Free expense policy template

A plain expense policy to adapt: what staff can claim, the limits, receipts, mileage and how claims are approved. Download it free and fill in the yellow fields.

Expense policy

Company: Your Business LtdPolicy owner: Priya Shah, FinanceApplies from: 1 November 2026Claims approved by: Your line managerClaims submitted within: 30 days of the cost

Spending limitsHotel, a night, outside London£120Hotel, a night, in London£180Meals while travelling, a day£30Client entertainment, a person£60, agreed in advanceRail travelStandard classMileage in your own vehicleHMRC’s approved rates

1. Who this policy is forThis policy applies to everyone who works for the company and spends money on its behalf. It explains what you can claim, how to claim it and how claims are approved. If something isn’t covered, ask the policy owner before you spend.

2. What you can claimYou can claim costs you pay yourself that are wholly for the company’s business: travel, hotels, meals while travelling away from your usual workplace, and other costs your approver has agreed in advance. The limits above are the most you can claim, not a target.

3. What you can’t claimYour normal journey to and from work, personal costs, fines and penalties, and anything over a limit that wasn’t agreed in advance.

4. ReceiptsKeep a receipt or invoice for every cost and attach it to your claim. Where VAT is charged, ask for a VAT receipt so the company can reclaim the VAT. A cost without a receipt may not be paid back.

5. Travel and mileageBook the most economical option that gets you there on time. If you use your own car, van, motorcycle or bicycle for business journeys, the company pays mileage at HMRC’s approved rates. Record the date, the journey, the reason and the miles for each trip.

6. Claiming and approvalSubmit your claim within the time above, with each cost on its own line. Your approver checks each cost against this policy, and may ask about it or turn it down. Approved claims are paid back with the next payroll or by bank transfer.

7. ChangesThe policy owner reviews this policy each year and tells everyone of any change before it applies.

Download the template

Free, with no sign-up. Fill in the yellow fields with your own names and limits. It’s a template to adapt, not legal or tax advice.

Download the PDF

Also asExcel

Make this in Hyrlo

In Hyrlo the policy is settings: a spending limit for each category, a receipt on every claim, and approval over an amount you choose. Each claim is checked against them before it’s approved.

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What an expense policy should cover

Who it applies to, and who owns it
What can and can’t be claimed
The spending limits
Receipts, and VAT receipts
Travel, and mileage at HMRC’s approved rates
How to claim, by when, and who approves

GOV.UK: travel mileage and fuel ratesChecked 7 October 2026

Questions

Is this legal advice?

No. It’s a plain starting point to adapt to your business. Check it against your employment contracts and take advice where you need it.

Do I need an expense policy?

No law says you must have one. It saves arguments: everyone knows what they can spend before they spend it, and approvers have one rule to check claims against.

What limits should I set?

Whatever suits your business and the places your team travels to. The figures in the template are examples to change, not recommendations.