page contents

Employees use own cash for business expenses to the tune of £3.5 billion

Employees use own cash for business expenses to the tune of £3.5 billion

Whether at home in the UK or overseas, 1 in 5 (19%) employees have to use their own cash, and a further 1 in 6 (16%) rack up the spend on a personal credit or debit card.

In a time of peak-employment, with fewer people out of work and the best talent in high demand, you’d think companies would be doing everything possible to build relationships and foster goodwill with employees. Apparently not, as new research by market leading foreign exchange and international payments company Caxton, reveals that when it comes to corporate spending, 35% of businesses expect their employees to cough up for business expenses themselves.

Employees working for an SME (an organisation with less than £10m in annual revenue) fare much worse with 48% expected to pay for their own travel expenses, and 46% having to use their personal credit or debit card to fill up at the pump.  It’s no wonder 1 in 3 employees have experienced cash-flow issues as a result.

These findings coincide with the launch of new Business management platform that provides a fully automated expense solution, including a choice of two different corporate cards – removing the unnecessary burden placed on employees to use their own money. A supporting mobile app makes it easier for employees to quickly capture, upload and categorise their receipts, while a back-end functionality enables accounts teams to efficiently track and manage expenses in real time for greater visibility, peace of mind, and more control of business spending.

State of business expenses across the UK

The research questioned 150 financial controllers, managers and directors responsible for corporate expenses and FX payments in companies with 50 plus employees, and also paints an interesting picture of the state of business expenses nationwide. Given that there are 43,000 businesses, each employing more than 50 people and accounting for over 50% of employment in the UK, employee “lending” per business equates to £81k according to findings. Across the UK, this amounts to a staggering £3.5bn.

For more information about corporate expense management, download the 2019 Caxton Expense Management Report.

Caxton will be exhibiting at World Travel Market in London on 4-6 November 2019 at Stand TT530 in the N10 hall.