The cost to small businesses of the return to the office
The costs of employees returning to the office may be tough for some small businesses to swallow, and there is financial support for back-to-work costs.
Businesses are under pressure to bring staff back into the workplace, with the government worried about the damage done to town-centre economies with so many people working from home. However, the costs may be off-putting for many employers: one recent survey found the average SME would have to spend almost £22,000 to bring everyone back. Nucleus Commercial Finance says the figure comprised costs such as new health and safety measures, reconfiguring the workplace, and investments in new technologies.
The bad news is there is no specific financial support for employers incurring back-to-work costs. They will be able to set these against their profits for corporation tax purposes, like any other cost, but that’s about it. The £1,000 job retention bonus, payable to employers for each member of staff who took part in the furlough scheme and still employed in January 2021, may be useful. But it’s payable whether your staff are back in the workplace or still working from home.
In the absence of financial support, many SMEs will wonder if asking staff to come back is worth it, assuming they can function effectively working remotely – all the more so given apparent rises in productivity. In a survey by Vodafone 40% of small businesses think they have been more productive since staff began working at home; many employees have opted to work during the time they previously spent commuting.
MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.

David Prosser is a regular MoneyWeek columnist, writing on small business and entrepreneurship, as well as pensions and other forms of tax-efficient savings and investments. David has been a financial journalist for almost 30 years, specialising initially in personal finance, and then in broader business coverage. He has worked for national newspaper groups including The Financial Times, The Guardian and Observer, Express Newspapers and, most recently, The Independent, where he served for more than three years as business editor.
-
How to boost your pension pot as 35% of UK over 50s face huge retirement savings gapOver 50s are facing spending later life with little to no funds - but there are steps you can take now to boost you pot.
-
Zoopla: House sales fall for first time in two years as buyers wait for Autumn BudgetThe average price of a house in September was £270,000, down £1,000 from August as the housing market’s Christmas slowdown came early, Zoopla says
-
Yoshiaki Murakami: Japan’s original corporate raiderThe originator of Japanese activism, Yoshiaki Murakami, was disgraced by an insider-trading scandal in 2006. Now, he's back, shaking things up
-
Galliford Try has firm foundations for strong growthBuilder Galliford Try has a finger in a wide range of pies, notably important work in the public sector
-
Card Factory is a stand-out small-cap going cheapIn a digital world, we still value the personal touch. That’s good news for Card Factory, whose unique business model is suited to weather all economic storms
-
How much gold does China have – and how to cash inChina's gold reserves are vastly understated, says Dominic Frisby. So hold gold, overbought or not
-
Debasing Wall Street's new debasement trade ideaThe debasement trade is a catchy and plausible idea, but there’s no sign that markets are alarmed, says Cris Sholto Heaton
-
Europe’s new single stock market is no panaceaOpinion It is hard to see how a single European stock exchange will fix anything. Friedrich Merz is trying his hand at a failed strategy, says Matthew Lynn
-
Should UK schools ban smartphones?The effects of smartphones on young minds are disturbing, with calls for politicians to make school smartphone bans mandatory. Is radical action needed?
-
Are venture-capital trusts worth investing in?Venture-capital trusts are a tax-efficient way to invest in early-stage companies. But are they worth the risk?