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Dishonest Drivers Scam Employers
A recent survey by hotel chain Travelodge found that one in five employees admitted exaggerating their expense claims. Now a report by The Miles Consultancy suggests car drivers are among the worst culprits, scamming thousands from their employers in dishonest expense claims every year.
The research suggests the problem is more widespread than previously expected, where mileage claims are frequently exaggerated in order to raise reimbursement, or in some cases private mileage is ‘adjusted’ – a ploy to avoid heavy taxation.
The Miles Consultancy surveyed employees from a number of blue-chip companies. A spokesperson for the firm said “Our findings have revealed that it is perhaps even more common than many people think, and it seems to mostly affect drivers who use their own car, a car provided under an employee car ownership scheme or those who take a cash allowance.”
In these circumstances, mileage is much harder to track than in an official company car and milometer readings are rarely submitted. Popular tricks include rounding up figures to the nearest round number ending in zero, and over-estimating distances covered on longer journeys far away from home – again, difficult to track precisely.
The implications of this type of fraud are huge. As well as the obvious cost to companies (forced to pay out thousands to dishonest employees) there is also the cost to the taxpayer: if drivers are dishonestly reducing their tax liability by claiming business mileage for journeys that were in fact for personal travel.
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