UK Expense Statistics

Including MP expenses, small business expenses and more.

GoSimpleTax has analysed a number of databases and trends to compile a comprehensive offering of UK expenses statistics, revealing information like ‘what are the top things people claim on expenses?’, ‘MPs expenses statistics’ and ‘expense cases’. We have also analysed small business expenses statistics and employee expense statistics.

Key Expense Statistics

The five key takeaways from our UK expense statistics are:

• The most commonly offset expenses were in the vehicle and home categories

• Some of the most dubious claims, made by both MPs and ordinary people, were for travel and clothing-related expenses

• Smaller mainstream political parties claimed more than the larger parties

• MPs in Scotland and the North of England were some of the highest claimers

• From 2010/11 to 2018/19, the number of claims and the amount offset had risen significantly

Why do people claim on expenses?

Vehicle

Incl. care insurance and parking tickets

Home

Especially rent.

Travel
Food
Childcare
Telecommunications

Especially rent.

Loans & Overdrafts
Pension contribution
Office decorations
Staff parties
Work uniform

Why do people claim on expenses?

Less commonly claimed expenses, that you are still within your right to claim for,
but typically are not claimed as frequently, include:
Other devices

Like laptops

Eyecare

Specifically glasses

Language lessons
Headphones

How many people don't claim expenses?

£123.00

£123 worth of expenses per
individual is left unclaimed every year.

£962m

£962m of unclaimed
expenses every year.

60%

60% do not claim their
expenses properly, or at all.

Research was also conducted by Barclays in 2018 revealing how many people don’t claim their expenses amongst other things. It was revealed unclaimed expenses totaled £962m, averaging out at approximately £123 per person. That’s a lot of people that individuals could be saving each year if they filed of all of their applicable expenses.

The same set of research also found that around 60% of people did not file any expenses, (so it’s no wonder that so much isn’t claimed) giving the following as reasons:

•  The value was deemed too low to go through the process of claiming them (37%)

•  The required receipts were lost (33%)

So, of the population who can claim on expenses, it’s estimated around 60% did not. This averages out as a £123 loss in claimable expenses for each person, each year. 

What are some weird uk expense claims?

Though there’s a lot of expenses you can claim for, there are also some claims that are rejected. Some claims were not approved by HMRC because they were considered to not be solely for business purposes. HMRC has listed the ones they deem most dubious as:

How many people don't claim expenses?

Our expenses statistics have also revealed some other expenses believed to be questionable in previous years. Some bizarre claims include:
  • Holiday flights to the Caribbean
  • Luxury watches – claimed as staff Christmas gifts       from a business without employees
  • International flights – to receive dental treatment       prior to business meetings
  • Food for a Shih Tzu – stated as a “guard dog”
  • Armani jeans – the protective work uniform for a           painter and decorator
  • Regular Friday night asserted “bonding sessions”         (totalling thousands of pounds)
  • Underwear for personal use
  • A garden shed for private use (and the cost of the       space it occupies)
  • Betting slips
  • Caravan rental for the Easter weekend

Can disallowed expenses be appealed?

From looking at previous cases, the answer is yes. Exclusive business use can have personal purposes too, and this has resulted in some expenses cases going to court. In 2018, an exotic dancer at Stringfellows successfully appealed against HMRC’s order that she pay tax totalling over £8,600. The Tax Chamber in London ruled all the following as deductible:

Stage clothing – because it wouldn’t be used other than for business reasons

Cosmetics and perfume – whilst this ‘stage make-up’ could have been worn outside her workplace, she claimed they were purchased solely for it

Hairdressing, extensions and beauty treatment – as the purpose of these was to enhance her appearance for performances

In 2010, there was the ‘Parsons v HMRC Commissioners’ case: a film stuntman appealed against HMRC’s decision to disallow health-related claims. The verdicts reached were:

Medical expenses – those connected to the occupation were accepted, like a knee operation

Health and fitness, chiropractor and dentist expenditure – expenses relating to general health were rejected

 

How much is claimed in expenses by MP's?

Our 2019 UK expense statistics showed that more than 130,000 items were claimed by MPs, bringing in a total of £22.5m’s worth of expenses claimed by MPs.

£22.5m

MP speakers and Sinn Fein claim the least in expenses.

The SNP and the Green Party claim the most in expenses collectively.

Which MP's claim the most in expenses by location?

Our UK MP expense statistics can also reveal that the highest expense claims were from MPs in Scotland (constituencies like Gordon CC offset more costs for office and accommodation than travel) and the North of England.

What are the weirdest things claimed by MP's on expenses?

Our UK MP expense statistics have also revealed that MPs have made some pretty dubious claims in the past, including:
  • A chocolate Santa (59p)
  • Fox’s Ginger Crinkle biscuits (67p)
  • Jellied eels (£1.31)
  • Maintenance for a toilet seat (£112.52)
  • Moat cleaning (£2,115)
  • Hedge trimming around a helipad (£609)
  • A leather rocking chair (£1,200)
  • Two Kenyan carpets (£200)
  • A toilet roll holder (£35)
  • Tea lights (£1.19)
  • A floating duck island (£1,645)
  • An ice cube tray (£1.50)
  • Ride-on lawnmower overhaul (£598)
  • Hanging baskets (£600)
  • Dog food (£4.47)
  • Halogen lightbulbs (£185)
  • Lightbulbs as part of maintenance costs (£135)
  • Trouser press (£119)
  • Elephant lamps (£134.30)
  • Horse manure (70p a bag
There have also been some pretty surprising claims made on expenses by unnamed MPs for potentially irrelevant or extravagant spending:
  • A hotel “while on duty” (£700)
  • A one-night hotel stay for a “member of staff” (£600)
  • Chalk (£1.55)
  • Georgian to English dictionary app (£1.99)
  • Onion rings (£3.75)
  • Parking for a spouse’s trip to London (£28)
  • Window frosting (£636)
  • Equality and diversity training (£980)
  • A laptop (£1,153)
  • “Nigerian Alumni” (£1)
  • Gammon and an egg (£9.95)
  • HR support (£5,981.76)
  • 5* Hotel Eurostars Madrid stay (£536.73)
  • A dependant’s trip from London to Preston (£300

What political party claims the least in expenses?

