Tax Working from Home?

[westv]

Deutsche Bank Research: Tax home workers 'to help those who cannot'

Report says working from home should be taxed at 5% to help those whose jobs are under threat.

www.bbc.co.uk

Working from home should be taxed to help support workers whose jobs are under threat, a report has suggested.
Deutsche Bank Research suggests a tax of 5% of a worker's salary if workers choose to work from home when they are not forced to by the current pandemic.
The tax would be paid for by employers and the income generated would be paid to people who cannot work from home.

I think it's a crazy idea but, no doubt, others will think otherwise.

 

[Ianno87]

There's a false belief there that Working From Home = Secure Job. That is not true.

 

[221129]

Given that in the UK you can claim tax relief if you work from home I dont think it will happen.

 

[Simon11]

Should the same apply to online retailers too then? Should they pay a higher tax as they have less presence on the high street and pay less taxes/ employee costs?

 

[ainsworth74]

How about, in exchange for taxing workers who work from home more, Deutsche Bank stop laundering money?

Germany’s troubled Deutsche Bank faces fines, legal action and the possible prosecution of “senior management” because of its role in a $20bn Russian money-laundering scheme, a confidential internal report seen by the Guardian says.

The bank admits there is a high risk that regulators in the US and UK will take “significant disciplinary action” against it. Deutsche concedes that the scandal has hurt its “global brand” – and is likely to cause “client attrition”, loss of investor confidence and a decline in its market value.

Deutsche Bank was embroiled in a vast money-laundering operation, dubbed the Global Laundromat. Russian criminals with links to the Kremlin, the old KGB and its main successor, the FSB, used the scheme between 2010 and 2014 to move money into the western financial system. The cash involved could total $80bn, detectives believe.

Deutsche Bank faces action over $20bn Russian money-laundering scheme

Exclusive: in confidential internal report seen by the Guardian, bank says scandal has hurt global brand

www.theguardian.com

 

[Ianno87]

Is this another case of "divide and conquer"? Pit home workers against non-home workers?

 

[OuterDistant]

I wonder how much money Deutsche Bank have in commercial property?

 

[DarloRich]

What they mean is : Tax those working from home back to the office so our investments in commercial property make more money.

 

[DynamicSpirit]

What they mean is : Tax those working from home back to the office so our investments in commercial property make more money.

Sounds about right.

It's a daft idea. People who work from home are arguably helping society because they are travelling less and therefore not causing so much congestion or CO2 emissions (provided they aren't using loads of power to heat their homes). You don't want to tax people for helping society! It would create a perverse incentive for people to find excuses to leave their homes, and the suggestion that it doesn't apply to the self-employed also creates an additional incentive for people to find ways to reclassify themselves as self-employed (already an issue because of existing tax differentials). And there's the bureaucracy... How would you do it for people who frequently, but not always, work from home? Pro-rata? So would employers have to report how many days a person works at home to HMRC? And what about people who sometimes work from home, but who work from the office enough days that they buy rail season tickets? They'll make no saving on their travel but still have to pay the extra tax... that'll go down well. Ditton anyone who works half-days from home.

Non-starter.

 

[3rd rail land]

Deutsche bank do not have any idea about my working situation. When I go to the office I am able it put the travel costs on expenses as I do not have an assigned place of work so the cost to me is £0. At present I am allowed to dress casually every day, not just on Fridays so my saving on clothes is £0. I currently bring lunch with me when I go to the office as the onsite canteen is closed and the office is on a business estate that is not in walking distance of any shops. So again the saving to me is £0 although I have to prepare lunch in advance which I don't do currently as I WFH.

I realise my situation is far from the norm but taxing me 5% for WFH would most certainly leave me worse off! Also as others have said it would have to be pro-rata as I and I assume most people do go into the office occasionally.

 

[GB]

Deutsche Bank Research​

It argues this is only fair, as those who work from home are saving money and not paying into the system like those who go out to work.

Not really sure what that is supposed to mean. People who work from home still pay tax, national insurance and pension contributions. OK so they have zero commuting costs but then so do those that walk or cycle.

Someones working arrangements are between them and their employer...no one else.

 

[birchesgreen]

Yes i don't really save a great deal of money by WFH either, maybe a tenner a week less fuel, but my electricity bill has increased by about the same anyway.