Expenses and Vehicle Policy Templates
These Expenses and Vehicle Policy templates help UK employers manage business travel, subsistence, company vehicles and private car allowances in a clear, compliant and cost-controlled way. They support good financial governance, HMRC compliance on mileage and benefits, and robust controls against fraud and bribery (including Bribery Act 2010 risks).
This selection brings together three related templates:
Employee Expenses Policy
The Employee Expenses Policy sets out what counts as a legitimate business expense (such as (travel, accommodation, subsistence, entertainment, training, professional fees, business use of personal phones/equipment), how employees can claim, and the controls the organisation uses to prevent abuse, fraud and bribery.
Typical Use:
Any employer wanting a clear, HMRC aligned and Bribery Act aware expenses framework.
Company Car Policy
The Company Car Policy sets out the terms on which a company car is provided as part of an employee’s remuneration and benefits package, and the conditions for its business and private use. It covers eligibility and entitlement; choosing and renewing the car; running costs and responsibilities; private use and additional drivers; accidents, offences and loss of licence; and end of employment.
Typical Use:
Employers providing company cars as part of the benefits package.
Private Car Allowance Policy
The Private Car Allowance Policy provides a cash alternative to a company car for eligible employees, with strict conditions to ensure that vehicles used on company business are suitable, safe and properly insured. It covers purpose and eligibility; insurance and vehicle standards; and mileage, expenses and conditions.
Typical Use:
Employers preferring a car allowance model over fleet vehicles, or offering both options.
Employers can use them individually or as a coordinated suite to cover all aspects of employee expenses and vehicle use. Together, these templates provide an integrated, UK-focused set of expenses and vehicle policies that help businesses manage costs, protect staff, meet legal and tax obligations, and reduce the risks associated with business travel and vehicle use.
Please click on the links below for full details of these templates and to download:
Expenses and Vehicle Policy Templates is part of Employment. Just £38.50 + VAT provides unlimited downloads from Employment for 1 year.
Frequently Asked Questions
Which of these three templates do I need: an expenses policy, a company car policy or a car allowance policy? +
Your choice depends on how your business handles travel costs. Use the Employee Expenses Policy for all business spending claims such as travel, accommodation, subsistence, entertainment and professional fees, giving a clear, HMRC-aligned and Bribery Act 2010 aware framework. Use the Company Car Policy if you provide vehicles as part of the benefits package, and the Private Car Allowance Policy if you pay a cash allowance instead of, or alongside, a company car. You can use all three together as a coordinated suite or download whichever applies.
My employees use their own cars for work. What mileage rate must I use when reimbursing them? +
No law fixes a particular rate, but paying up to the HMRC Approved Mileage Allowance Payment (AMAP) rate keeps it tax-free and unreportable. From 6 April 2026 the approved rate for cars and vans is 55p per mile for the first 10,000 business miles in a tax year, then 25p above that. Pay more and the excess is reportable and taxable; pay less and the employee may claim Mileage Allowance Relief on the shortfall. The Employee Expenses Policy and Private Car Allowance Policy templates can be tailored to reference these rates.
We want to give staff company cars. What tax do we need to know about as the employer? +
A company car available for private use is a benefit in kind, so you must report it to HMRC and pay Class 1A National Insurance contributions on the calculated BiK value, while the employee pays income tax on the same value. The BiK percentage depends on the car's CO2 emissions, list price and fuel type: lower-emission cars attract a lower percentage, so for 2026/27 fully electric cars have a 4% rate while higher-emission petrol and diesel cars can reach the 37% maximum. Report using a P11D form or by payrolling, with payrolling becoming mandatory from 6 April 2027. The Simply-Docs Company Car Policy sets out the conditions, responsibilities and end-of-employment provisions you need alongside the tax framework.
We pay staff a monthly car allowance rather than providing a company vehicle. How is that taxed and what policy do we need? +
A cash car allowance is treated as additional salary, subject to income tax and National Insurance for both employee and employer, with no benefit-in-kind calculation on the allowance itself. Employees using their own car for business travel can still claim Approved Mileage Allowance Payments at the HMRC-approved rate (currently 55p per mile for the first 10,000 business miles in the 2026/27 tax year) on top. You must also ensure vehicles used on company business are roadworthy and adequately insured for business use. The Simply-Docs Private Car Allowance Policy covers eligibility, insurance requirements, vehicle standards, mileage and expenses conditions and the cash alternative to a company car scheme.
How does an expenses policy help protect us against Bribery Act 2010 risks? +
An expenses policy with clear entertainment limits, approval thresholds and explicit links to anti-bribery and hospitality policies demonstrates the reasonable, proportionate, genuine business purpose governance the Bribery Act 2010 expects, giving you a documented, enforceable framework. This matters because a commercial organisation can be liable where an associated person commits bribery, including improper payments disguised as expenses. The Simply-Docs Employee Expenses Policy has Bribery Act 2010 awareness built in and ties hospitality spending to the organisation's Hospitality and Gifts Policy and Anti-Bribery Policy.
Can I use just one of these policy templates, or do I need all three? +
You can use any of the three templates individually. The Employee Expenses Policy stands alone for any employer who wants a structured framework for claiming and approving business expenses. The Company Car Policy and Private Car Allowance Policy are each self-contained for the vehicle arrangement they cover. If you provide both a company car scheme and a cash alternative, using all three together gives you an integrated, consistent set of policies with no gaps. Simply-Docs makes each template available for separate download, so you pay only for what you need.
