Expense Fiddling in Cheshire: Stuck on a moat without a paddle

Expense-fiddling executives in business may need to start worrying about enquiries into their questionable spending.

Leading employment lawyer and lecturer Jonathan Whittaker of Cheshire law firm SAS Daniels LLP, says that employers thinking about making staff and management cough up refunds for genuine purchases of barbecues, cat food or home cinema systems are stuck on a moat without a paddle – but dishonest claims may be subject to the gangplank.

“It’s a case of the ridiculous versus the dishonest. A genuine purchase of something ridiculous but signed-off by the company is galling, but a non-existent purchase of something subsequently claimed for is dishonest,” said Jonathan Whittaker.

“If an expenses claim has been put through, no matter how ludicrous, and it has been signed off and paid by the cashiers or expenses claims department, then an employer cannot re-visit it two years down the line and demand the money back.

“If, however, those expenses are subsequently found to be dishonest – say claiming for a year’s worth of car journeys that he or she never made – then that is theft. Passage of time does not mean they can get away with it.

“By stuffing an envelope full of fivers and handing it to an expense fiddler, then they have effectively approved and accepted the expense claim as being legitimate and waived the right to claim it back.

“For instance, if a client entertainment allowance is, say, £50 a meal and the employee claims back on average £65 a meal, or the ‘meal’ has been found to be a session in a lap dancing bar with a client, then that is irritating – but signed off as legitimate.

“Personally I believe both businesses and public bodies should not hesitate to bring prosecutions for dishonesty – there is masses of theft in the workplace that is viewed by staff as being a perk of the job: taking stationery or envelopes, printer cartridges and so on, even buying electronic equipment that ends up in somebody’s living room.

“The bottom line is that if you buy something not approved by the employer, and you intend to deprive the employer of that item or equipment, then that’s theft.”

SAS Daniels LLP solicitors has offices in Stockport, Macclesfield, Congleton, Bramhall and Chester.

For more information contact Jonathan Whittaker