Guide to managing expenses for charity staff, trustees, and volunteers in the UK. Learn about policies, reimbursement, and tax implications.
Charities often need to reimburse expenses for staff, trustees, and volunteers who incur costs while carrying out charity activities. Having a clear expenses policy ensures fairness and compliance.
Expenses should be reimbursed where they are necessarily incurred for the charity's work. Trustees should set clear policies about what can and cannot be claimed, and ensure claims are properly authorised.
HMRC has specific rules about taxable expenses and benefits. Charities must ensure they comply with tax rules and report expenses correctly in payroll or accounts where required.
Have a written expenses policy that outlines what can be claimed, submission deadlines, approval processes, and required documentation.
Trustees can claim expenses for carrying out their duties. These must be properly authorised and documented. Reimbursing trustees is not the same as paying them.
Volunteers can have out-of-pocket expenses reimbursed. This is important for accessibility and fairness. Set clear guidelines for what volunteers can claim.
Some expense payments may be taxable benefits. Ensure compliance with HMRC rules and consider dispensations for legitimate business expenses.
We can help you develop expense policies and ensure compliance. Contact us today.