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EthicsLatest NewsHR strategyPay & benefits

False expense claims cost UK employers more than £1bn a year

by Gareth Vorster 18 Feb 2008
by Gareth Vorster 18 Feb 2008

UK employers are losing more than a £1bn annually from false expense claims, representing almost a quarter of the total paid out by companies, latest research has found.

A survey of more than 4.8 million expense sheets by employee expenses service provider, Global Expense, found that fraudulent expense claims account for about £350m, while £671m is paid to to employees for expenses not covered by company policy.

Employee claimed an average of £1,555 last year contributing to an estimated total of £5.8bn. Eight employees shared the highest claim of £24,000 for a week’s training, while the purchase of 20 bibles, haircuts and even betting slip, were some of the slips logged in as expenses.

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David Vine, managing director at GlobalExpense, warned that companies are throwing away money by failing to check claims.

“Not all out-of-policy expenses are phoney – it may be that an employee has overstepped the spending limit by £1 or failed to produce a valid receipt. But this is an area where public figures and working professionals can forget their ethics,” he said.

Gareth Vorster

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