Expenses Q

johnmurph01

Hi guys,

I have a technician on the road who sometimes goes to clients to fix their printers. There's a bit of sales involved too.

Anyways, recently I got an expense report from this person and was a bit shocked at how they are charging me mileage.

For example...

One Tuesday they went to visit a client for a lunchtime sales meeting (mile or so from office), after this, they drove home and billed me mileage from client's office to their home. Their home is probably 20 miles further "down the road" from the office.

Correct me if I'm wrong but mileage shouldnt account for them going home in the evening? if anything shouldnt i get a bill for mileage back to the office (1 mile!) and then let them drive home on their own cost?

I have nothing specific to say this is how it should be done in the employment contract, but thought this would be a given! Would love your thoughts!

pedronomix

my view is that it would depend on where they normally work from, home or office?

johnmurph01

pedronomix wrote: »

my view is that it would depend on where they normally work from, home or office?

Office is base. Never from home.

pedronomix

if he normally starts and finishes from the office that is the reckonable mileage base point. Do consider jobs that may be closer to his home, swings and roundabouts!

Alan Shore

In principal the employee is entitled to travel from their place of work to the client or from home to the client which ever is shorter.

The payment tax free is the shorter if you pay the longer distance then you should operate PAYE on it

Graham

johnmurph01 wrote: »

Would love your thoughts!

Employee is either incredibly optimistic or is chancing his luck.

johnmurph01

Graham wrote: »

Employee is either incredibly optimistic or is chancing his luck.

I'm beginning to think the latter. But useful information from all. Got to me reasonable but looking back over the last 15 months I see this has occurred a few times. At least revenue will be on my side with this.

Thanks all!

delahuntv

I'd put it down as employee theft and get rid of them for sending in false expenses.

Though if they are with you more than a year, probably best to give warnign first.

I'd also review previous expenses and deduct or at least say that you would be entitiled to deduct the excess paid.

Also, if the employee is scamming you on mileage, what else is he scamming you on?

Alkers

Just explain how it should be calculated, the expenses cover the cost to the location from either the normal place of work or the employee's house - whichever is less (irrelevant where the employee actually started/ended the trip from).

Tefral

delahuntv wrote: »

Also, if the employee is scamming you on mileage, what else is he scamming you on?

Id wait before jumping to conclusions like this. The amount of people ive had to help fill out their expenses over the years is shocking, most people don't actually have a clue, they just think if they are using their car that they should be paid that's pretty much it.

OP, if you havent a company mileage policy then create one and explain that this is how it works from this point on for the saving of confusion.

Peregrinus

delahuntv wrote: »

I'd put it down as employee theft and get rid of them for sending in false expenses.

Absolutely not. The guy disclosed exactly what the claim was for, and where he was going. Absolutely no falsity there. And the employer has, in all innocence, paid several such claims in the past; obviously the employer didn't have a clear understanding of what was and was not payable, so it would be a bit rich for him to say that the employee knew that this was not a reimbursable expense. There's no evidence that the employee knew this, and the fact that the employer didn't know it it seems entirely reasonable to think that the employee didn't know it either.

Birdsong

Sounds like you need a mileage and our expenses policy or guidelines, eg milage at civil service rates. Until you have this you can't blame him for chancing his arm imo