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Benchmarking budget/allowance for home office

Hi All, 

I've done a search and nothings coming up that matches what I'm looking for (unless I've missed something in which case I'm happy to be signposted to it). 

I've recently moved to a business where they have in the last month closed their office and moved to a fully remote operation. Myself and the VP HR are interested in finding out what similar businesses do in terms of some kind of allowance (either quarterly or yearly) for each employee towards the costs of either setting up or maintaining their home office in recognition of the fact that we were previously hybrid so some existing employees and also those joining the business may not already have a home office set up. 

We're not thinking of it being contributions towards household bills but more so each individual has a budget in place which they can expense things like a new desk or chair, printer ink/stationery (if required for their role) or other things like laptop stands etc. 

We already provide all the IT equipment someone might need, included keyboard and mouse, screens etc. 

If you wouldn't mind sharing what your organisations do, if anything, it would be much appreciated. 

Thanks

Gemma

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  • Steve Bridger

    | 0 Posts

    Community Manager

    20 Sep, 2023 16:13

    Excluding house plants? Wink

     Work from home expenses - house plants? 

  • In reply to Steve Bridger:

    Haha yes! Definitely excluding house plants!
  • We’ve recently set up a home working policy for our fully-remote business. We carry out DSE and general WFH risk assessments, (via a Teams call - I’m 42 calls in, 20 still to go!) and reimburse up to £350 VAT towards desk, chair, foot rest etc - where the risk assessment suggests some new kit is required. So it’s more of a H&S outcome than a straightforward benefit/pot of money for employees to spend. There’s a clawback period for some/all of the expense if employees leave within 12 months of the equipment being purchased or reimbursed.
  • In reply to Maya:

    Thanks Maya! We're looking at online DSE assessments with training at the moment provided by a third party so we'll hopefully cover off any H&S needs through that. Our main concern is the fact that some employees may not yet have set up any kind of home office and need to kit out from scratch, especially those new to the organisation so we want to offer some kind of budget to support that, or where equipment might need replacing due to wear and tear. The clawback period is sensible, and I will suggest that. Good luck with your final 20 calls!
  • In reply to Gemma:

    Just as a question / observation - if someone is applying for a fully remote role might they not have the kit themselves already ? I think 2-3 years into this new world people applying for these roles are far more set up than we think.

    Not a reason for not doing something but also maybe a question over if this as pressing a need as we think. I am more with in that I would do it following a H&S/DSE review and kit them out with what they need rather than necessarily set a budget

    Although you will see from the house plant thread that I can see the merit of allowing people to buy plants etc for engagement - its just core kit that should be structured
  • Steve Bridger

    | 0 Posts

    Community Manager

    21 Sep, 2023 10:45

    In reply to Keith:

    I agree,  

    There would anyway need to be a recognition that employees with a disability will often require more support in this area - with the additional option of applying for Access to Work support. 

    The employer and employee will also need to be aware of insurance liability, too - with business-owned equipment usually automatically covered by the employer's insurance policy. Kit for the purposes of working remotely not provided by the employer will have no entitlement to cover by the employer's policy, etc.

  • Hi Gemma. One my recent clients was fully remote and from memory they would provide funds to a certain amount for equipment and then if the manager and individual needed more, either because of an assessment (we wrote this ourselves using MS forms and collected data from them for DSE/HSE) requirement or perhaps it was required for the role. For example you might need a higher spec screen or two screens for a role. They also took into account that they didn't want the equipment back - aside from the laptop when people left.

    I think a consideration is what can be considered a capital expenditure and added to company tax and what's allowable with HRMC when setting the allowance limit, sign off for anything additional and how to claim it back - if the employee is paying it themselves and then expensing it.

    It's a bit of a finance, HR, process and Health and Safety liability considerations convo to be had. Works well when you get it clearly written down, communicated and then people know who has to do what when.

    ps we didn't include plants. ;-)
  • In reply to Sharon:

    Thanks Sharon, are you able to share how much they offered at all? I assume there was cap/budget in place for this?