Global expenses app, ExpenseOnDemand, has published new data highlighting that only 20% of employees working from home are claiming relevant expenses. If an employer requires staff to work from home it often may mean a marginal increase in household costs such as mobile data, heating, metered water bills, home contents insurance, business calls or broadband connections.
If an employee works from home, even if it’s just for part of the week they are eligible to claim a rate of £6 a week from HMRC and this can be back dated to the date this commenced. This means employers can either pay staff an extra £6 a week tax free or the employees can ask for the amount to be deducted from their taxable income. Many employees have been working from home since March so this could now be a significant amount.
On top of this additional available income many employees are saving hundreds, if not thousands of pounds by removing commuting costs such as annual train fees and paying for coffees and lunches. For many this has also meant an improvement in the work life balance with many employees being able to spend more time with family.
The new data also revealed that overall business claims have reduced by more than a fifth for more than 45% of all businesses with the other businesses claiming they have reduced by at least 15% meaning businesses saving millions on business expense costs during this difficult year.
The ExpenseOnDemand app allows employees to simply upload and claim business expenses from any mobile device, helping businesses to automate their expenses process in a paperless environment. The data from thousands of users shows the extent the pandemic has had on many industries, causing business across the globe to reduce costs, furlough staff and focus on survival.
Sunil Nigam, Founder at ExpenseOnDemand said, “As the real economic impact of the pandemic takes affect many individuals are seeing reductions in pay as financial leaders manage in the short term to try and survive this difficult year. It is therefore amazing to see that only 20% of employees are benefitting from the tax-free saving of £312 a year.”
The team at ExpenseOnDemand has adapted our market leading app to make it easier for finance leaders and staff to manage expenses in the new normal, especially with so many employees working from home. They can simply and seamlessly upload expenses and finance teams can automate the whole process.”