One in three employees ‘top up their pay with fraudulent taxi claims’

Research of 1,000 employees who regularly use taxis for work-related travel found that almost a quarter will routinely ask for a blank receipt so they can add a few extra pounds before submitting their expenses claim.

One in 10 admit going a step further and filling in claims for taxi journeys that have nothing whatsoever to do with work.

Some 31 per cent of workers admit doing either one or both, the study for expense management company Spendvision found.

Employees in the North East are most likely to doctor their claims, with 45 per cent filling in blank taxi receipts with inflated fares or making claims for personal journeys. The North West is a close second with 44 per cent, while workers from the East Midlands are more likely to play things by the book, at 22 per cent.

Shane Bruhns, chief operating officer and director of Spendvision, said: “Most UK employees are fundamentally honest but the fact remains that taxi fares remain an easy target for the minority of employees who are open to temptation.

“A few pounds here or there might not seem like much to an individual but if almost a third of your workforce is routinely
adding £15-£20 a month to
their expenses, the amount companies are losing quickly stacks up.”

More than half (57 per cent) of respondents mainly pay for taxis in cash and 27 per cent try to pay by card wherever possible.

Spendvision warned that the dominance of cash-based transactions makes it difficult for companies to establish an effective paper trail for taxi travel, meaning claims are rarely queried.

Bruhns said: “The cash-based nature of taxi travel is clearly a weak link, leaving employers no choice but to put their faith in the honesty of their employees. From our research we found employees who regularly pay for taxi fares by card are half as likely to submit a false claim as those who pay with cash.

“Replacing cash with card-based payments would be a step in the right direction, offering far less scope for fraud.”