Whilst each party offset similar amounts, MP speakers of the Parliament and Sinn Féin claimed the least on expenses.
Lowest claiming MP's
Includes claims made between 1 Apr 2018 and 31 Mar 2019, excluding repayments.
Those claiming the least were around the £5,000 mark and under, with three MPs offsetting no expenses whatsoever. Theresa May was also one of the lowest claimers (£4,376.56).

What political party claims the most in expenses?

Prominent but smaller parties, The Scottish National Party (SNP) and The Green Party have been revealed to claim the most in expenses:

  • The Scottish National Party (SNP): £193,574.86
  • The Green Party: £186,113.10
  • This was more than Labour (£171,217) and the Conservatives.

Average total claimed by party

Average per MP between 1 Apr 2018 and 31 Mar 2019

Highest claiming MP’s

Includes claims made between 1 Apr 2018 and 31 Mar 2019, excluding repayments.

 

MPs in the highest bracket were generally between the amounts of £68,000 and £85,000. Shabana Mahmood of the Birmingham, Ladywood constituency was the highest claimer at £101,403.65.

 

MP expense statistics, 2010 - 2019

Historically, from the 201/11 to 2018/19 financial years, Labour and SNP MP’s are collectively the highest claimers at 28.9% and 24.4%. Comparatively, Conservatives (who have had the most seats over this period) are at 8.9%. Some significant details over the years include:

  • 2016/17: 9 out of the 10 top claimers belonged to the SNP
  • 2018/19: 8 out of the 10 lowest claiming MPs were in the Conservative Party
  • 2010/11: 6 out of the 10 lowest claiming MPs were Conservatives
  • 2016/17: travel and subsistence claims were at £5.3m, reducing to £3.07m in 2018/19
 
From 2010/11 to 2018/19, the total offset by MPs has risen by £71.1m, and the number of claims to over 10,000. Staffing ha always been a key expenditure, and a substantial contributor to this increase. From 2010/11 to 2013/14, staffing rose from £53.95m to £80.51m.

The most-claimed MP expense was rent for accommodation (£6.2m), followed by rent for office constituency (£4.2m). Other significant categories were:

  • Telephone usage and rentals (£770k)
  • London hotels (£500k)
  • Travel – first class (£355,978.17) and economy (£392,852.68)
  • Congestion charges (£11.8K)

Company director statistics - interesting facts

We also analysed information around company directors, and the expenses that they claim, as part of our expenses statistics research.

The expense information revealed François Ortalo-Magné, the Dean of London Business School, claimed for a number of dubious expenditures. They included:

  • Luxury hotel suites
  • Spousal accompaniment on international flights
  • Crisps
  • Hand sanitiser
  • Chocolate almonds
  • “222 detox” drink

And overseas, some specific business expenses offset in the US were the following:

  • Human skull ($800) – approved
  • Helicopter travel to work ($6,500) – rejected
  • Hotel bill and flight changes ($10,000) – rejected
  • Llama rental ($150) – approved
  • Vehicle towing ($150) – approved
  • Separate hotel room for root vegetables ($85) – rejected
  • Cher concert tickets ($125) – approved
  • Boarding for pet snake ($30 per day) – approved
  • Men’s Rolex watch ($8,000) – approved

High profile person expense statistics

Our UK expense statistics also detail the Lorraine Kelly case where she appealed against a £1.2m tax bill. She successfully won with the claim that her agent’s fees were tax-deductible as she is a theatrical performer. Her evidence was that this categorisation applies to her because of comedy sketches, such as that with Aled Jones.
If you require any assistance with claiming YOUR expenses (don’t miss out on that £123 a year) via our impressive tax return software, get in touch with the GoSimpleTax team.
Sources of information:
  • Buying Business Travel, the Barclays Study: https://buyingbusinesstravel.com/news/1729218-uk-workers-miss-out-%C2%A3962m-unclaimed-expenses/
  • Certify, The Craziest Expenses Survey: The Best of 2013-2018: https://www.certify.com/
  • 2018-12-18-The-Craziest-Expenses-Survey-The-Best-of-2013-2018
  • ICAS, Revealed: the weirdest expense claims sent to HMRC, March 2019: https://www.icas.com/education-and-qualifications/weird-expense-claims-sent-to-hmrc-student-blog
  • MPs Expenses, 2018-2019: https://www.mpsexpenses.info/#!/all/2018
  • The Telegraph, MPs’ expenses: 20 most bizarre claims: https://www.telegraph.co.uk/news/
  • newstopics/mps-expenses/5318810/MPs-expenses-20-most-bizarre-claims.html?image=2
  • Taxation, The ‘kneed’ for an expense: https://www.taxation.co.uk/articles/2010-05-19-259881-kneed-expense
  • Whitefield Tax, Nothing exotic about this dancer’s tax return: https://www.whitefieldtax.co.uk/nothing-exotic-about-this-dancers-tax-return/
  • eFinancialCareers: The big mistake of my hedge fund career: taking my wife on a business trip: 
  • https://news.efinancialcareers.com/uk-en/323720/take-wife-on-a-business-trip

 

 

 

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