Expense Claim Form

What is an Expense Claim?

An expense claim sets out what an employee spent on the organisation's behalf, itemised with dates, amounts and receipts, and carries an approval block for the manager who authorises reimbursement. It matters at both ends: without a documented claim the employee has no way to get money back, and without one the organisation has no evidence that a payment was a business expense rather than income, which is where tax problems begin.

Employees, contractors, volunteers and directors submit these for travel, accommodation, mileage, client entertainment, subsistence, training, professional subscriptions and small purchases made on a personal card. Finance teams process them, managers approve them and auditors sample them. Charities and grant-funded organisations rely on them heavily, because grant conditions usually require expenditure to be evidenced line by line. Small businesses without a card programme run almost all non-invoice spending through claims, which makes the form the main control over where the money went.

Tax treatment is jurisdictional and it matters. HMRC has rules on allowable expenses, benefits in kind and approved mileage rates in the UK; the IRS distinguishes accountable and non-accountable plans in the US, with substantiation requirements attached; the ATO in Australia, the CRA in Canada and the Income-tax Department in India each set their own rules on what may be reimbursed free of tax and what evidence is required. Mileage rates, per diem limits and receipt thresholds change, so check the current published figures before setting a policy rate.

The form is a claim, not an entitlement or a decision. What is reimbursable is set by the organisation's expense policy and the employment terms; submitting an expense does not make it approved, and approving it does not make it tax-free. It is also not a substitute for a purchase order or supplier invoice — significant spend usually belongs in procurement, not on a personal card. And where a claim relates to a grant or a client rebill, the funder's or client's own evidence rules sit on top of yours.

What to put in an Expense Claim

These are the details this template asks for. Anything left blank is marked in red on the preview so you can see what is still missing.

How to write an Expense Claim

1. Identify the claimant, period and payment route

   Name, employee or supplier number, department, cost centre, the period covered and the bank account for reimbursement. Where the organisation runs multiple entities, projects or grants, state which one bears the cost. Getting the coding right at submission is far cheaper than a journal to move it later, and grant-funded costs coded to the wrong project cause problems at the funder's audit.

2. Itemise every line with date and purpose

   One line per expense: date, supplier, description, amount, currency and the business purpose. Purpose is the field people skip and auditors read. Lunch is not a purpose; Lunch with two directors of a named client during contract negotiation is. For entertainment, name the people present and their organisation, because most tax regimes treat client entertainment differently from staff subsistence.

3. Attach receipts and record mileage properly

   Attach an itemised receipt, not just a card slip, for every line above the policy threshold. For mileage, record the date, start and end points, purpose and total miles or kilometres, and apply the rate your policy sets — check the published rate for your country, since these are revised and an over-payment can create a taxable benefit. Note any missing receipt and why, rather than leaving a gap.

4. Convert foreign currency on a stated basis

   For overseas spending, record the original currency and amount, the rate used and its source — card statement rate, published daily rate, or the organisation's policy rate — and the converted figure. Applying whatever rate the internet showed on the day of submission produces small discrepancies on every line that add up and that nobody can reconcile to the card statement six weeks later.

5. Route it for approval and keep the records

   Send to the approver named in the policy, who should be checking business purpose and budget rather than adding a signature. Claims by directors or by the approver themselves need someone else to authorise. Retain the claim and receipts for the period your tax authority requires — the retention period differs by country — and keep grant-funded claims for whatever longer period the funder specifies.

Common mistakes

• Leaving the business purpose blank, which makes the claim indefensible in an audit and can turn a reimbursement into taxable pay.
• Submitting a card slip instead of an itemised receipt, so there is no evidence of what was actually bought and whether it was allowable.
• Claiming mileage at a rate that has not been checked against the current published figure, creating either an under-payment or a taxable benefit.
• Approving one's own claim, or having a subordinate approve a manager's, which removes the only real control in the process.
• Coding costs to the wrong project or grant, then having the expenditure challenged when the funder audits the claim months later.

Frequently asked questions

This page explains general practice and is not legal advice. Requirements differ between countries and, in some cases, between states — check what applies where the document will be used.

Related templates

All templates · Finance templates