Purpose
This policy sets out the rules for claiming and approving business expenses incurred by EXG employees in the course of their work. EXG will reimburse reasonable, legitimate business expenses when they have been properly authorised and evidenced.
All expenses must represent genuine business expenditure, be reasonable in cost, and comply with HMRC rules to be tax-deductible.
Who This Applies To
All EXG employees and contractors who incur expenses on behalf of the business. Contractors should confirm expense arrangements with their line manager before incurring costs, as these may be governed by their contract terms.
Eligible Expenses
Travel
| Type | Policy |
|---|---|
| Rail (UK) | Standard class. First class requires Director approval. |
| Air travel (short-haul, <4 hrs) | Economy class. Business class requires Director approval. |
| Air travel (long-haul, >4 hrs) | Business class permitted with Director approval. |
| Taxis / rideshare | Permitted where public transport is impractical or unsafe. |
| Personal vehicle (mileage) | Reimbursed at HMRC approved mileage rate (currently 45p/mile for first 10,000 miles, 25p/mile thereafter). |
| Hire car | Economy category. Requires line manager approval in advance. |
| Parking & tolls | Claimable with receipts. |
Book travel in advance where possible to minimise cost.
Accommodation
| Type | Policy |
|---|---|
| Hotels (UK) | Up to £150/night (London), £120/night (elsewhere). Exceptions require Director approval. |
| Hotels (international) | Reasonable rate for the city; Director approval for stays above £200/night. |
| Airbnb / serviced apartments | Permitted for stays of 3+ nights where cost-effective. |
Meals & Subsistence
| Scenario | Limit |
|---|---|
| Lunch (away from office, travel day) | Up to £15 |
| Evening meal (overnight stay required) | Up to £35 |
| Client / partner entertaining | Up to £75/head — requires pre-approval from a Director and clear business purpose documented |
| Team meals (EXG-organised) | Pre-approved budget; organised through management |
Alcohol is claimable as part of a client meal but excessive alcohol spend will not be reimbursed.
Equipment & Supplies
Minor work-related purchases (cables, stationery, printer ink) up to £50 can be claimed without pre-approval. Purchases over £50 require line manager approval in advance.
Hardware (laptops, monitors, peripherals) must be purchased through EXG procurement via IT/Xenace — not via personal expense claim.
Training & Professional Development
Training costs require pre-approval from your line manager before booking. Approved training is reimbursed in full with receipts.
Other
- Subscriptions & software: Pre-approval required. Must be for business use only and not duplicating existing EXG-provided tools.
- Gifts to clients/partners: Up to £50 per person per year. Must not be cash or cash-equivalent. Subject to Anti-Bribery Policy guidelines.
- Charitable donations: Not reimbursable.
- Fines & penalties: Not reimbursable (parking fines, speeding, etc.).
- Personal items: Not reimbursable.
- Alcohol purchased alone (not with a meal): Not reimbursable.
Approval & Claim Process
- Incur the expense — only spend what you need and keep all receipts (paper or digital photo)
- Submit your claim — submit via the Xero Expenses module within 30 days of incurring the expense. Late claims (>60 days) may not be reimbursed.
- Attach receipts — all claims over £10 require a receipt. Card statements alone are not sufficient.
- Line manager approval — your line manager approves claims up to £500
- Director approval — claims over £500, or any entertainment/hospitality, require a Director to approve
- Payment — approved expenses are reimbursed via payroll or BACS within 30 days of approval
Foreign Currency
Expenses incurred in foreign currency should be converted to GBP at the exchange rate on the date of expenditure (use your bank/card statement rate). Note the original currency and amount on your claim.
Company Cards
Where EXG issues a company credit or debit card, it must be used only for legitimate business expenditure. All transactions must be reconciled monthly with receipts and submitted to Finance. Personal use of a company card is a disciplinary matter.
HMRC Compliance
EXG reports employee expenses in line with HMRC requirements. Benefits-in-kind that exceed HMRC exemption thresholds (e.g. entertainment over the trivial benefits limit) may be reported on a P11D. Staff will be notified if any expense gives rise to a personal tax liability.
Responsibilities
| Role | Responsibility |
|---|---|
| Employee | Submit accurate, timely claims with receipts; only claim legitimate business expenses |
| Line manager | Review and approve claims within their limit; query anything that appears unreasonable |
| Finance (Emma Linnell) | Process approved claims; flag policy breaches; maintain records for HMRC compliance |
| Directors | Approve high-value or entertainment claims |
Review Schedule
This policy is reviewed annually.
Next review due: March 2027
