Where an employee or director pays for travel, meals, and other sundry items from their own pocket, and then wants to claim these back from the company then they should complete an Expenses Claim.

In essence the application treats such claims in much the same way as a supplier invoice and indeed the Expense Claim Id number allocated by the application is in the same sequence as supplier invoices so all can be filed together sequentially.

Such expenses should be wholly business related (see HM Revenue & Customs guidance) and wherever possible supported by a receipt which should be attached to the claim form, and in particular no VAT should be claimed for the expense unless it is supported by a proper VAT receipt (a credit card slip will not suffice).

Payment of the Expense Claim is also processed in much the same way as a supplier payment but using New Employee Payment; there is no problem in paying an expense Claim and Payslip together with the same payment (see also Which Bank Account do I use?).

Where a ‘float’, or ‘cash advance’ has been given to the individual in advance of any claim, for example before making a business trip, then this also needs to be processed through New Employee Payment as an ‘on account’ payment, and this can be netted off against future payments of Expenses Claims or Payslips.