HR · 2 August 2017

Eight unusual employee expense claims contributing to a 1.6bn economic black hole

blue selective focus image of till receipts
40 per cent of workers overcharged on expenses after feeling underpaid
UK business owners have been warned to take a tougher stance on unrealistic employee expense claims, as new research reveals a majority frequently overcharge at the end of the month.

In a study of 1, 000 working professionals across Britain, by Allstar Business Solutions, almost three-quarters of respondents said they spent up to 100 every month on business expenses. However, a majority admitted to overcharging their employer by ten per cent at the end of the month.

Meanwhile, a quarter of workers said they charged their boss an extra 20 per cent each time an expense claim was submitted.

Despite the illegality of incorrect claims, over four in ten believed they werent doing anything wrong.

Overall, the culture of overclaiming on business expenses could be costing the economy 1.6bn every year in lost revenue, the research suggested.

For 40 per cent of respondents, a feeling of being underpaid was the driving factor. However, over a third saidthey were claiming fairly having lost previous receipts.

Perhaps most worryingly for employers, a third believedthey were just followingtypical practices around their company.

Commenting on the research, Paul Baker, vice president of customer management at Allstar Business Solutions, said the ‘shocking findings? were a big problem? for business owners.

not only is it costing individual companies, it is also having a much bigger impact on our wider economy as a whole and people don’t seem to care that it is both dishonest and illegal, he added.

Eight unusual employee expense claims received by employers

  1. Flowers
  2. Alcohol for personal use
  3. Haircuts
  4. Home improvements
  5. Personal groceries
  6. Personal parking fines
  7. Meals which werent business related
  8. Hotel breaks with the family

 
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ABOUT THE EXPERT

Praseeda Nair is the editorial director of Business Advice, and its sister publication for growing businesses, Real Business. She's an impassioned advocate for women in leadership, and likes to profile business owners, advisors and experts in the field of entrepreneurship and management.

HR & Employment