Overclaiming on business expenses is costing the UK Economy £1.6bn
Recent research has found that professionals who overclaim on their business expenses could be costing the UK economy a massive £1.6bn a year.
The study, which questioned 1,000 working professionals, revealed that 36% of drivers have overclaimed mileage and 17% of employees deliberately overclaim 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, this is estimated to be costing the UK economy a massive £1.6bn each year.
When asked why they choose to overclaim, 40% of respondents said they don’t feel they get paid enough; 36% said they do so to make up for money owed from lost receipts. Shockingly, almost a third (29%) simply follow their colleagues lead, highlighting a worrying trend in UK culture, stating that it’s something that “everyone does”; while 28% simply feel they can “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 overclaiming 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.”
Why not discover more about your own business expense habits with our interactive calculator? Find out what you could have purchased with the amount you’ve spent on business expenses in your career so far and see how you compare to others.
Our recent business expense white paper reveals more about the implications of pay and reclaim procedures. Download to gain further insight into this hidden problem.