As the cost of living rises and many countries experience an energy price hike there’s a growing concern over the cost of working from home.
However, with the right knowledge in place, could remote working remain cheaper than a traditional office job?
Global hiring experts Remote have detailed the remote working tax deduction opportunities in nine key countries below. You can learn even more about taxation and pay in countries across the globe using the company’s Country Explorer information bank.
No matter where you live, knowing your employee rights and your nation’s available benefits for remote workers is crucial for reducing the cost of living while working from home.
The British government offers remote employees a standard tax relief of £6 per week to support the costs of additional gas, electricity, and communication charges related to working from home.
However, from 6 April 2022, the £6 a week can only be claimed if your job requires you to work from home because you live far away from your office or if your employer does not have an office.
Remote UK employees can claim for:
- Gas and electricity for your work area
- Business phone calls
Note that you cannot claim for expenses that you require for both private and business use such as rent and broadband.
In Ireland, remote workers are entitled to 10-30% reimbursement of their electricity, heating and internet bills for the number of days worked at home.
The reimbursement is broken down into 10% of the cost of electricity and heat incurred based on the number of days worked at home over the year.
A further 30% reimbursement of the cost of broadband is also based on the number of days worked at home over the year.
In Germany, remote workers are entitled to €5 per day for remote working expenses. This is capped at €600 (the equivalent of 120 days of remote work).
This working-from-home allowance (or Homeoffice-Pauschale) can be granted to German remote workers. The scheme is only applicable to days on which you exclusively work from home. For example, you cannot claim €2.50 for a working day split equally between home and the office.
Full-time remote workers and self-employed people can also claim full remote work business expenses. For them to qualify, they need to have a dedicated and separate home office – an area which is purely for work purposes (a guest room with a desk in the corner does not count).
However, the €5 flat rate for up to 120 days applies to all working-from-home setups.
Remote workers in France can claim an allowance for their home office. This is often reimbursed as a lump sum to the employee. The allowance is limited to €10 per month for an employee working from home once a week.
Under this scheme, the employer is only responsible for the costs incurred by remote working from home if the company agreement or the policy provides for this. There is no statutory obligation, meaning that reimbursements are down to the discretion of each company.
As of October 2020, employers are required to cover all the expenses associated with work-from-home equipment for workers in Spain. That includes computer hardware, tools, and furniture needed by employees to perform their work duties from a remote or home office location. </…….