Employees ‘over claiming’ on mileage

Over a third of employees making false expense claims

Business owners have been urged to stay alert, as a new report revealed employees ‘can’t be trusted’ when it comes to claiming mileage expenses.

Software Europe, the report’s authors, said the problem is so large it affects ‘every business and government agency in the UK’, with around 35% of employees admitting to making exaggerated claims.

Mileage makes up around half the total amount claimed through employee expenses, said the company, and provides the biggest opportunity to falsify claims.

Explanations for fraudulent claims ranged from employees feeling they were underpaid to wanting compensation for getting home late, with 90% of those who made false claims adding that they ‘get away with it’.

Tracey Turton, a marketing executive for the company, said they had found details of one government employee who was consistently over-claiming her mileage by 25%.

“The shocking thing was that, because this involved only taxpayers’ money, neither line managers nor accounts staff had any appetite to tackle the problem.

She advised business owners to have clear procedures to oversee their expense system.

“A percentage of all employees will exaggerate their expense claims if the system they use is not clear and if employers have no process in place to police it,” she said.

© Crimson Business Ltd. 2008

 

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