Two thirds of firms uncover bogus expense claims, survey shows

Published on Saturday 4 July 2009 14:41

FIRST it was MPs who came under pressure for their questionable expenses, then it was senior directors at the BBC. Now private firms in Scotland plan to launch a severe crackdown on employees' expenses after nearly two thirds unearthed dubious claims.

In a survey by the law firm DLA Piper, a third of Scottish companies said they were reviewing how expenses are policed in light of the recent scandals in the public sector.

Almost 60 per cent of the 850 firms surveyed said they had had to interrogate an employee about an irregular or extravagant receipt although only in 15 per cent of cases this led to a dismissal.

It is estimated that workers in the UK are currently costing their employers 1bn a year in illegitimate claims.

Russell Bradley, head of employment law at DLA Piper in Scotland, said Scots firms should examine staff claims more carefully – particularly during the recession when money is tight.

"Even fiddling everyday expenses such as mileage, taxi fares and the odd bar tab can really add up for a business over the year and can totally destroy the relationships of trust between an employer and employee," he said. "Business expenses are not an enrichment or a perk, but simply a reimbursement for legitimate costs incurred in connection with your job – whether you are an MP or a salesman."

Research recently commissioned by Travelodge, the budget hotel chain, found that employees typically boosted their pay packets to the tune of 17 a month by claiming for expenses that they did not incur.

More public sector organisations are coming under increasing pressure to lift the lid on how they are spending taxpayers' money after it was revealed last week that BBC executives claimed almost 364,000 in expenses since 2004, including 1,000 on a celebratory meal for Terry Wogan and 400 on a cake.