TABLE OF CONTENTS
This article outlines the policies and procedures for travel, mileage, invoicing, and reimbursement of business expenses for employees based in the United Kingdom.
Invoicing and Documentation
Invoices are required for larger items or when specified. They must include:
Company name
Tax ID
When relevant, list Remote People as the purchasing entity:
Remote People Global Technology UK Limited
Address: BDO LLP, First Floor North, Bottle Works, The Barrs, Guildford, Surrey, GU1 4LP
Note: There is no statutory invoice threshold under UK law; requirements depend on company policy or materiality.
Reimbursement and Taxability
The following are typically non-taxable when properly documented:
Business mileage (within AMAP limits)
Standard travel costs (transport, parking, lodging)
Meals/subsistence within HMRC allowances
Per Diem Rates
Meal allowances for business travel within the UK are based on the length of the journey. These allowances are designed to cover the cost of meals during extended business trips and should be claimed accordingly.
The following rates apply:
Travel Duration | Allowance |
One meal (≥ 5 hours) | Up to £5 |
Two meals (≥ 10 hours) | Up to £10 |
Late evening meal (after 8 PM) | Up to £15 |
24-hour period (all meals) | Up to £25 |
Incidental overnight expenses | £5/night (UK), £10/night (abroad) |
Restrictions on Per Diem Claims
Employees cannot claim per diem allowances in the following situations:
No meal or beverage is purchased.
The meal does not constitute additional expenditure.
The "staying with friends or relatives allowance" is claimed (in which case, the 24-hour claim is not allowed).
Meals are taken at home.
Meals are provided during a training course, conference, or similar activity.
Meals are included in the ticket cost for travel by train or plane.
Alcohol cannot form part of any claim.
Entertainment and Gifts
Must be justified.
Taxable if not directly business-related.
Subject to company policy limits.
Health and Wellness
Generally not reimbursable unless:
Directly related to health and safety
Covered by a company health plan
Examples of non-reimbursable items:
Gym memberships
Yoga classes
Similar personal wellness activities
VAT
VAT is reclaimable if:
Properly invoiced
Expense is business-related
Travel and Mileage
Mileage Rates
Vehicle Type | Rate |
Cars & Vans | £0.45/mile (first 10,000 miles), £0.25/mile thereafter |
Motorcycles | £0.24/mile (no threshold) |
Bicycles | £0.20/mile (no limit) |
Mileage claims must not exceed HMRC‑approved rates to remain tax‑free.
Employees must keep a detailed mileage log to support their claims. This should include:
Date of travel
Start and end postcodes
Purpose of the journey
Total business miles travelled
Accurate record‑keeping is essential, as commuting between home and a permanent workplace is not classed as business travel.
Company Car Business Mileage
Business miles driven in a company car are reimbursed using HMRC Advisory Fuel Rates (AFR) rather than the AMAP rates above.
AFRs vary by engine size and fuel type and are updated quarterly by HMRC.
These rates are intended to reimburse the fuel or electricity cost only, not vehicle wear and tear.
Electric Vehicles (EVs):
As of March 2025, the HMRC advisory rate for fully electric company cars is 5 pence per mile.
To avoid tax charges:
Employees must keep accurate logs showing date, destination, purpose, and mileage.
Only genuine business journeys qualify for tax‑free reimbursement.
If the employer pays for private fuel, a fuel benefit tax charge will usually apply.
Any private miles reimbursed by the company are treated as a taxable benefit.
Passenger Payments
When carrying colleagues on a business journey in a car or van, employees may claim:
Up to 5p per mile per passenger (tax‑free)
This applies only to business travel and must be supported by mileage records.
Parking and Tolls
Parking fees and tolls must be submitted as separate expense items
Receipts are required
These costs should not be included in mileage claims
Business Travel Rules
There is no statutory cap on business travel expenses.
Reimbursement must stay within HMRC‑approved rates to qualify for tax‑free treatment.
Transport Services (Non‑Mileage Travel)
Applies to:
Air
Bus
Train
Tram
Taxis
Rental cars
Requirements:
Valid receipts
Prior approval (where applicable)
Travel should be booked at the lowest practical fare or class (e.g. economy or standard)
First‑class travel is permitted only with clear business justification.