Company expense procedures 'should be fair and firm'

Small firms should ensure that they have"firm and fair" expense procedures in place, in order to prevent staff from making false and costly claims.

Stephen Alambritis, spokesman for the Federation of Small Businesses (FSB), says it is important for business owners to make sure employees provide receipts for all work-related purchases and that accurate accounts are maintained - with employers advised to pay particular attention to any costs that are not "run of the mill".

"Employers need to make sure their staff are aware that any false expense claim is a disciplinary offence that can ultimately lead to dismissal," he comments.

Mr Alambritis' comments come after research by Travelodge revealed that workers submit around £1 billion worth of 'dubious' claims annually.

According to the poll of 3,000 British employers, expenses had been claimed for items including a diamond engagement ring, a honeymoon, plastic surgery and escorts.

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