By Andrew Cowling

BY introducing the lockdown and the work from home where possible message early on, the UK Government effectively forced many businesses to urgently explore more flexible working arrangements.

What I see from my clients is very much that business-owner mindset of “we have to do what is necessary to get through this”. Many businesses have adapted to the changes lockdown presented and emerged stronger as a result, lockdown having forced businesses to rethink their business models.

In some cases the introduction of working from home has enabled them to continue or adapt, when otherwise they might have failed.

The Government is in a difficult position at the moment, trying to balance the need to control the spread of the virus and keep people safe with the need to get the economy working again.

Before Covid, the Government had indirectly been encouraging the use of cloud-based technology which is integral for remote working and simplifying tax reliefs for home working. For example, the Making Tax Digital programme from HMRC requiring many businesses to maintain and submit their VAT returns using cloud software has shown businesses the benefits of being able to record their transactions in real time anywhere.

In many cases this has led to the adoption of further cloud technology elsewhere. When this is expanded further in April 2023, many more businesses will be forced to maintain their records digitally and submit up to date figures to HMRC.

Similarly, there are grants and programmes to support better broadband services, especially in remote locations, and although neither are generous reliefs, the Government increased the fixed allowance which can be paid or claimed by employees working from home from £4 to £6 a week with effect from April 6 this year, and HMRC introduced a simplified expenses regime for the self-employed to claim whilst working from home.

Although flexible working has been around for a while, the pandemic and lockdown have accelerated this process in particular for many accounting and professional services firms and, I believe, most will end up moving to work anywhere at any time arrangements. Those that don’t will find it difficult to recruit sought-after employees and potentially sought-after clients who will be drawn elsewhere with more flexible arrangements.

Family life and commitments are varied and complex and to recruit the best people working in the best way, firms need to be flexible about when, where and how work is done.

Prospective employees will drive much of these changes through the recruitment process by prioritising working with the more progressive firms and leaving behind those reluctant to change. There will be the same pressures from clients too.

Flexible working suits everyone. It means firms trust their staff to do the work. It saves time and costs all round on the commute and city centre parking. Staff like working at home at times and like working in the office at times; above all, they like to be able to choose and can achieve a better work/life balance.

To maximise the benefits from flexible working, training and encouraging everyone to be able to work independently, use their initiative and be organised is important.

Firms must learn to trust their staff and recognise that measuring output is more important than monitoring hours spent at a desk. After all, if you can’t trust your employees, then why are they working for you in the first place?

Andrew Cowling is a partner at Wylie & Bisset Chartered Accountants