Employee Expenses Reimbursement Calculator

HMRC allows tax-free reimbursement for: business mileage at approved rates, reasonable subsistence (meals when away from base for 5+ hours), accommodation for overnight business travel, business phone calls, professional subscriptions, and work-related training.

HMRC benchmark rates (2026): Away from base 5+ hours: £5 meal allowance. Away 10+ hours: £10. Overnight stay: £25 (including evening meal). These are benchmarks — you can reimburse actual costs with receipts. These rates can be used without individual receipts if using HMRC's salary advance system.

There is no statutory overnight rate for private accommodation. HMRC's benchmark for using the 'scale rate payments' system (without receipts) is £25 per night for England/Wales. Actual reasonable hotel costs are reimbursed with receipts, with no specific cap.

Employees who work from home can receive up to £6/week (£312/year) from their employer tax-free. Alternatively, employees can claim Working From Home tax relief via HMRC directly — £6/week at basic rate saves £62.40/year.

P87 (Claim for Tax Relief for Job Expenses) is submitted to HMRC when you want to claim relief for expenses your employer hasn't reimbursed. Use it for: mileage above employer rate, professional subscriptions, uniform/protective clothing, working from home allowance.

For HMRC benchmark subsistence rates, employers can use scale rate payments without individual receipts (requires a checking system and HMRC approval). For mileage, a log is required. For accommodation and other costs, receipts are normally required.

Subscriptions to HMRC-approved professional bodies (chartered accountants, lawyers, engineers, medical professionals etc.) are reimbursable tax-free. HMRC publishes a list of approved bodies. Annual subscription costs are commonly £100–£600 for professional memberships.

If you work at the same temporary workplace for more than 24 months (or it becomes your permanent workplace), travel and subsistence to that location is no longer tax-deductible. Review arrangements at 18 months to plan ahead.

No — ordinary commuting between your home and regular workplace is not a business expense. Exceptions: travelling to a temporary workplace for limited periods, client visits that require going past your normal workplace route, or if home is your designated place of work.

Pre-2016, employers needed HMRC dispensation to reimburse expenses without P11D reporting. This was replaced by the Approved Amount scheme — expenses within HMRC approved rates don't need reporting on P11Ds. More flexible but requires employer compliance.

Yes — director expenses follow the same rules as employees. Business expenses can be reimbursed tax-free. Keep meticulous records. Common mistakes: treating personal meals as business subsistence, mixing personal and company cards, or claiming mileage without a log.

Any reimbursement above HMRC approved rates is a benefit-in-kind (BIK) and taxable. The employer must report excess on P11D and pay Class 1A employer NI (15%). The employee pays income tax via PAYE/Self Assessment.