The rule of thumb is simple: volunteers should not be out of pocket for costs directly related to their role.

Common Examples of Allowable Expenses:

✔ Travel to and from volunteering (public transport, mileage)
✔ Meals and refreshments during volunteering
✔ Childcare or dependent care costs
✔ Protective clothing or essential equipment
✔ Support worker expenses for disabled volunteers
✔ Postage, phone calls, or other admin costs

Be flexible: People’s needs vary. Volunteers with mobility challenges may need to use taxis. Food costs may differ for those with dietary requirements. Talk to your volunteers and agree what’s fair.

What’s Not Allowed:

✖ Fixed payments or stipends
✖ Regular gifts or vouchers that act as rewards
✖ Payments that go beyond genuine, evidenced expenses

Overstepping these boundaries can result in payments being treated as taxable income. In some cases, it could create an employment relationship, triggering National Insurance, pensions, and other obligations.

A clear, accessible Volunteer Expenses Policy is key. This ensures consistency and makes it easy for volunteers to understand how to claim.

Your policy should cover:
✅ What expenses will be reimbursed (and any limits)
✅ How to claim (simple forms and receipts)
✅ How expenses will be paid (e.g., bank transfer, petty cash)
✅ Timeframes for reimbursement (ideally within one month)

Good Practice Tips:

• Provide claim forms at induction

• Regularly check in to ensure volunteers are claiming what they’re owed

• Be sensitive — some may worry about how expenses affect their benefits

Some organisations have tried to express gratitude with a one-off payment — perhaps £25 as a token of thanks. However, these payments may be considered taxable income.

If payments become expected or regular, the risk increases significantly that a volunteer may be deemed an employee or worker — with all the associated tax and HR responsibilities.

Our advice: Stick to reimbursing genuine expenses. Speak to a professional if you’re considering other payments.

Many charities run internship or volunteer development programmes, often aimed at young adults or graduates. While these can be hugely positive, providing financial support to interns brings risks.

Things to Watch:

• Stipends or help with rent may be seen as taxable income

• If support is regular or performance-based, employment status may apply

• Without proper agreements, your organisation could face tax or HR challenges

If you run these programmes, seek tailored HR and tax advice to stay compliant.

When volunteers move on or reach milestones, congregations or charity members often organise gifts. If these are arranged informally, with funds collected privately, there’s little for the charity to worry about.

However, if the collection runs through the charity’s finances:
✔ Gift Aid cannot be claimed
✔ Records must clearly show the purpose of the funds
✔ If the charity directly provides the gift, tax rules apply

Supporting your volunteers goes beyond saying thank you — it’s about creating a welcoming, fair environment where:

✔ No one is left out of pocket
✔ Recognition is thoughtful, but compliant
✔ Barriers to participation are reduced
✔ Your organisation stays on the right side of tax and employment law

Supporting your volunteers goes beyond saying thank you — it’s about creating a welcoming, fair environment where:

✔ No one is left out of pocket
✔ Recognition is thoughtful, but compliant
✔ Barriers to participation are reduced
✔ Your organisation stays on the right side of tax and employment law

If you'd like to dive deeper into good volunteer management and the rules around expenses, these trusted resources can help:

• NCVO Volunteer Management Guidance

• Expenses and Benefits for Volunteers – GOV.UK

• Volunteering, Tax and National Insurance – NCVO

At Wyatt & Co, we advise charities and churches every day on volunteer expenses, payments, and compliance. If you'd like to chat through your situation, we’d love to help.