What is a Staff Expense Claim Form?
Expense claims are a standard procedure used by businesses to reimburse employees for costs incurred during work-related activities.
In this article, we’ll cover everything you need to know regarding staff expense claim forms – from their purpose and how they function to common challenges you may face when managing them.
What is an Expense Claim?
Employees can submit expense claims for purchases that directly support their job responsibilities. This is particularly useful in workplaces where employees often pay for work-related expenses with their own money instead of a company card.
While every business has its own guidelines on what qualifies as a reimbursable expense, common examples include travel, fuel and meals.
When making an expense claim, employees must provide specific details about each cost, including the date of purchase, a description of the item bought, the amount paid and proof of purchase.
What Expenses Can Staff Claim For?
Employees can submit expense claims for a variety of business-related costs, depending on your company’s policies. Common types of reimbursable expenses include:
- Travel Expenses
Whether employees are required to travel occasionally or frequently, they can often claim reimbursement for travel-related costs, such as fuel and train tickets. Accommodation fees such as hotel stays, meals and travel insurance may also be covered depending on company policy.
- Tools and Equipment
Employees often require specific tools or equipment to execute their jobs efficiently and companies will generally cover these costs.
These may include office supplies such as notebooks, folders and paper. For remote or hybrid employees, the cost of home office equipment such as desks, chairs and noise-cancelling headphones may also be reimbursed.
- Training and Development
Investing in employee skill development benefits both the individual and the organisation.
Typical expenses associated with training and development include registration fees for courses and professional growth programs. In some cases, employees may be required to purchase textbooks or specialised software, which are also often eligible for reimbursement.
- Client Meetings
Entertaining clients and business partners is often an essential part of business operations.
Expenses related to taking clients out for meals and drinks are typically reimbursable, as are costs for attending industry events.
Examples of expenses you typically cannot claim for include:
- Your daily lunch or groceries.
- Any unrelated social outings, such as weekend sporting event tickets.
- Personal fines or penalties.
What About Charities?
Staff and volunteers for charities are also eligible to claim staff expenses, provided they adhere to both charity law and tax regulations.
Charities must ensure that all expense claims are legitimate, necessary and have been incurred purely for charitable purposes. Common allowable expenses include travel, accommodation and meals consumed during charity-related work.
At Hartley Fowler, we’re pleased to provide specialist charity accounting services. To find out more, please get in touch with our knowledgeable team today.
Why Are Staff Expense Claim Forms Important?
The accurate filing of staff expense claim forms is important for numerous reasons, including:
- Ensures Accurate Reimbursement: By detailing each staff expense, these forms help ensure all employees are reimbursed accurately for the money they’ve spent. This prevents errors and misunderstandings about what is being claimed.
- Provides Financial Tracking: The form helps organisations keep track of expenses and manage their budgets effectively. By collecting and reviewing expenses regularly, companies can gain insights into spending patterns and make informed financial decisions.
- Maintains Transparency: A standardised form promotes transparency in the reimbursement process. It creates a clear record of what was spent, why and who authorised the payment, reducing the potential for disputes or misunderstandings.
- Encourages Compliance: Many organisations have policies regarding allowable expenses and reimbursement procedures. The claim form helps ensure that employees adhere to these policies and that claims are being processed according to company guidelines.
How to Fill Out a Staff Expense Claim Form
The process of filing an expense claim form generally follows these steps:
- The employee makes a business-related purchase using their own money, such as cash or a personal credit card.
- The employee keeps the receipt. This helps with accurate reporting later down the line.
- The employee completes an expense claim form, which should include key details such as the date, time, location, business purpose of the expense and any related invoices or receipts.
- The employee submits the completed form to their line manager for review and approval. The manager checks the expense aligns with company policy and verifies the provided information.
- Following managerial approval, the claim is then forwarded to the finance team. They will review it for completeness, ensuring all necessary information and approvals are in place. If everything is correct, they will initiate the reimbursement process.
- In line with company policy, the employee is typically reimbursed during the next payroll cycle, or within a specified timeframe.
Choose Our Business Accounting Services
At Hartley Fowler, we’re pleased to offer a comprehensive range of business accounting services, tailored to suit the needs of your business.
For more information on how our experienced accounting professionals can support you, please don’t hesitate to contact us.
Business Accounting services – Wimbledon office: 020 8946 1212
Business Accounting services – Brighton office: 01273 202311
Alternatively, book a free consultation today.
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