.