Homework allowance to be continued until July 2021
The Dutch government announced that employers are still allowed to reimburse fixed net travel allowances until 1st July 2021. Do your employees receive a fixed travel allowance, and do they work (almost) entirely from home due to Covid-19? In that case, the fixed travel allowance does not have to be adjusted as of April 1st, 2021, as mentioned in our earlier article in January.
At least up to and including June 30th, 2021, the fixed travel allowances may be reimbursed free of tax. Even when these travel costs are no longer made by the employee as a result of working from home. However, the condition remains in place that the employee should have already been granted the fixed net travel allowance before March 13, 2020.
Please note that the reimbursement of exterritorial expenses under the 30% ruling is excluded from the measure as described above.
Untaxed reimbursement of home office expenses
It is expected that more and more work at home will be done in the future. The Dutch government is now investigating the possibilities of an additional regulation that would make it possible for employer to provide an untaxed allowance for homework expenses, for which no targeted exemption currently applies.
This arrangement would be an addition to the existing possibilities for untaxed reimbursement of specific homework expenses, such as health and safety provisions and ICT resources such as a telephone, laptop or extra monitor. This additional regulation should also continue to have an effect after Covid-19, but must also to be covered by the budget in the cost framework. It is highly likely that this additional regulation will not be able to be applied before the end of this year.
However, employers can still provide a reimbursement for homework expenses via the free space of the work-related cost scheme (WCR). See also our earlier article in January regarding changes to free space WCR 2021.
If you have any questions about the fixed net travel allowance or other payroll related questions, please don’t hesitate and contact our specialists.