Question 1

How do I bill a client for reimbursable expenses?

Accepted Answer

List each receipt as its own line item with the date, vendor, category, and amount, then group by category at the bottom and show a single grand total. That format gets approved faster than a single 'expenses' line because the client's accounts payable team can match each amount to a receipt without coming back to you with questions. The copy block from this builder follows exactly that pattern.

Question 2

Should I mark up reimbursable expenses?

Accepted Answer

It depends on your contract. Pure pass-through (no markup) is the default expectation for most freelance work — the client pays exactly what you paid. A small markup of 5–15% is acceptable when it's stated upfront and covers your time managing the receipt, the credit card processing fee, or float on your card. Whatever you do, agree on it in writing before you incur the cost.

Question 3

What counts as a reimbursable expense?

Accepted Answer

Anything you paid for on the client's behalf to get their work done: travel and lodging for client meetings, software licenses bought just for their project, stock photos, paid plugins, materials, courier and shipping fees, and mileage for site visits. The test is whether the cost only exists because of their project — your own laptop, internet, and home office don't qualify.

Question 4

Do I have to charge sales tax on reimbursed expenses?

Accepted Answer

In the US, reimbursed expenses are generally not taxable income to you when they're documented and tied to a specific client expense, so they don't get charged sales tax the same way services do. Rules vary by state and country though — VAT, GST, and HST treatments differ. When in doubt, ask your accountant whether to invoice expenses inclusive or exclusive of tax.

Question 5

What mileage rate should I use?

Accepted Answer

In the US, the IRS 2026 business standard mileage rate is 72.5 cents per mile, up from 70 cents in 2025. That's the safe default for billing US clients. UK contractors typically use the HMRC AMAP rate (45p/mile for the first 10,000 miles in a tax year). Canada uses CRA's reasonable per-kilometer allowance. The mileage helper in this builder defaults to the US rate but lets you override it.

Question 6

Should I include receipt copies with the invoice?

Accepted Answer

Many clients require it for amounts over a threshold (often $25 or $75). Even when it's not required, attaching a single PDF of all receipts removes friction. Save scans or photos of every receipt as you go — same-day capture is faster than hunting them down a month later, and it doubles as your tax documentation.

Question 7

Can I bill expenses on a separate invoice or do they have to go on the main one?

Accepted Answer

Either works. A separate expense reimbursement invoice is cleaner when the project fee is fixed and you don't want to muddy the line items. A single combined invoice is simpler when you only have a few receipts. Most freelancers send expenses with the next regular invoice rather than waiting until project close — clients remember approving them more clearly when it's still fresh.

Question 8

What if my contract doesn't mention reimbursable expenses at all?

Accepted Answer

Get written approval before you incur the cost. A short email — 'Heads up, I'm booking the flight to your offsite at $285, please confirm this is reimbursable' — is enough. Without that, you're asking the client to pay for something they never agreed to, and the answer can easily be no. For future projects, add a short reimbursable expenses clause to your standard contract.

Receipt to Invoice Builder

Reimbursement preview