{"id":15057,"date":"2022-10-21T09:45:25","date_gmt":"2022-10-21T09:45:25","guid":{"rendered":"https:\/\/www.keesdeboekhouder.nl\/the-work-related-costs-scheme-wkr-explained\/"},"modified":"2024-02-12T13:41:05","modified_gmt":"2024-02-12T13:41:05","slug":"the-work-related-costs-scheme-wkr-explained","status":"publish","type":"post","link":"https:\/\/www-backup.keesdeboekhouder.nl\/en\/the-work-related-costs-scheme-wkr-explained\/","title":{"rendered":"The work-related costs scheme (WKR) explained\ufffc"},"content":{"rendered":"<section class=\"header-block block\" style=\"background-color: #f4f4f5;\">\n    <div class=\"container h-100\">\n        <div class=\"header-block__wrapper row h-100\">\n            <div class=\"header-block__left d-flex col-12 col-sm-7 d-flex justify-content-center align-items-end\">\n                <img decoding=\"async\" loading=\"lazy\"\n                     class=\"image d-block\"\n                     alt=\"The work-related costs scheme (WKR) explained\ufffc\"\n                     src=\"https:\/\/www-backup.keesdeboekhouder.nl\/wp-content\/uploads\/2023\/09\/david-van-dijk-3LTht2nxd34-unsplash-3-scaled.jpg\"\n                     srcset=\"https:\/\/www-backup.keesdeboekhouder.nl\/wp-content\/uploads\/2023\/09\/david-van-dijk-3LTht2nxd34-unsplash-3-scaled.jpg 2560w, https:\/\/www-backup.keesdeboekhouder.nl\/wp-content\/uploads\/2023\/09\/david-van-dijk-3LTht2nxd34-unsplash-3-300x201.jpg 300w, https:\/\/www-backup.keesdeboekhouder.nl\/wp-content\/uploads\/2023\/09\/david-van-dijk-3LTht2nxd34-unsplash-3-1024x686.jpg 1024w, https:\/\/www-backup.keesdeboekhouder.nl\/wp-content\/uploads\/2023\/09\/david-van-dijk-3LTht2nxd34-unsplash-3-768x514.jpg 768w, https:\/\/www-backup.keesdeboekhouder.nl\/wp-content\/uploads\/2023\/09\/david-van-dijk-3LTht2nxd34-unsplash-3-1536x1028.jpg 1536w, https:\/\/www-backup.keesdeboekhouder.nl\/wp-content\/uploads\/2023\/09\/david-van-dijk-3LTht2nxd34-unsplash-3-2048x1371.jpg 2048w\"\n                     sizes=\"(max-width: 2560px) 100vw, 2560px\"\/>\n                                <span class=\"image-caption text--small\"><\/span>\n            <\/div>\n            <div class=\"header-block__right d-flex flex-row flex-wrap col-12 col-sm-5 justify-content-start align-items-start align-items-sm-end\">\n                <h1 class=\"title\">The work-related costs scheme (WKR) explained<\/h1>\n                                <div class=\"d-flex col-12 justify-content-start justify-content-md-end p-0\">\n                    <span class=\"label text--small\">21 October 2022 \u2013 Reading time : 7 minutes<\/span>\n                <\/div>\n                                            <\/div>\n        <\/div>\n    <\/div>\n<\/section>\n\n<section class=\"quote-block block\">\n    <div class=\"container\">\n        <div class=\"row\">\n            <div class=\"col-12 col-md-8 offset-lg-1 col-lg-9 offset-xl-2 col-xl-8\">\n                <div class=\"quote-block__quote-wrapper d-flex flex-wrap\">\n                    <blockquote>As an employer, you have the option to pay out tax-free allowances to your employees. This means that you don\u2019t have to pay tax over them, as is the case with wage. You can decide for yourself what you want to reimburse, provide or grant, but of course there are certain things that you have to take into account. In this blog, you can read everything you need to know about this so-called work-related costs scheme (WKR).<\/blockquote>\n                    <div class=\"text--small text--weight-500\"><\/div>\n                <\/div>\n            <\/div>\n        <\/div>\n    <\/div>\n<\/section>\n\n<section class=\"text-block block columns-1\">\n    <div id=\"\" class=\"deeplink-anchor\"><\/div>\n    <div class=\"container\">\n        <div class=\"row\">\n            <div class=\"col-12 offset-lg-1 col-lg-10 offset-xl-2 col-xl-8\">\n                <div class=\"text-block__text-wrapper rich-text d-block\">\n                    <p><strong>What exactly is the WKR?<\/strong><br \/>\nAs an employer, the work-related costs scheme allows you to grant employees allowances, benefits in kind, and (temporary) provisions tax-free. This includes matters such as Christmas gifts, staff outings or a company bicycle. It also includes matters that personally benefit your staff, such as a subscription to a sports club. However, there\u2019s a maximum to the total amount that you\u2019re allowed to reimburse tax-free: you have to respect the so-called discretionary scope. Using the WKR is mandatory, and everything that is issued as such must be administered.