What expenses should I be paid as a contractual right?

If you pay for extra costs at work, on behalf of your employer, for example to travel to a training course, it’s generally the case that you will be reimbursed for these. 

Understand what you can claim ✅

As an employee, your employer should provide you with a contract of employment, and in this contract, or an associated employee handbook, you should receive details of which specific expenses will be reimbursed.

You could expect these to include costs which are work related and which you have paid for. Most employers will have an expenses policy, with rules and procedures for claiming expenses. Make sure that you understand the expenses policy of your company. It should be clear about what types of expenses you can claim. 

Your employer will probably have some rules about what types of costs are permitted. For example, they may say that rail tickets need to be standard class, rather than first class. 

It will also cover other aspects, such as the process for submitting your expenses, and who needs to approve them. The policy will also include the date of the month on which expense claims need to be approved and submitted, to be included in the next pay cycle. 

What types of personal expenses can be claimed? 🚄

There is a range of expenses for which you can expect to be reimbursed. These include, for example: 

• Expenses for travelling to a work location which is different from your normal place of work.

• The costs of a hotel when staying away for work purposes.

• Petty cash for items you may buy on behalf of your firm to carry out your job.

• Mileage expenses when using a private car for travelling on company business. (Tip: check that your car insurance covers you for business travel, which is different from ‘commuting’ cover. For this reason, your employer may ask to see your insurance documents.)

Hold onto receipts 🧾

It’s very important to ask for and hold onto a receipt for your reimbursable expenses, to enable you to claim the money you have paid, as a personal expense. 

Your employer will generally insist on you providing a receipt, with your claim, as all expense claims need to be validated. 

They will also need to keep proof of the expenses as part of their reporting to His Majesty’s Revenue and Customs (HRMC). 

An expense management app can help employees and employers 📱

Many expense management processes rely on the employee holding onto a paper receipt to prove that they spent their personal money on behalf of their employer. 

Paper receipts are easily mislaid or lost. And a paper-based expense claims process can cost time and effort for employees, managers and finance teams. Most of all, paper-based expense processes mean that many employees have to wait to re-claim their own money.

It’s worth asking your employer whether they have considered an expense management app. This enables receipts to be photographed at the time of purchase, so the value and category of purchase can be approved and processed digitally. Your employer can then incorporate your expenses onto their company accounts and repay you automatically. Which means no holding onto receipts, no expense form to complete, and quicker repayment. 

Disclaimer: This is not legal, accounting, or tax advice - it's simply a guide. If you need help, check with your accountant or contact HMRC directly.