Magazine |
Quarter of expenses ‘out of policy’

Some £2.1bn-worth of employee expenses could be ‘out of policy’ or fiddled – nearly one quarter of the UK’s total £8.8bn outlay on expenses, specialist firm GlobalExpense has calculated.

‘[Our] research found that 11% of all approved expense claims do not comply with company policy,’ a spokesman for GlobalExpense said. ‘This figure rises to approximately 20% of all hotel claims and 29% of entertainment claims.’

Additionally, the company reported, currently 15% of employees admit to fiddling expense claims, although this has reduced from roughly twice that proportion before the recession and the controversy over MPs’ expenses in 2009.

‘Examples of unusual employee expense claims paid in 2009 include an inflatable sheep, pig organs, lap dancers and pink furry handcuffs (claimed under ‘stationery’). The most expensive out-of-policy claims included a phone bill for over £88,000, the hire of a holiday villa at over £15,000 and a first class plane ticket that cost £11,314.’

Businesses have cut their overall expenses bill by around 9%, but ‘this is almost entirely accounted for by the reduction in fuel prices, dropping from a high in 2008,’ said David Vine, CEO of GlobalExpense.