<\/p>\n<p><strong>The discretionary scope<\/strong><br \/>\nThe height of the discretionary scope is determined per year. In 2024, this will be 1.92% of total wages, up to an amount of \u20ac400,000. For everything over \u20ac400,000, the discretionary scope is 1.18%. Do your reimbursements exceed the discretionary scope? Then you\u2019ll have to pay 80% tax over that part.<\/p>\n<p>An example: the total taxable salary of your employees is \u20ac650,000. The discretionary scope is 1.92% over the first \u20ac400,000; which translates to \u20ac7,680. For the remaining \u20ac250,000, the discretionary scope is 1.18%, or \u20ac2,950. In total, the discretionary scope is \u20ac10,630.<\/p>\n<p>In the above example, all allowances for employees are tax-free up to a total amount of \u20ac10,630. When you reimburse employees after the discretionary scope has been exceeded, you pay 80% tax over those spendings. This tax amount is called the final levy and you pay it at the latest in the second tax period of the following year. The final levy is then deductible as business expenses.<\/p>\n<p><strong>Costs that aren\u2019t included in the discretionary scope<\/strong><br \/>\nSome allowances are not at the expense of the discretionary scope. A distinction is made between zero valuations and specific exemptions.<\/p>\n<p><strong>Examples of benefits under zero valuation:<\/strong><\/p>\n<p>\u2022 Furnishing of workplace<br \/>\n\u2022 Refreshments that are not part of a meal, such as coffee and tea<br \/>\n\u2022 Work clothing (such as mandatory safety clothing or clothes with a logo that meet the requirements of the Dutch Tax and Customs Administration)<\/p>\n<p><strong>The specific exemptions include:<\/strong><\/p>\n<p>\u2022 Reimbursing or providing a laptop<br \/>\n\u2022 Travel allowances<br \/>\n\u2022 Meals during overtime<br \/>\n\u2022 Providing computers if necessary for work activities, for example<\/p>\n<p>A necessity criterion applies to all products that you believe your staff needs to do their job, for example tools or a smartphone.<\/p>\n<p><strong>Fixed fees<\/strong><br \/>\nFixed fees apply to certain reimbursements within the WKR. The best known are the travel allowance of \u20ac0.23 per kilometer and the allowance for meals. As stated above, meals during overtime \u2013 as well as meals during business trips or meals for mobile employees, for example \u2013 fall in the specific exemptions category. However, when you also provide lunch for your employees for example, a fixed fee of \u20ac3.90 per meal applies. This means that you cannot state any amount higher than this fixed fee in your discretionary scope, even if the actual costs are higher. The remaining amount is to be included in the calculation of the final levy. Another option is to include this amount as a private use addition on the pay slip of your employees, just like a company bicycle or car. In that case, the amount will not be at the expense of the discretionary scope and you won\u2019t have to deal with a final levy.<\/p>\n                <\/div>\n            <\/div>\n        <\/div>\n    <\/div>\n<\/section>\n\n<section class=\"text-image-right-block block\">\n    <div class=\"container\">\n        <div class=\"row flex-column-reverse flex-md-row\">\n\n            <!-- Text -->\n            <div class=\"text-image-right-block__text-wrapper rich-text col-12 offset-lg-1 col-md-6 col-lg-4 offset-xl-2 col-xl-3\">\n\n                <p><strong>What about VAT?<\/strong><br \/>\nThe VAT on reimbursements that fall within the discretionary scope is deductible. But there\u2019s a threshold. As long as you don\u2019t spend more than \u20ac227 ex. VAT per employee per year, you can deduct the VAT. If you exceed this threshold, the VAT is not deductible. Have you already reclaimed the VAT during the year? In that case you\u2019ll have to pay it back. However, if your employees pay a personal contribution, you\u2019re allowed to deduct this from the costs incurred. And if that means you now stay below the threshold amount, the VAT is deductible. You will need to pay VAT on these personal contributions.<\/p>\n\n                            <\/div>\n\n            <div class=\"text-image-right-block__image-wrapper col-12 offset-md-0 col-md-6 offset-lg-1 mb-4 mb-md-0\">\n\n                                    <!