8/ Expenses

PURPOSE

This policy sets out what expenses employees can claim for work-related travel, subsistence, and costs when working away from their usual place of work. It is based on HMRC guidelines and aims to ensure fair reimbursement without creating tax liability.

Abuse of this policy may result in disciplinary action.

It is not the purpose of the payment of expenses to provide you with an incentive or reward for non-standard duties.  The amount of any payment for expenses will be the additional costs incurred as a result of your undertaking a work assignment.

Any special ad hoc arrangements made to suit particular circumstances will not be considered to set any form of precedent.

The Expenses Policy must be followed in strict accordance with a Manager or Director’s pre-authorisation.   

GENERAL PRINCIPLES 

·         You are expected to use the most cost-effective transport methods, and routes when travelling to carry out your duties.

·         Expenses must be wholly, exclusively and necessarily incurred for work purposes.

·         Claims must be supported by itemised vatable receipts, which clearly display the date, time, name of business, and VAT registration number.

·         All claims forms and receipts must be submitted to accounts@reprotec.uk  within 5 days of the expense being incurred/end of working away period, otherwise deductions will be made. It is not the responsibility of the company to pursue employees for receipts.

·         Personal expenses, or any costs that provide a dual purpose (business and personal), are not reimbursable.

·         Payment of your expense claims will be delayed or withheld if you are unable to provide appropriate evidence of the cost incurred.

·         Fraudulent claims may result in your dismissal.

TRAVEL EXPENSES

You can claim travel costs when travelling for business purposes, excluding your normal commute to your usual place of work.

For example:

Home to normal workplace:  10 miles

Home to other venue:  25 miles each way  

Claimable mileage:  15 miles each way (difference only)

Insurance for using own vehicle on company business

For use of own vehicle in work time to travel on company business, including to different sites of work, business class insurance is required.

Travel for Training

In the situation where a company van or car is not available or suitable, and you are required to attend a training session in a place other than your place of work, then with prior approval of the Management, mileage can be claimed for the cost of the additional distance beyond your normal commute to work, ie HQ/ G2 Unit.  

Insurance for using own vehicle to travel to a training provider

Should you use your own vehicle to travel to and from a training provider venue, you must ensure with your own insurance company that you are insured to drive under such circumstances.  Depending on your insurers, you may be required to add business use to your insurance policy at your own expense.

Allowable Travel Expenses:

·         Public transport (train, bus, underground, etc)

·         Mileage for personal car use - at the rate notified by HMRC of 45p for the first 10,000 business miles in the tax year.

·         Parking fees, congestion charges and tolls (if incurred during business travel)

Not allowed Travel Expenses:

·         Daily commute from home to the customer’s work site or your regular workplace.

·         Parking fines, speeding tickets or any other fines that are the responsibility of the driver.

2. Subsistence (Meals and Refreshments)

Subsistence can be claimed when you’re travelling for authorised work or training away from your normal location, where a meal is necessary as part of that travel.

·         A budget of £35.00 per day has been set to cover breakfast at a maximum of £10.00 and an evening meal of a maximum of £25.00 that can be claimed with receipts, as long as they are reasonable and not excessive. This is an advance of company money that may be due to an employee, but dependent on duration or changes in schedules, such as returning home part way through, may result in money needing to be refunded to the company.

·         If a lunch is purchased in addition, then the cost of this will be deducted from the breakfast/evening meal allowance where applicable.

·         Expense claims forms and all VAT receipts must be uploaded and submitted for approval within 5 days of the expense being incurred/end of working away period, otherwise deductions will be made.  If no receipts are provided, the claim will be disallowed, unless previously approved by a director. It is not the responsibility of the company to pursue employees for expense claims.

·         Claims must be supported by itemised vatable receipts, which clearly display the date, time, name of business, and VAT registration number.  (See Appendix for an example).  Screen shots of online orders or bank payments will not be accepted, unless in extreme circumstances and at the discretion of a Director.

·         The expense allowances are for the sole use of the recipient and should not be used to purchase food or refreshments for others and doing so, would result in the money needing to be refunded and possible disciplinary action.

Examples of allowable subsistence claims:

·         Lunch bought while attending a full-day meeting in another town/city

·         Evening meal while staying overnight for work.

·         Breakfast bought before 6am when appropriate with travel and site arrangements. 

Not allowed subsistence claims:

·         Meals during a normal day at your usual place of work

·         Breakfast on ‘travel from home’ days and evening meal on ‘travel home’ days.

·         Other examples include personal toiletries, mini-bar drinks, movies in hotels, meals for family/friends, leisure activities (e.g. gym, spa)

 Exceeding the Cost of Expenses Payment

The allowance provided is considered to be suitable and sufficient for the means of authorised working away from home. Any expense over and above the allowance value is at the cost of the employee and will not be re-imbursed unless otherwise agreed by a Director.

Example of a claims form and approved receipts

With reference to Appendix 2, claims must be submitted with receipts and dates, reasons, and locations clearly noted under the pre-authorisation of a manager or Director.