WHAT THE GUIDANCE SAYS

Repay the cost,
not the time.

Volunteers running a community tech group often spend their own money on bus fares, petrol, cables and tea.

A cash box, a stack of paper receipts and a notebook on a table in a community hall after a volunteer session — AI-generated image, not a photograph of a real person or place.

Actual costs only
Mileage has a rate
Rewards change status
Simple rules that protect volunteers

GOV.UK says volunteers are not paid for their time but may get money to cover expenses. How a group repays them matters: payments that go beyond real costs can create a tax bill or even make a volunteer count as a worker. This independent guide sets out what GOV.UK and HMRC say.

Updated 19 October 2026

THE SHORT ANSWER

Out of pocket,
back in pocket.

Reimbursing real expenses is normal and not taxed.
Paying more than the cost, or rewarding the time, is where problems start.

WHAT CAN BE REPAID

Food, drink, travel, kit

GOV.UK says volunteer expenses are usually limited to food, drink, travel or any equipment you need to buy. HMRC says reimbursing reasonable out-of-pocket expenses is not liable for Income Tax or National Insurance.

Check a payment

MILEAGE

55p a mile for 2026-27

HMRC's tax-free rate for cars and vans is 55p a mile for the first 10,000 miles in tax year 2026 to 2027, then 25p. Paying at or below the rate means no tax and no need to track actual motoring costs.

See the numbers

STATUS

Rewards can make a worker

A volunteer might be classed as an employee or worker if they get any other payment, reward or benefit in kind, including a promise of paid work in the future.

Four habits

General information only, not legal advice. For advice on your own situation, speak to a qualified lawyer or a free advice service.

A QUICK PAYMENT CHECK

Is this just
an expense?

Pick a type of payment a group might make to a volunteer. The bar shows how likely it is to raise a tax or status question under GOV.UK and HMRC guidance.

General guidance for the UK. It is not legal or financial advice; check GOV.UK or ask HMRC about a particular arrangement.

Volunteer payment check

Choose a paymentRepaying a bus fare or receipted purchaseMileage at or below 55p a mileMileage above the approved rateA set weekly sum not linked to costsA promise of paid work later

Repaying a bus fare or receipted purchaseAn expense

Reimbursing reasonable out-of-pocket expenses for voluntary work is not liable for Income Tax or National Insurance contributions.

Mileage at or below 55p a mileTax-free

For 2026-27, a volunteer who receives 55p a mile or less on their first 10,000 miles will have no tax to pay and need only record miles and allowances.

Mileage above the approved rateMay be taxable

Tax is only charged on allowances that result in a profit. A volunteer can keep records of actual motoring costs and claim those instead.

A set weekly sum not linked to costsStatus risk

Any payment beyond expenses, a reward or benefit in kind could mean the person is classed as an employee or worker, with rights such as the minimum wage.

A promise of paid work laterStatus risk

GOV.UK lists a promise of a contract or paid work in the future among the things that can make someone an employee or worker rather than a volunteer.

Sources: GOV.UK, Volunteer opportunities, rights and expenses; HMRC Employment Income Manual, volunteer drivers' guidance EIM71153 and EIM71155.

TWO NUMBERS WORTH KNOWING

The rate,
and the threshold.

One rate per mile,
one mileage where it changes.

55p a mile

Tax-free rate for the first 10,000 miles

Up from 45p, the rate that applied from tax year 2011 to 2026. Motorcycles stay at 24p and bicycles at 20p a mile.

CARS AND VANS · HMRC 2026-27

10,000

Miles before the lower rate applies

After 10,000 miles in a tax year the car and van rate drops to 25p, because costs such as insurance and vehicle tax do not rise with mileage. Miles for two or more organisations are added together.

THRESHOLD · HMRC

HMRC also lists a passenger payment of 5p per passenger per mile for carrying fellow employees on work journeys; it is set out for employees in the rates table.

An open spiral notebook with ruled columns and a pen beside a few plain bus tickets on a wooden table — AI-generated image, not a photograph of a real person or place.

FOUR HABITS FOR A GROUP

Clear expenses,
happy volunteers.

These are good-practice habits drawn from the guidance. They are not legal or financial advice.

Repay what was actually spent
Ask for receipts or tickets where you can, and repay food, drink, travel or equipment the volunteer needed for the role.
Use the mileage rate
For car journeys, paying at or below HMRC's approved rate keeps it simple: the volunteer only needs to record miles and allowances.
Avoid flat payments and perks
Payments, rewards or benefits that are not expenses can make a volunteer count as a worker, with employment rights.
Check insurance and benefits
GOV.UK suggests volunteers check whether they are covered by the organisation's insurance, and that they can volunteer while claiming benefits if they still meet the conditions.

VOLUNTEERS' RIGHTS

No contract,
different rights.

GOV.UK explains that volunteers do not have a contract of employment, so they do not have the same rights as an employee or worker. There is no upper age limit on volunteering, though some insurance policies do not cover people under 16 or over a certain age.

HMRC says volunteer driving is not employment for National Insurance purposes, and that allowances paid to volunteer drivers generally do no more than reimburse their actual expenses. Tax arises only if the allowances add up to more than the costs, in other words a profit.

A car parked on a quiet village street at dusk, ready for a volunteer's drive home — AI-generated image, not a photograph of a real person or place.

Questions

Questions people ask

Can volunteers be paid expenses?

Yes. GOV.UK says volunteers are not paid for their time but may get money to cover expenses, usually limited to food, drink, travel or any equipment they need to buy.

Are volunteer expenses taxable?

HMRC says reimbursing reasonable out-of-pocket expenses during voluntary work is not liable for Income Tax or National Insurance. Tax is only charged where allowances result in a profit.

What mileage rate can a group pay a volunteer driver?

For tax year 2026 to 2027, HMRC's tax-free rate for cars and vans is 55p a mile for the first 10,000 miles and 25p after that. Paying at or below it means no tax to pay.

Can a flat payment change a volunteer's status?

It can. GOV.UK says a volunteer might be classed as an employee or worker if they get any other payment, reward or benefit in kind, including a promise of paid work in the future.

Does volunteering affect benefits?

GOV.UK says you can volunteer and claim benefits if you continue to meet the conditions of the benefit you get. Check the specific benefit's rules.

Repay the cost,
not the time.