Can Volunteers Claim Travel Expenses? Myths, Realities, & All You Need To Know About Volunteer Travel Expenses

Travel expenses are a key consideration for businesses and charitable organisations alike. For employees, the process of claiming expenses is generally straightforward, often involving policies that allow for reimbursement of valid travel costs incurred for work purposes. But when it comes to volunteers, the waters can get… cloudier.

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Voluntary work forms the backbone of many charitable and voluntary organisations, with volunteers contributing their time and energy to drive meaningful causes. According to official statistics, 7 million people in the UK volunteer in some capacity every year; globally, every seventh person in the world is a volunteer, according to the United Nations.

But can volunteers claim travel expenses? And if so, how should they do it?

Today, we’ll explore the myths, realities, and best practices for managing volunteer travel expense claims. Let’s dive in—and don’t forget, ExpenseOnDemand can help streamline your expense management process. Contact us today to learn more!

Can volunteers claim travel expenses? The short answer...

Yes, volunteers can claim travel and subsistence expenses incurred while performing duties for a charity or voluntary organisation.

These claims typically cover actual costs like public transport fares or mileage. Reimbursements ensure that volunteers aren’t left out of pocket while contributing their time and effort.

...and the longer one

Volunteer travel expenses are treated differently from employee expenses. While employees claim expenses as part of their employment rights, volunteers are reimbursed only for actual expenses they’ve incurred.

This distinction is essential to avoid reimbursements being classified as taxable income, which could create liabilities for the organisation.

Reimbursing volunteer travel expense claims is not only practical but also important for inclusivity.

Covering costs like petrol, train fares, or parking removes financial barriers that might deter potential volunteers. However, it’s vital to ensure that all claims are supported by valid receipts or mileage logs, aligning with tax and organisational compliance requirements.

For businesses, establishing clear policies around paying volunteer travel expenses is key to creating a fair, consistent, and transparent system.

What forms of transport can volunteers claim travel expenses for?

Volunteers can claim valid travel expenses incurred while performing their duties, provided the travel aligns with the needs of the voluntary organisation. Valid volunteer travel expenses include:

- Public transport: Costs for buses, trains, or trams can be reimbursed as long as they are directly related to the voluntary work. For example, if a volunteer travels by train to deliver food parcels for a charity, those costs can qualify for reimbursement.

- Mileage: Volunteers using their own vehicles can claim mileage rates. In the UK, this is often calculated based on HMRC’s approved mileage rates, such as 45p per mile for cars.

- Cycling or walking expenses: In some cases, voluntary organizations may offer allowances for cyclists or walkers.

Examples:

- Scenario 1: A volunteer drives to a local community center to assist in events. They can claim petrol costs based on approved mileage rates.

- Scenario 2: A volunteer uses public transport to travel to a fundraising event. Their bus ticket can be reimbursed as a valid out-of-pocket expense.

Mileage and costs: things to remember

When claiming mileage as part of a volunteer expense claim, there are some key considerations:

1. Keep Records

Volunteers should log miles traveled, dates, and destinations to ensure accurate reimbursements.

2. Approval Rates

In the UK, reimbursements above the approved mileage rates maybe treated as taxable income.

3. Carpooling Benefits

If multiple volunteers travel together, organisations can encourage shared rides to minimise costs and environmental impact.

Best practices for paying volunteer travel expenses 

Paying volunteer expenses effectively requires clear processes. Here are some best practices:

- Define a policy: Outline what constitutes suitable volunteer expenses and how claims should be submitted.

- Ensure compliance: Adhere to local tax regulations, ensuring reimbursed expenses do not count as taxable income.

- Provide guidance: Offer volunteers templates or digital tools for tracking expenses.

OK, so what other expenses can volunteers claim?

Beyond travel, volunteers may claim other valid volunteer expenses that arise directly from their work. These include:

- Meals and refreshments: If volunteers work long hours or during meal times, reasonable food costs can be reimbursed.

- Uniforms or protective gear: Expenses for clothing or safety equipment required for voluntary work may qualify.

- Supplies: Materials used for voluntary tasks, such as stationery or cleaning products, can be reimbursed.

- Training costs: If volunteers must attend specific courses to perform their roles, these costs may be covered by the organisation.

Important note:

Reimbursed volunteer expenses must be for actual expenditure.

Payments that exceed the cost incurred may be considered taxable income, leading to financial obligations for the organisation.

How to reimburse volunteer travel expenses

Happily, reimbursing expenses for volunteers involves a few straightforward steps:

1. Submit Claims

Volunteers should provide receipts or records, including travel tickets or mileage logs.

2. Review and Approve

Verify that the claims align with the organisation’s policies.

3. Process Payments

Use direct bank transfers or digital payment systems to reimburse costs promptly.

Using an automated expense management tool like ExpenseOnDemand simplifies this process, ensuring efficiency and accuracy.

Do businesses have a moral obligation?

While there’s no legal requirement to reimburse volunteer expenses, many charity organisations and businesses recognise the ethical imperative of supporting potential volunteers. Covering costs ensures no one is discouraged from contributing due to financial barriers.

That said, businesses must balance this with practical concerns, such as financial limitations and the need to distinguish voluntary work from paid work to avoid employment liabilities.

Supporting volunteer expenses reflects positively on a business’s values and community impact, but decisions should always be guided by organisational capacity.

What about employees? Is the situation different?

Yes, the situation is different.

Employees are entitled to claim business expenses, and reimbursements are treated as part of their contractual obligations. Employers must ensure accurate bookkeeping to avoid tax and National Insurance liabilities.

Volunteers, however, operate outside employment contracts. Reimbursed expenses are not treated as income, provided they represent actual costs.

How automated expense management helps you simplify, control, and grow

Managing volunteer expense claims manually can be time-consuming and prone to error. Automated tools like ExpenseOnDemand streamline the process by:

- Tracking expenditure in real time

- Simplifying expense approvals through digital workflows

- Ensuring compliance with tax regulations

- Offering custom reports for enhanced visibility

With automated systems, both businesses and voluntary organisations can focus on their core missions while minimising administrative overhead.

The last word

Volunteers play an invaluable role in supporting communities, and reimbursing their travel expenses is one way organisations can show appreciation and eliminate barriers to participation. Whether for charity travel expenses or other costs, ensuring a smooth and compliant reimbursement process is crucial.

ExpenseOnDemand simplifies managing employee and volunteer expenses, making it easier to focus on growth and impact.

Start your free trial today to see how our platform can transform your expense management processes!

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