Workers failed to claim £1.4BILLION in expenses last year – are you owed money? --[Reported by Umva mag]

WORKERS failed to claim £1.4 billion in expenses in the last year, research has revealed. A study of 2,000 employed adults found 22 per cent have not claimed some costs back from their employer since August 2023. SWNSThe Equals Money study shows employees forego an average of £16.71 per month on unclaimed expenses[/caption] With these foregoing an average of £16.71 in a typical month which they are entitled to. Mileage (19 per cent), refreshments between meetings (16 per cent) and parking (15 per cent) are the most common items workers are not claiming back, as 26 per cent think the amount is too insignificant to bother. A quarter (24 per cent) failed to submit an expense because they lost the receipt, but 21 per cent bemoaned the complexity of the expensing process in their workplace. Steve Paul, deputy CFO of expense management and payments provider Equals Money, which commissioned the research, said: “Many workers underestimate the impact of unclaimed expenses, often dismissing small amounts as insignificant. “However, what might seem like just a few pounds here and there can quickly add up to hundreds or even thousands over time. “By neglecting to claim these expenses, employees are essentially leaving money on the table, which could have a significant impact on their financial wellbeing. “And submitting expenses late can make cash flow more challenging for employers as they struggle to monitor their company spend.” It also emerged 55 per cent of workers have expenses to submit at least once per month, while 18 per cent have had their claims rejected in the past. With one in three of these being adamant they were unfairly treated. Exactly a quarter went on to admit they actually submitted it incorrectly, but 24 per cent had it turned down because they didn’t have the correct documentation to prove the purchase. And 23 per cent learnt the hard way the cost was not covered by the company, further proving the hassle that outdated expense management systems can create for workers. On average, overall, expense submitting workers put £155 each month in total through the system – with 40 per cent submitting it at the earliest possible opportunity. However, 30 per cent will wait to submit all their receipts and invoices in one go. In a typical working month, staff spend an average of 27 minutes making sure they are going to get reimbursed from their employer. Over four in 10 (43 per cent) will be paid back within a week, but 15 per cent need to wait until their next pay packet. Three quarters of the workers polled via OnePoll.com went on to say being able to claim expenses quickly and efficiently makes them feel valued as an employee. With 52 per cent agreeing timely reimbursements from their employer shows a respect for their finances. However, 24 per cent have worried about paying for work related costs because of the difficulties they might face getting the cash back. Steve Paul from Equals Money added: “It’s essential for companies to provide their workers with a simple and seamless system for reclaiming expenses. “When the process is complicated or time consuming, employees are less likely to claim what they’re owed or submit expenses late. This can make it harder for businesses to have visibility over their spending. “A real-time, streamlined system not only gives businesses better control of their spending but ensures fairness and demonstrates a company’s commitment to supporting its workforce and their financial health.” Top 10 costs workers fail to expense Mileage Refreshments during and between meetings away from the workplace Parking fees Office supplies (pens, paper, folders) Public transport (bus, tube) Train tickets Work-related subscriptions (industry magazines, professional journals) Team drinks Working from home equipment (office chair, desk) Professional development (conference fees, training courses)

Sep 23, 2024 - 15:49

Workers failed to claim £1.4BILLION in expenses last year – are you owed money? --[Reported by Umva mag]

WORKERS failed to claim £1.4 billion in expenses in the last year, research has revealed.

A study of 2,000 employed adults found 22 per cent have not claimed some costs back from their employer since August 2023.

a man reaches for a binder labeled connect

The Equals Money study shows employees forego an average of £16.71 per month on unclaimed expenses[/caption]

With these foregoing an average of £16.71 in a typical month which they are entitled to.

Mileage (19 per cent), refreshments between meetings (16 per cent) and parking (15 per cent) are the most common items workers are not claiming back, as 26 per cent think the amount is too insignificant to bother.

A quarter (24 per cent) failed to submit an expense because they lost the receipt, but 21 per cent bemoaned the complexity of the expensing process in their workplace.

Steve Paul, deputy CFO of expense management and payments provider Equals Money, which commissioned the research, said: “Many workers underestimate the impact of unclaimed expenses, often dismissing small amounts as insignificant.

“However, what might seem like just a few pounds here and there can quickly add up to hundreds or even thousands over time.

“By neglecting to claim these expenses, employees are essentially leaving money on the table, which could have a significant impact on their financial wellbeing.

“And submitting expenses late can make cash flow more challenging for employers as they struggle to monitor their company spend.”

It also emerged 55 per cent of workers have expenses to submit at least once per month, while 18 per cent have had their claims rejected in the past.

With one in three of these being adamant they were unfairly treated.

Exactly a quarter went on to admit they actually submitted it incorrectly, but 24 per cent had it turned down because they didn’t have the correct documentation to prove the purchase.

And 23 per cent learnt the hard way the cost was not covered by the company, further proving the hassle that outdated expense management systems can create for workers.

On average, overall, expense submitting workers put £155 each month in total through the system – with 40 per cent submitting it at the earliest possible opportunity.

However, 30 per cent will wait to submit all their receipts and invoices in one go.

In a typical working month, staff spend an average of 27 minutes making sure they are going to get reimbursed from their employer.

Over four in 10 (43 per cent) will be paid back within a week, but 15 per cent need to wait until their next pay packet.

Three quarters of the workers polled via OnePoll.com went on to say being able to claim expenses quickly and efficiently makes them feel valued as an employee.

With 52 per cent agreeing timely reimbursements from their employer shows a respect for their finances.

However, 24 per cent have worried about paying for work related costs because of the difficulties they might face getting the cash back.

Steve Paul from Equals Money added: “It’s essential for companies to provide their workers with a simple and seamless system for reclaiming expenses.

“When the process is complicated or time consuming, employees are less likely to claim what they’re owed or submit expenses late. This can make it harder for businesses to have visibility over their spending.

“A real-time, streamlined system not only gives businesses better control of their spending but ensures fairness and demonstrates a company’s commitment to supporting its workforce and their financial health.”

Top 10 costs workers fail to expense

Mileage
Refreshments during and between meetings away from the workplace
Parking fees
Office supplies (pens, paper, folders)
Public transport (bus, tube)
Train tickets
Work-related subscriptions (industry magazines, professional journals)
Team drinks
Working from home equipment (office chair, desk)
Professional development (conference fees, training courses)

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