In 2023, 12.7 per cent of full-time employees worked from home, while 28.2 per cent worked a hybrid model.
Judging by the statistics, this is unlikely to change any time soon as a staggering 98 per cent of workers expressed the desire to work remotely, at least part of the time.
Therefore, if you own a business, you should seriously consider allowing your workers (and yourself) to follow a remote working schedule.
This doesn’t have to be fully remote, in fact, most employees would prefer a hybrid model, likely recognising the need for in-person social interaction.
How does remote work save you money?
One of the most significant advantages of remote work is the potential for cost savings.
Businesses can see a reduction in overheads, such as office space rentals and utility bills.
Salaries, too, might be adjusted based on employees’ geographic locations, leading to further savings. This is principally for workers in and outside of London.
Additionally, expenses on in-office amenities can be substantially lowered.
Enhanced employee productivity
There’s a growing body of evidence suggesting that remote work can boost productivity.
A study by Standford found that working from home increased productivity by 13 per cent.
This rise isn’t just beneficial for output – it has tangible financial implications.
Higher productivity can translate into increased profits and efficiency.
Attracting and retaining talent
Remote work is an attractive proposition for many employees.
It can lead to higher job satisfaction and, consequently, better retention rates.
Financially, this means businesses save on the costs associated with high staff turnover plus the higher staff morale might have further benefits on the working environment.
Financial and tax implications of remote work
We often answer questions from our clients on the utility of remote work.
Does it have financial or tax benefits?
Will the business suffer through some hidden tax clause that places it in further liabilities?
Fundamentally, yes, remote working does provide a more considered approach to tax, but it is by no means impossible to make it work efficiently within your business.
In fact, an accountant can make the transition perfectly simple from a tax point of view.
Here are two of the most important challenges for businesses with remote employees to be aware of:
Other challenges of remote work
On top of the tax considerations, you should also be aware of the lesser-thought-of risks that are associated with remote work:
For companies considering or currently adopting remote work policies, a thorough financial evaluation by a qualified accountant is essential.
This includes assessing potential savings, understanding tax implications, and preparing for the challenges that remote work can present.
It’s a balancing act, but with careful planning, the financial benefits of remote work can be substantial.
Speak to one of our team if you are considering remote working arrangements.
