Rumours are swirling that a 5% ‘working from home’ tax could be applied to businesses.
Plans are clearly already underway to recoup the government’s spending during the coronavirus pandemic.
So, what would this 5% ‘working from home’ tax look like…
What’s The Idea Behind A ‘Working From Home’ Tax?
The ‘working from home’ tax is something that has been discussed for quite some time.
The tax would apply to employers who have not assigned their workers with a permanent desk. This move would help get more people working in their office spaces again.
However, if the employee decides that they wish to work from home on some of their days, then they would pay the ‘working from home’ tax themselves.
The 5% tax would be pulled from their salary.
For a worker on £35,000 this would amount to around £7 a day (roughly the same amount it would cost to commute in and out of work).
Where Did The Idea Come From?
The report was produced by Deutsche Bank, who suggested that this income could go towards workers who do not have the privilege from working from home (such as low-income workers).
The report also makes it very clear that this tax would not be applied to the self employed, people on low incomes, or anyone who has been ordered to stay at home due to legal or health reasons.
However, since it is growing in notoriety, the idea might have caught the interest at Downing Street.
Many businesses are strongly considering a ‘working from home’ model once coronavirus is under control. This idea from Deutsche Bank could be turned into a strong tactic that would recoup some of the government’s coronavirus support spending.
Deutsche Bank believe that this ‘working from home’ tax would generate £6.9billion every year, which is still not a mark on the hundreds of billions that have been spent so far on coronavirus support.
Here’s The Full Report
It’s important to note that this is just an idea from Deutsche Bank, and might not ever get the attention of Downing Street.
We just want to make you aware of what some of the top players in the tax world are heavily promoting and sharing, so that your business can be as prepared as possible.
Get More Business Blogs Like This
Interested In Our Accountancy, Tax, Bookkeeping & Payroll Services?
Get In Touch Below