Frequently Asked Employment Questions

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Topic: Company and staff handbooks

How do we prevent dodgy expense claims?

There are several things you can do. The first is to create a clear policy on company expenses, which sets out: (1) what can be claimed; (2) how they should be submitted and timeframes for doing so; (3) upper limits for claims, e.g. for hotel bills and meal costs; and (4) any restrictions, e.g. on alcohol and in-room entertainment. However, you may need some flexibility on your restrictions as they won’t be appropriate if the expenses are for entertaining clients. Another effective way of tightening up on claims is to require that receipts are submitted for all expenses over a certain amount, e.g. £5.00.  You should also make it clear that any unsupported or out of time claims will not be paid unless there’s a good reason. Tip. Regularly monitor expenses claim forms. If any discrepancies appear, raise them with the employee immediately.