-- Image -->\n                    <div class=\"w-100 text-image-left-block__image-container\">\n                        <img decoding=\"async\" loading=\"lazy\"\n                             class=\"image d-block w-100\"\n                             alt=\"The work-related costs scheme (WKR) explained\ufffc\"\n                             src=\"https:\/\/www-backup.keesdeboekhouder.nl\/wp-content\/uploads\/2023\/09\/charlesdeluvio-GlavtG-umzE-unsplash-3-scaled.jpg\"\n                             srcset=\"https:\/\/www-backup.keesdeboekhouder.nl\/wp-content\/uploads\/2023\/09\/charlesdeluvio-GlavtG-umzE-unsplash-3-scaled.jpg 2560w, https:\/\/www-backup.keesdeboekhouder.nl\/wp-content\/uploads\/2023\/09\/charlesdeluvio-GlavtG-umzE-unsplash-3-300x300.jpg 300w, https:\/\/www-backup.keesdeboekhouder.nl\/wp-content\/uploads\/2023\/09\/charlesdeluvio-GlavtG-umzE-unsplash-3-1024x1024.jpg 1024w, https:\/\/www-backup.keesdeboekhouder.nl\/wp-content\/uploads\/2023\/09\/charlesdeluvio-GlavtG-umzE-unsplash-3-150x150.jpg 150w, https:\/\/www-backup.keesdeboekhouder.nl\/wp-content\/uploads\/2023\/09\/charlesdeluvio-GlavtG-umzE-unsplash-3-768x768.jpg 768w, https:\/\/www-backup.keesdeboekhouder.nl\/wp-content\/uploads\/2023\/09\/charlesdeluvio-GlavtG-umzE-unsplash-3-1536x1536.jpg 1536w, https:\/\/www-backup.keesdeboekhouder.nl\/wp-content\/uploads\/2023\/09\/charlesdeluvio-GlavtG-umzE-unsplash-3-2048x2048.jpg 2048w\"\n                             sizes=\"(max-width: 2560px) 100vw, 2560px\"\/>\n                        <div class=\"rotated-label\">\n                            <label><\/label>\n                        <\/div>\n                    <\/div>\n                            <\/div>\n        <\/div>\n    <\/div>\n<\/section>\n\n<section class=\"text-block block columns-1\">\n    <div id=\"\" class=\"deeplink-anchor\"><\/div>\n    <div class=\"container\">\n        <div class=\"row\">\n            <div class=\"col-12 offset-lg-1 col-lg-10 offset-xl-2 col-xl-8\">\n                <div class=\"text-block__text-wrapper rich-text d-block\">\n                    <p>It&#8217;s up to you to calculate how much you have spent per employee. In the case of personal expenses, such as a Christmas present, this is easy. But expenses made for a group of employees need to be divided by the number of people who\u2019ve benefited from it. It\u2019s the only way to determine per employee whether you\u2019ve remained below the threshold amount.<\/p>\n<p>Example: you have 5 employees and you give everyone a Christmas gift worth \u20ac75 excluding VAT. You also organised a trip for 3 employees, the total costs of which were \u20ac750 excluding VAT. And 1 employee received an anniversary gift that cost \u20ac100 excluding VAT.<\/p>\n<p>\u2022 You can deduct the VAT from the Christmas gifts of the employees for whom you did not organise a trip.<br \/>\n\u2022 You can deduct the VAT from the anniversary gift if you did not arrange a trip for this employee, because in that case the total costs for this employee will not exceed the threshold.<br \/>\n\u2022 No VAT can be deducted for the costs of the trip, because they exceed the threshold amount.<\/p>\n<p>These are the most important conditions for using the work-related expenses scheme. Of course there are always exceptions and as an employer you will encounter specific situations that we have not described here. It is therefore important that you, as an employer, are always properly informed.<\/p>\n<p>Author: Sanne Paaij<\/p>\n                <\/div>\n            <\/div>\n        <\/div>\n    <\/div>\n<\/section>","protected":false},"excerpt":{"rendered":"<p>As an employer, you have the option to pay out tax-free allowances to your employees. This means that you don\u2019t have to pay tax over them, as is the case with wage. You can decide for yourself what you want to reimburse, provide or grant, but of course there are certain things that you have to take into account. In this blog, you can read everything you need to know about this so-called work-related costs scheme (WKR).<\/p>\n","protected":false},"author":8,"featured_media":19495,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[19],"tags":[],"class_list":["post-15057","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-keep-up-en"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v23.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>The work-related costs scheme explained - Kees de Boekhouder<\/title>\n<meta name=\"description\" content=\"Discover Tax-Free Allowances for Employers: A Comprehensive Guide to the Work-Related Costs Scheme (WKR) and its Benefits\" \/>\n<meta name=\"robots\" content=\"noindex, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The work-related costs scheme explained - 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