Partner Article

Expenses scandal holds warning for businesses

A warning has been given to companies across the North East to get their ‘house in order’ to avoid an MP-style expenses crisis in their workforce.

Durham-based Protostar Leadership Development say that businesses are suffering from their own lax expenses policies, which could see a government backlash if tighter expenses restrictions are used to boost Whitehall revenue.

The Managing Director of Protostar, Michael Coates, said: “Apart from the ethics of this situation, organisations could be saving money by having a fair but strict expenses policy and process.

“And if that was not reason enough, the Inland Revenue state that expenses outside their strict guidelines are a taxable benefit and could land the employee and the employer with a hefty bill.”

Mr Coates suggests North East companies should look at their existing policies to hold everyone in the business to account for their claims.

He said: “Organisations now need to examine their own expenses policies, along with taking into account the other areas where staff may be tempted to stray.

“A recent survey found that one in four men asked had looked at websites which could get them fired, and another found that employees spending hours on social networking sites during work time is the biggest issue affecting white collar productivity.

“Ironically the Government could help pay off the current national debt by using tax laws more diligently and company expenses, as they now know, are an easy source.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .