Workers who use their savings to pay for work fees spend roughly £400, and over half are not able to claim back expenses from their company. Half of the employees use cash or credit cards to pay bills, spending an average of £367 each year.
Enterprises make a lot of money from employees who use their funds to pay for work expenses. Employees are spending almost £400 on spending their own money and more than half of them fail to claim the money back from their employers.
This is something that should be dealt with by the government because it is creating more problems, such as the lack of cash flow for small businesses. In addition, this can cause a high turnover rate in companies because workers will be unhappy when they have to spend so much time reimbursing expenses with their own money and not receiving any reimbursement in return.
45% of employees fail to claim back expenses
However, 45% of those employees fail to claim back expenses according to new research by Capital One.
Only 14% of employees use a business credit card, and 7% use a business debit card when they are spending on behalf of their employer.
Travel across the country was found to be the main business expense, more than half of those surveyed claiming this, followed by the purchase of office types of equipment and supplies at 34%. Overnight accommodation came in at 33%.
In 42% of the cases, receipts get lost
However, there were different reasons cited for failing to claim back expenses, with the main one being the loss of receipts; 42% of those who didn’t claim said this was the reason. A fifth of these employees were reluctant to claim back expenses. One in 10 said they had had their expense claims queried and rejected by their employer.
Also, Rydoo’s Research Report on the State of Expense Management 2022 has revealed that 40% of companies in main European markets now scan their receipts and don’t retain paper copies. This makes sense considering that studies have proven that hybrid work is the new way of working – and for that, bringing receipts to an office doesn’t really work.
No surprise that the report also revealed that those companies that had most embraced working from home were more likely to have digitised all their finance systems
In Conclusion
Employees are spending almost £400 on working expenses that they have paid for themselves. Half of these employees fail to get reimbursed by their employers, which has created a big problem because it is causing high turnover rates in companies where workers are unhappy about paying out so much money with no reimbursement coming back to them.
This can be attributed to the government’s failure to deal with this issue- there needs to be stricter regulation because small businesses will suffer without cash flow and people who work hard should not feel like they’re being taken advantage of when trying to make ends meet at the end of each day.
Source: telegraph.co.uk
