There are nuances as to what employees can claim as a travel expense. You should therefore have a detailed policy to help you to maintain a sense of order and transparency.
For example, it’s not always clear what qualifies as private or personal vs. work-related travel expenses. Let’s say an employee travels from home to a permanent workplace. They then travel from the permanent workplace to a temporary workplace. In this instance, the first leg of their trip is not eligible for tax relief but the second leg is. Grey areas like this should be outlined in your policy.
A structured policy will help limit employee overspending. In a Soldo survey with over 2,500 UK employees, staff expense claims cost UK businesses £1.9 billion a year. Employees spend an average of £117/month on unauthorised expenses.
38% of employees claim expenses for things that they know are off-limits or exaggerated. For example, overstating the number of travel miles they needed or altering taxi receipts to inflate the fare.
A clear-cut policy combined with technology can nip behaviour like this in the bud.