Travel and expenses policy template for UK companies

A travel and expenses policy tells staff what business travel they can claim, at what rates, and how to get paid back. The template below uses HMRC’s 2026/27 tax-free rates: 55p a mile for cars and £5 to £25 for meals. Copy it, replace the text in square brackets and update the rates each April.

What rates should a UK expenses policy use in 2026/27?

Most UK companies base their policy on HMRC’s approved rates, because payments at or below them are free of tax and National Insurance. These are the 2026/27 figures from HMRC’s mileage rates page, updated 21 May 2026.

A further £10 can be paid on top of the £5 or £10 meal rate if the journey is still going at 8pm. HMRC’s benchmark rates guidance confirms that since 6 April 2019 you do not need to check receipts for these meal allowances. You only need to be satisfied the trip was qualifying business travel. Work out mileage claims with our mileage calculator.

What changes in 2027 and 2028?

Budget 2026 changed both mileage and meal rates, so plan to update your policy twice.

• From 6 April 2027: the car and van rate above 10,000 business miles rises from 25p to 35p, according to the CIPP. The 55p rate becomes permanent.
• From 6 April 2028: ICAEW reports that the meal rates are replaced by £20 for 5 hours or more, £60 for 10 hours or more and £75 for 24 hours or more. Overseas rates move to a tiered system.

HMRC’s policy paper of 17 June 2026 set the 55p rate retrospectively from 6 April 2026, up from 45p.

The travel and expenses policy template

Copy the sections below into your own document. Text in square brackets is for you to complete.

1. Purpose and scope. This policy applies to all employees and directors of [Company name] who travel or spend money on company business. It explains what we reimburse, at what rates and how to claim.

2. Business travel. We pay for travel needed to do your job, including trips to clients, suppliers and temporary workplaces. We do not pay for ordinary commuting between your home and your normal workplace.

3. Travel class and booking. Book standard class rail and economy flights unless [name or role] approves otherwise in advance. Book through [booking tool or person] where possible.

4. Mileage. If you use your own vehicle, we pay HMRC’s approved rates: [55p] a mile for the first 10,000 business miles in each tax year and [25p] a mile after that, plus [5p] a mile for each colleague you carry. Record the date, start, destination, purpose and miles for each journey. You must have business use cover on your car insurance.

5. Meals while travelling. On qualifying business trips we pay [£5] for 5 hours or more, [£10] for 10 hours or more and [£25] for 15 hours or more ongoing at 8pm. [Or: we reimburse actual receipted costs up to £[amount] a day.]

6. Hotels. We pay for a standard room up to £[amount] a night outside London and £[amount] in London, including breakfast. Book [number] days ahead where you can.

7. Client entertainment. Get approval from [role] before entertaining clients. Record the names of guests, the business purpose and the cost.

8. What we will not pay. Commuting, fines and parking penalties, alcohol on solo trips, personal items, upgrades you have not had approved, and costs for partners or family.

9. How to claim. Submit claims through [expenses app or form] within [30] days, with a receipt for every cost except the flat meal and mileage rates. Your manager approves claims up to £[amount]; a director approves anything higher. We pay approved claims in the next payroll.

10. Misuse. False or inflated claims are a disciplinary matter. Personal spending on a company card is not allowed.

11. Review. [Role] reviews this policy each April when HMRC’s rates change. This version applies from [date].

Which rules apply to you?

Use this list to decide what to put in your policy.

• If staff use their own cars, include the mileage clause and update it on 6 April 2027 for the 35p rate.
• If you pay more than 55p a mile, the excess is taxable, so run it through payroll.
• If staff work at one site for more than 24 months, that site may become a permanent workplace under HMRC’s 24-month rule, and travel there becomes commuting.
• If you reimburse actual meal costs, ask for receipts, since the no-receipt rule applies only to benchmark rates.

For the wider rules, see our guides to the staff expenses policy, reimbursing employee expenses, HMRC receipt rules and client entertainment tax.

What to do now

1. Fill in the template and share it with staff.
2. Check your mileage rate. If you still pay 45p, staff can claim tax relief on the gap through HMRC.
3. Diary 6 April 2027 and 6 April 2028 to update the rates.
4. Set up your expenses software to enforce the limits.

Frequently asked questions

Is a travel and expenses policy a legal requirement?

No law requires one, but it helps you apply HMRC’s rules consistently and defend claims if HMRC asks. It also makes clear what staff can and cannot claim.

What is the HMRC mileage rate for 2026/27?

It is 55p a mile for the first 10,000 business miles in a car or van, and 25p a mile after that. Motorcycles get 24p and bicycles 20p.

Do employees need receipts for meal allowances?

Not if you pay at or below HMRC’s benchmark rates. Since 6 April 2019 employers only need to check that the travel was qualifying business travel.

When will the mileage rate above 10,000 miles change?

Budget 2026 raises it from 25p to 35p a mile from 6 April 2027. The 55p rate for the first 10,000 miles is permanent.

Can I pay staff more than HMRC’s rates?

Yes, but anything above the approved rate is taxable pay. You must put the excess through payroll and deduct tax and National Insurance.