UK workers miss out on £1.4 billion in unclaimed expenses, study finds

Research has uncovered that workers failed to claim £1.4 billion in expenses over the past year.

The most common items workers are not claiming back include mileage (19%), refreshments (16%) and parking (15%), as 26% believe the amount is too insignificant to bother.

A quarter (24%) failed to submit an expense because they lost the receipt, while 21% complained about the complexity of the expense process in their workplace.

Steve Paul, deputy CFO of expense management and payments provider Equals Money, which commissioned the research, stated: "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.

"Submitting expenses late can make cash flow more challenging for employers as they struggle to monitor their company spend."

The study also found that 55% of workers have expenses to submit at least once per month, while 18% have had their claims rejected in the past. One in three of these individuals firmly believe they were treated unfairly.

A quarter confessed that they had actually submitted it incorrectly, while 24% were rejected due to lack of proper documentation to verify the purchase.

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Furthermore, 23% discovered the hard way that the cost was not covered by the company, highlighting the problems that outdated expense management systems can pose for employees.

On average, workers who submit expenses put through a total of £155 each month, with 40% submitting at the earliest possible opportunity. However, 30% prefer to wait and submit all their receipts and invoices at once.

In an average working month, employees spend about 27 minutes ensuring they will be reimbursed by their employer. Over four in ten (43%) are reimbursed within a week, but 15% have to wait until their next pay packet.

Three quarters of the workers surveyed via OnePoll.com stated that being able to claim expenses quickly and efficiently makes them feel valued as an employee.

Moreover, 52% agreed that timely reimbursements from their employer demonstrate respect for their finances. However, 24% have been concerned about covering work-related costs due to potential difficulties in getting reimbursed.

Steve Paul from Equals Money commented: "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).