What expenses can employees claim?

Employees can claim reimbursement for expenses incurred wholly, exclusively and necessarily in the performance of their duties. Common qualifying expenses include business travel (but not ordinary commuting), business meals and subsistence, accommodation for business trips, professional subscriptions, and work-related equipment. HMRC's Employment Income Manual provides detailed guidance.

Do I need receipts for expense claims?

Yes. HMRC requires employers to keep evidence of expense payments. Employees should obtain and retain receipts for all claimed expenses. If a receipt is unavailable (e.g. for small purchases), a written record of the expense with the date, amount and business purpose should be kept. HMRC may request evidence during a compliance check.

Are expense reimbursements taxable?

Expense reimbursements are not taxable if the expenses qualify for tax relief under ITEPA 2003 — i.e. they were incurred wholly, exclusively and necessarily in the performance of duties. If the employer reimburses non-qualifying expenses (such as personal items or ordinary commuting), the reimbursement is treated as taxable earnings and must be reported on the employee's P11D.

What is the difference between a dispensation and the current system?

Before April 2016, employers could apply for a dispensation from HMRC, which allowed them to reimburse qualifying expenses without reporting them on P11D forms. Dispensations were abolished from 6 April 2016. Under the current system, employers must check that each expense payment is exempt under ITEPA 2003. Exempt payments do not need to be reported; non-exempt payments must be reported on the P11D.

Can I claim for meals during a normal working day?

Generally, no. HMRC does not allow tax relief on meals during a normal working day at your usual workplace. However, if you are travelling on business (i.e. away from your normal workplace), you can claim reasonable subsistence costs for meals. The cost must be reasonable and not extravagant.

Expense Claim Form Template

Use this free template to create a professional expense claim form for your UK business or organisation.

FreePDF & Word

Your data stays on your device — nothing is sent to any server.

claimant

Employee / Claimant Name*

Department

Company / Organisation Name*

Claim Period*

expenses

Expense 1 — Date*

Expense 1 — Description*

Expense 1 — Category*

Expense 1 — Amount (£)*

Expense 1 — Receipt Attached*

Expense 2 — Date

Expense 2 — Description

Expense 2 — Category

Expense 2 — Amount (£)

Expense 2 — Receipt Attached

Expense 3 — Date

Expense 3 — Description

Expense 3 — Category

Expense 3 — Amount (£)

Expense 3 — Receipt Attached

totals

Total Amount Claimed (£)*

authorisation

Authoriser Name*

Date of Claim*

Document Preview

EXPENSE CLAIM FORM Company: [companyName] Claimant: [claimantName] Claim Period: [claimPeriod] Date of Claim: [todayDate] -------------------------------------------------- ITEMISED EXPENSES -------------------------------------------------- 1. Date: [expense1Date] Description: [expense1Description] Category: [expense1Category] Amount: £[expense1Amount] Receipt: [expense1Receipt] -------------------------------------------------- TOTAL CLAIMED: £[totalAmount] -------------------------------------------------- DECLARATION I confirm that the above expenses were incurred wholly, exclusively and necessarily in the performance of my duties for [companyName]. I have attached receipts where available and confirm that I have not previously claimed reimbursement for any of these items. Claimant signature: ______________________________ [claimantName] Date: [todayDate] AUTHORISATION Approved by: ______________________________ [authoriserName] Date: _______________

Important Notes

Legal Disclaimer

Employee expenses in the UK are governed by the Income Tax (Earnings and Pensions) Act 2003 (ITEPA 2003), Part 5. Expenses must be incurred wholly, exclusively and necessarily in the performance of the employee's duties to qualify for tax relief. Since April 2016, HMRC abolished dispensation agreements; employers must now ensure that payments and benefits are exempt under ITEPA 2003. HMRC's Employment Income Manual (EIM) provides detailed guidance on which expenses qualify. Employers must keep records of all expense payments and may be subject to HMRC compliance checks. Non-qualifying expenses reimbursed by the employer are treated as taxable earnings and must be reported on the employee's P11D.

This template is provided for informational purposes only and does not constitute legal advice. For complex legal matters, we recommend consulting a qualified solicitor.

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