Expenses and benefits in kind to volunteers

It is good practice to reimburse volunteers for expenses they incur while working for your organisation. However, organisations need to exercise caution when it comes to refunds. Paying "expenses" automatically, without justification, can be seen in tribunals as the equivalent of paying a salary.

Charity Commission Briefing CC21 states "Paying includes not only payment in money, but also benefits in kind, such as free (or subsidised) accommodation or the provision of a car".

The safest course is to reimburse only actual expenses, preferably against receipts. Always offer to pay your volunteers' expenses. Create a specific procedure for making reimbursement payments and make certain that everyone knows what it is.

The following are examples of legitimate expenses:

Travel to and from the place of volunteering
Travel undertaken in the course of volunteering
Meals taken during the course of volunteering (usually a single meal up to a certain value per day)
Postage and telephone costs if working from home
Protective clothing or other essential equipment
Childcare expenses

For volunteer drivers, the HM Revenue and Customs sets tax-free mileage rates under the Fixed Profit Car Scheme. This allows organisations to pay drivers a mileage allowance without the need for detailed record-keeping. However, organisations will wish to set up some system of documentation with their volunteer drivers in order to regulate expenses properly.