The court had heard that the former Labour Friends of Israel policy advisor had filed 19 receipts between January 2005 and January 2008.
He was warned that a custodial sentence would be considered.
Dr MacShane resigned as Rotherham MP last year after the Commons Standards and Privileges Committee found that his abuse of the expenses system was the “gravest case” called to its attention.
At the time he said: "Clearly I deeply regret that the way I chose to be reimbursed for costs related to my work in Europe and in combating antisemitism, including being the Prime Minister’s personal envoy, has been judged so harshly."
Shortly after his resignation Dr MacShane gave evidence in the failed employment tribunal brought by Jewish lecturer Ronnie Fraser against the University College Union.
The tribunal panel said it had found his evidence - in which he likened calls for a boycott of Israel to the persecution faced by Jews in Nazi Germany - to be "glib".
