Penny pinching

Spurious expense claims are rife in Britain's businesses so, as Jason Woolfe discovers, it pays for companies to have a clear policy

MPs' recently revealed expenses claims do little for the popular view that politicians are a slippery bunch. Former Conservative Party Chairman Michael Ancram, for example, claimed £22,000 for painting his second home and removing moss from the lawn, and House Speaker Michael Martin claimed £4,000 in taxi fares for his wife.

But new research suggests that MPs aren't the only ones living the high life on other people's money. British workers swindle more than £1bn a year from their employers through outrageous expense claims, including plastic surgery, home improvements and even a hamster called Barry.

Employers' money was also found to have paid for a private investigator to start divorce proceedings, dancing lessons, hair extensions, wallpaper and paint and even a new bathroom.

Widespread practice

As shocking as the sheer cheek of the claims is the extent of the practice. Of 3,000 workers surveyed by Travelodge, 43 per cent said swindling expenses was legitimate and 45 per cent said all their colleagues were doing it.

That's why every business should have a clear expenses policy to make sure employees know what is a valid claim and what is not. Even if you don't believe that your employees would take advantage of the company, it's worth drawing up guidelines and ensuring every staff member is aware of them.

While brokers may not be subject to the same level of scrutiny as MPs, the issue of controlling bogus claims is particularly pertinent as entertaining clients is part of the job. But the research suggests that even companies with a clear expenses policy insisting on itemised receipts could benefit from thoroughly scrutinising claims.

Ask yourself:

• Do all employees know what is and is not a valid claim?
• Is your expenses policy realistic and relevant to the job?
• Have you consulted staff members on the policy?
• Do staff members keep not only receipts, but also information on who, what and why they claimed?

Getting managers' buy-in is particularly important - if they feel the policy is too strict or irrelevant, they may not enforce it. The Travelodge research found that 60 per cent of managers had let team members get away with making a false claim. It also produced figures showing that the typical worker pockets £17 each month that they claim. This comes to an extra £204 a year, or £9,078 over a working lifetime. Can your business absorb that cost?

 

 

 

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