Expenses: What Areas Do Employees Claim the Most On?
When out on the road, your employees are bound to rack up expense claims.
Some of these are eligible for tax relief; others are viewed less favourably by HMRC. As a fleet manager or business owner, it pays to keep tabs on what your team is spending. To demonstrate why, we’d like to shed light on UK employee expense statistics.
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Consider each expense, and whether it falls into your business model:
Rail fares have been rising in the UK quite consistently. It’s no surprise that UK employee expenses statistics show people are being far more careful with the trains they reserve. According to a survey by Trainline For Business, 65% of SME owners go for off-peak travel, instead of ‘anytime’ trips, to stay cost-effective. 40% felt the need to restrict business travel altogether where trains are concerned.
From 2012-2015, there was a 30% increase on mileage costs, and that figure has undoubtedly grown since then. HMRC lets you pay an ‘approved amount’ of MAPs (Mileage Allowance Payments) with a special calculation method. In doing so, you don’t have to report the final sum to HMRC – but anything above it has to be submitted and taxed appropriately.
Lower accommodation costs have been welcome side-effect of the Brexit vote. In 2017, there’s been a 3.9% average decrease in the price of a hotel room. This follows a fall of up to 20% the year before in some parts of the country. En masse, such savings can be attractive for businesses handling dozens of overnight stays. However, hotels aren’t going to leave the top of the expense pile anytime soon.
Food and drink
Keeping your staff fed and watered on the move can soon add up. Most businesses set a meal allowance for business travel to cap this spending, and these expenses are eligible for tax relief up to a certain point.
For 5-10 hours of travel, the maximum spend is £5; this jumps to £10 at 10-15 hours, and £25 thereafter. Of course, in some areas of the UK it can be difficult to stick within this budget, which makes discount dining cards a popular cost-saving tool for businesses with a growing fleet to manage.
However large your fleet or list of account managers might be, there’s always room to trim the cost of the resources you’re paying for. UK employee expense statistics can tell us what is central to how we function, but not how we should track and submit that critical data…
This is where the Allstar Plus Business Expenses card, or ancillary services, can come into play. We can monitor, analyse and compose what you’re spending on.
Get your card today and start saving on every mile your employees travel.