What Expenses Can Trustees Claim Back?

Introduction

Charity trustees play an essential role in overseeing how a charity is run, ensuring funds are used properly and its objectives are met. Most trustees volunteer their time, which means they are not paid for their work. However, they can reclaim certain expenses they incur while carrying out their official duties.

Understanding what trustees can and cannot claim is vital for maintaining transparency, complying with charity law, and protecting public trust. This article explains what types of expenses trustees can claim back, how claims should be handled, and what to avoid.

The General Rule

Under UK charity law, trustees cannot receive payment for their role as trustees unless the charity’s governing document or the Charity Commission specifically allows it. However, trustees can reclaim legitimate expenses that are directly related to their work for the charity.

The key rule is that the expense must be necessary, reasonable, and only incurred while carrying out trustee duties. These reimbursements are not considered payment or benefits, so they do not breach charity regulations.

Common Expenses Trustees Can Claim

1. Travel and Transport Costs

Trustees can claim back reasonable travel costs when attending board meetings, site visits, or charity events. This can include:

• Train, bus, or taxi fares

• Mileage for using a personal car (at HMRC’s approved rate of 45p per mile for the first 10,000 miles)

• Parking fees and tolls

If public transport is available, trustees should use the most economical option.

2. Accommodation and Meals

If a trustee needs to stay overnight while on charity business, they can reclaim the cost of accommodation and reasonable meal expenses. Receipts should always be kept, and claims should reflect actual costs rather than daily allowances.

3. Telephone, Internet, and Postage

Trustees who use their own phone, internet connection, or postal services for charity work can claim back the proportion of costs that relate to official activities. For example, phone calls made to other trustees, funders, or beneficiaries.

4. Stationery, Printing, and Office Supplies

If a trustee buys stationery, printing materials, or small office items for charity use, they can reclaim these costs. However, large purchases such as computers or equipment should usually be bought directly by the charity to avoid confusion over ownership.

5. Childcare or Carer Costs

Trustees who need childcare or carer support to attend meetings or training can claim reasonable costs. This ensures that personal circumstances do not prevent someone from fulfilling their trustee duties, promoting inclusivity on the board.

6. Training and Development

When a charity requires trustees to attend training events, conferences, or seminars relevant to their role, the cost of attendance, travel, and materials can be reimbursed. These activities must directly benefit the charity’s governance or performance.

7. Professional Fees and Subscriptions

If trustees are required to pay professional membership fees or licences to carry out their trustee duties (for example, health and safety training), they can claim these costs. However, this does not include general professional subscriptions unrelated to the charity.

Expenses Trustees Cannot Claim

Trustees must never claim or be reimbursed for:

• Personal gifts or entertainment

• Costs unrelated to charity business

• Fines, penalties, or parking tickets

• Expenses already covered by the charity in another form

• Payments for time spent on trustee duties (unless explicitly allowed in the governing document)

Claiming unauthorised expenses can be considered a breach of charity law and could lead to Charity Commission investigation or repayment.

Keeping Expense Policies Clear

Every charity should have a trustee expenses policy that sets out:

• Which expenses are covered and at what rates

• How claims should be made and authorised

• What documentation is required (such as receipts or mileage logs)

• How often claims should be submitted

This policy ensures fairness, consistency, and accountability. Trustees should approve the policy collectively and review it regularly.

How Trustees Should Claim Expenses

1. Keep receipts and records: Trustees must retain receipts or invoices for every expense claimed. For mileage, a record of journeys should be maintained.

2. Submit claims promptly: Claims should be made soon after the expense is incurred, usually within one month.

3. Use claim forms: A simple expense claim form should be completed for each claim, detailing the date, purpose, and amount.

4. Authorisation: Claims should be reviewed and approved by someone independent, ideally another trustee or the treasurer, to avoid conflicts of interest.

5. Reimbursement: Payment should be made by bank transfer where possible, not cash, to maintain clear financial records.

Example Scenario

Imagine Sarah, a trustee of a local education charity, travels to London to attend a national conference on youth development. She pays £70 for a return train ticket and £20 for lunch during the event. After returning home, she submits an expense claim form with her receipts attached. The treasurer reviews and approves the claim, and the charity reimburses her £90.

This is a legitimate claim because the expenses were necessary, reasonable, and directly related to her role as a trustee.

By contrast, if Sarah bought a personal gift during her trip or upgraded her train ticket to first class for comfort, those extra costs would not be claimable.

Why Expense Reimbursement Matters

Reimbursing trustee expenses fairly ensures that no one is excluded from becoming a trustee due to financial constraints. Trustees should never be left out of pocket for fulfilling their responsibilities.

It also promotes diversity and inclusion by making board roles accessible to people from all backgrounds, not just those who can afford to volunteer without support.

The Role of an Accountant

An accountant can help charities manage trustee expenses by:

• Setting up clear reimbursement systems

• Reviewing expense claims for compliance

• Ensuring claims are correctly recorded in the accounts

• Advising on tax implications and HMRC mileage rates

• Helping trustees update the charity’s expense policy

This professional oversight helps prevent disputes and ensures all claims are handled transparently and legally.

Common Mistakes to Avoid

• Failing to keep receipts or detailed records

• Paying trustees for their time rather than reimbursing expenses

• Ignoring approval procedures

• Claiming excessive or personal expenses

• Having no written expenses policy

Avoiding these mistakes protects the charity’s reputation and prevents regulatory issues.

Conclusion

Trustees can claim back reasonable, necessary expenses they incur while performing their charity duties. This includes travel, accommodation, childcare, and other costs directly linked to their work. However, trustees must never profit personally or claim for unrelated expenses.

A clear expenses policy, proper record keeping, and independent authorisation are essential for transparency. Working with an accountant can ensure that all claims are processed correctly and that the charity remains compliant with Charity Commission and HMRC guidance.