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Over claiming on business expenses costs UK economy £1.6bn a year

Over claiming on business expenses costs UK economy £1.6bn a year

Professionals who over claim on their business expenses, including vehicle mileage, could be costing the UK economy a massive £1.6 billion a year, according to new research.

The study, which questioned 1,000 working professionals, revealed that 36% of drivers had over claimed mileage and 17% of employees deliberately over claimed on all of their expenses each month, whilst a further 41% felt there was not anything wrong with doing so, despite it being illegal.  

With more than half of respondents (55%) admitting to adding up to 10% on to their expenses every month, and a quarter of people claiming up to 20% extra, that is estimated to be costing the UK economy a massive £1.6 billion each year.  

When employees were asked by AllStar Business Solutions why they chose to over claim, 40% of respondents said they didn’t feel they got paid enough; 36% said they did so to make up for money owed from lost receipts.  

Shockingly, almost a third (29%) said they followed their colleagues lead, highlighting a worrying trend in UK culture, stating that it’s something that “everyone does”; while 28% simply felt they could “get away with it”.  

Paul Baker, vice president customer management at AllStar Business Solutions, said: “It is of no doubt that our research has revealed some shocking findings and it appears over claiming is a very big problem for British businesses. 

“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.  

“To help businesses we have created a dedicated white paper looking at pay and reclaim in much more detail, specifically in relation to fuel, which is commonly one of the biggest expenses for a company. We hope that this will encourage business owners to review processes they have in place in order to minimise these losses.”  

What’s more, the inaccuracy of financial claims made for ‘mileage driven’ and the amount of time required to administer a traditional ‘pay and reclaim’ system is huge.  

Employees themselves spent 90 minutes a month on average filling in expense forms, it is claimed. And for each of those someone needs to verify them and then actually repay them.
  ·         The free white paper is available at http://e-allstaremail.co.uk/p/3GJF-1T7/payandreclaim