What are the Financial Impacts of Working From Home?
With Plan B coming into effect and the rise of cases from the Omicron variant, many of us are working from home again. But what are the financial impacts to consider?
Many people have been working at home during 2020 and 2021 due to the coronavirus pandemic and now with the government rolling out Plan B, many of us will be going back to WFH. There are potential advantages and disadvantages of working at home depending on your occupation, household circumstances and individual working style. But what are the costs associated with working from home?
The rise of working from home
As of 13/12/21, many people who have gone back to the office or have had to become remote workers again. Remote working from the home office, team catch ups via video call, and flexible working have all been utilised by some companies where it’s not been possible for employees to work in the office due to covid-19. Some people may have been working at home this entire time, with their companies finding it’s not worth the risk and employees can work just as efficiently at home.
Unison has published some information on any questions you might have about your rights at work in regards to Covid-19.
Some of the benefits of working from home
The most obvious benefit of working from home during the coronavirus pandemic is for those who are shielding or those who do not need to be in the office to reduce their risk of catching covid-19 or the Omicron variant.
Some of the other potential benefits of working from home are:
- Avoiding the daily commute – many people spend a lot of money and time on their commute. Removing the commute may allow employees to save more money and spend their extra time working or doing other things;
- The company may save money – some companies could reduce some of their overheads by having employees work at home, for example the cost of the electricity and other office costs;
- Fewer distractions – this depends on your household circumstances but for those who enjoy working in a quiet, distraction-free space, working at home where you live alone or with a quiet household can be beneficial for your productivity;
- Wear whatever you want – many people no longer need to dress up in office clothes for the office now they are working from home, which may mean that workers are more comfortable and could be spending less money on new clothes for the office than they usually would.
The impacts of working from home
There are some challenges to navigate when working from home. Firstly, some people just prefer working with other colleagues and experiencing the buzz of a busy office. Others may have been experiencing problems with having enough space in their home, sharing a home office with a partner or other family members, or must juggle home schooling and childcare with their working day.
Some workers may have found the experience of working at home beneficial for their work life balance, with some people aiming to find the most lucrative work at home jobs following the pandemic rather than return to the office. On the other hand, other people may find that their work life balance has been impacted by coronavirus which may affect their mental health. According to Acas, employees working from home in the UK are still covered by the law on working hours. Having said this, how can people keep themselves motivated when working from home?
The NHS recommends using approaches such as sticking to a routine, setting up a dedicated work space or home office if you can, taking regular breaks and setting boundaries with your family or household members.
What does working from home cost?
There can be extra costs involved with remote working due to requirements for working at home. Creating a home office is not free – many people may have had to upgrade their laptops, purchase office equipment that they may not have needed before such as headsets, additional screens, keyboards and mice, furniture such as their own home office desk and chair, or even upgrading internet provider.Are You Eligible for a Consolidation Loan?
How to manage the extra costs of remote working
Many of these costs may be covered by your employer so it is worthwhile checking with them before you purchase additional equipment whether they will cover the costs or if they already have the equipment they can give you to use. This may not be an option for everyone, for example, if you are self-employed, or your employer doesn’t cover expenses such as broadband.
Did you know that you can also claim for working at home? Many people have been claiming for working at home using the UK government’s tax relief for working at home to recuperate some of the extra costs that they have accrued during the Covid-19 pandemic due. This a tax relief that you can claim for working at home for one day or more during this coronavirus pandemic – you may be able to claim up to two year’s worth of this tax relief even if you have not been working at home for the full year.
Do you have existing debts?
Many people may find that they need further advice or solutions to help with their financial situation. If you have existing debts and would like help keeping your payments to creditors manageable, you can fill out the quick and easy Consolidation Express application form.Apply for a Consolidation Loan
By: Lily Ruaah.
APRs from 5.8% to 89.9%
We are a broker, not a lender.
Unsecured Loan Representative 69.9% APR
Borrowing £7,500 over 36 months, repaying £502 per month, total repayable £18,083. Total cost of credit £10,583. Interest rate 69.9% (variable). The lenders on our panel offer loans for 12-60 months, with rates from 5.8% APR to 89.9% APR. The Representative Example is based on all loans paid out by lenders between 19th Apr 2022 and 23rd Dec 2022.
Secured Representative 11.7% APR
If you choose to add fees to the loan: Assumed borrowing of £25,000 over 120 months, plus a broker fee of £2,500 and a lender fee of £250 would result in monthly repayments of £345.55, the borrowing rate is 8.6% (variable), the APRC is 11.7% (variable), total charge for credit £16,466.00 and the total amount payable £41,466.00. You can opt to pay the lender and/or broker fees upfront, your adviser will discuss these options with you.
Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on a mortgage or any debt secured on it. All rates vary subject to loan amount, loan type and status. Repaying your debt over a longer period of time may increase the amount you pay.