London workers losing £22.8m a year in unpaid business expenses

London-based workers are losing £22.8m a year through slow payment of business expenses, a study has shown.

The process of claiming expenses costs each London-based employee an average of £57 a year, owing to bank interest charges deducted while waiting to be reimbursed by their employer.

The study, by Access Group, of 2,000 workers, found that Londoners fared the worst when it comes to money lost to expenses in comparison to other UK regions.

The research also shows that 52% of London workers also admit to having lost a receipt, meaning they are unable to claim on business expenses. Each year this can reach £15 on average, adding a further £6m to the money collectively lost by London workers each year.

The impact of these losses means that 16.3% of London workers have admitted to cutting back on essentials such as food, while 13.7% said it had affected their mortgages or rent payments. Meanwhile, 12.4% said it has meant they have been unable to pay a bill, and 10.3% have turned to a payday loan company to tide them over until their employer reimburses them.

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