# Fernway Group: Expenses and Travel Policy

*FICTIONAL PRACTICE MATERIAL. Fernway Group is an invented company and this is not a real policy. The rates and rules below are made up for AI Tools Academy practice and are not tax, legal or HR guidance.*

**Version:** 4
**Effective date:** Thursday 1 October 2026
**Replaces:** Version 3 (effective 1 April 2025)
**Policy owner:** Dan Okafor, Finance
**Review date:** 1 October 2027

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## 1. Purpose and scope

1.1 This policy explains which business expenses Fernway Group will repay, the limits that apply and how to claim.

1.2 It applies to all employees. Contractors and agency staff claim expenses under the terms of their own contract.

1.3 Home-working equipment is covered by the Hybrid and Remote Working Policy, not this policy.

## 2. What has changed from version 3

2.1 **Claims deadline.** Claims must now be submitted within 60 days of the date the expense was incurred. Version 3 allowed 90 days.

2.2 **Alcohol.** Alcohol is no longer repaid as part of meals or subsistence. It is repaid only as part of approved client entertainment under section 9.

2.3 **How to claim.** All claims must be made through the online expenses form. Receipts sent by email are no longer accepted.

2.4 **Hotel limits.** The nightly limits in section 7 have increased: London from £140 to £160, and elsewhere from £95 to £110.

## 3. Moving from version 3 to version 4

3.1 Expenses incurred before 1 October 2026 are covered by the rules in version 3.

3.2 However, any claim for an expense incurred before 1 October 2026 must be submitted by Friday 30 October 2026, even if the 90-day limit in version 3 would have allowed longer. Claims for pre-October expenses received after 30 October 2026 will not be paid.

## 4. General principles

4.1 Only claim costs you have actually paid, wholly for Fernway business.

4.2 Choose the most economical option that is reasonable for the journey or task.

4.3 An itemised receipt is required for every claim over £10.

4.4 If you lose a receipt, you may complete a lost receipt declaration in the expenses form. A declaration can cover a single expense of up to £25, and may be used no more than once in each calendar quarter.

4.5 Your line manager approves your claims. Finance checks every claim before payment.

## 5. Travel by car

5.1 **Mileage in your own car** is repaid at 40p per mile for the first 8,000 business miles in the financial year (April to March), and 25p per mile after that.

5.2 **Commuting** (travel between your home and your usual workplace) cannot be claimed.

5.3 **Field-based staff.** Employees whose contract names their home as their work base may claim all business mileage from home. A journey from home to head office or the Midlands depot counts as business mileage for field-based staff.

5.4 **Mileage records.** Every mileage claim must show the date, the start and end postcodes, the purpose of the journey and, for customer visits, the customer's name. Enter these in the mileage section of the expenses form.

5.5 **Hire cars.** For any single business journey of more than 250 miles in total, book a hire car through the Office Manager, Maya Roberts, instead of using your own car, unless your line manager agrees otherwise in advance.

5.6 **Parking and tolls** are repaid with a receipt. Parking fines, speeding fines and other penalties are never repaid.

## 6. Public transport and taxis

6.1 Rail travel is standard class. First class may be booked only with prior approval from the Head of Operations, Priya Shah, or where it is cheaper than standard class and you keep evidence of both fares.

6.2 Book rail tickets in advance where you can.

6.3 Taxis may be claimed only where:

- there is no reasonable public transport for the journey
- you are travelling after 9pm
- your line manager has agreed taxi use as a reasonable adjustment because of a disability or health condition.

## 7. Overnight stays

7.1 An overnight stay may be booked when a business commitment starts before 9am or finishes after 6pm, and the place is more than two hours' drive from your home or usual workplace.

7.2 Book through the Office Manager where possible.

7.3 The maximum room rate per night, excluding breakfast, is:

| Location | Limit per night |
| --- | --- |
| London | £160 |
| Everywhere else | £110 |

7.4 Breakfast may be claimed up to £12 if it is not included in the room rate.

7.5 **Exception.** You may exceed the nightly limit only with prior written approval from the Head of Operations, where no suitable room is available within the limit (for example during a large event in the area). Keep the approval with your claim.

## 8. Meals and subsistence

8.1 **Day subsistence.** You may claim up to £12 for food and non-alcoholic drink when you are away from your usual work base on business for more than five hours.

8.2 **Field-based staff.** Field-based employees working within their normal sales territory cannot claim day subsistence. They may claim day subsistence under 8.1 when working outside their normal territory for more than five hours.

8.3 **Evening meal.** On an overnight stay you may claim up to £30 for an evening meal. This limit covers food and non-alcoholic drink only.

8.4 Alcohol is not repaid under this section.

## 9. Client entertainment

9.1 Only the Managing Director, the Sales Lead and Account Managers may claim client entertainment.

9.2 Client entertainment must be approved in advance by the Sales Lead, Tom Elliott. The Sales Lead's own client entertainment is approved by the Managing Director, Erin Vaughan.

9.3 The limit is £40 per head, including Fernway staff present.

9.4 Alcohol may be included within the £40 per head limit.

9.5 Record the names of all guests, their organisation and the business purpose in the expenses form.

## 10. Gifts to customers

10.1 Gifts to customers must be approved in advance by the Sales Lead and must not exceed £25 per customer organisation per calendar year.

10.2 Cash and vouchers that can be exchanged for cash must never be given.

## 11. Submitting a claim

11.1 Submit claims through the online expenses form within 60 days of the date the expense was incurred.

11.2 Claims approved by your line manager by the 20th of the month are paid in that month's payroll. Claims approved after the 20th are paid the following month.

11.3 The Finance Assistant, Grace Lynch, may ask for more information before approving payment. Claims are held until the information is provided.

## 12. Late claims

12.1 Claims submitted more than 60 days after the expense was incurred will not be paid.

12.2 The only exception is where Finance (Dan Okafor) agrees there were exceptional circumstances, for example a long period of sickness absence. Ask before submitting.

## 13. Misuse

13.1 Claiming expenses that were not incurred, or were not for business, may be treated as a disciplinary matter under the Disciplinary Policy.

## 14. Questions

14.1 Questions about this policy go to Dan Okafor or Grace Lynch in Finance.

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*This policy is fictional and exists only as AI Tools Academy practice material.*