For all methods of reimbursement of expenses, the charity must also operate a checking system, where it maintains records of the expenses and ensures that employees are not reimbursed beyond the costs actually incurred.

The extent of the checking system depends on the scale of the business, but HMRC will expect the charity to demonstrate that someone other than the employee incurring the expense is responsible for ensuring that the payment is a qualifying business expense and is not excessive.

HMRC’s guidance on checking systems can be accessed here.