Understand Deductions

What are work-related expenses

receive a deduction for work-related expenses

What are work-related expenses?

Work-related or so-called "other employee expenses" are not commonly utilized. According to Skat, this is mainly due to the fact that they are difficult to obtain.

However, in a time where a lot of people are self-employed, freelancers and entrepreneurs, this category of reductions may still be relevant.

In this article, we will cover:
  • What work-related expenses are
  • Which expenses you are eligible to receive deductions for
  • Other conditions you will need to be aware of
  • Whether you are eligible to receive any deductions

What are work-related expenses?

Work-related expenses are expenses you have paid to be able to successfully do your work. These are also known as "other employee expenses".

To offer you an example, this could be that you need to purchase a computer to do your job. Most work places would likely provide you with one; however, if you are tasked with purchasing it yourself, you are eligible to receive a deduction. The specific types of expenses you are eligible to receive deductions for will be covered further down.

Which expenses are you eligible to receive deductions for?

There are several types of expenses you can receive deductions for. The following are the ones that are the most commonly used:

If you take a course to maintain or update your professional education, then you can get a deduction. However, primary and secondary education does not count.

This is only about phone expenses if you have made calls for your work that is not refunded by your employer. That also means that subscription costs or phone purchases do not count here.

If you have bought your own computer, monitor, keybord, etc., which is necessary for you to work, then you can get deductions. However, the deduction depends on both how much you use the equipment for work compared to privately and whether it should be “written off” (depreciated) over a number of years.

Read at the bottom of the article how to see this.

The literature must be necessary for you to do your work. So-called “popular science” magazines do not count.

Work clothing should be understood as special clothing that is necessary for you to work, for example, a uniform that you have purchased yourself and not been reimbursed by your employer. It can’t just be clothes you buy because the workplace requires nice attire such as suits and dresses.

This is a rare deduction in that it covers customer dinners necessary to directly secure your income, for example, if you are paid in sales commissions. However, most employers cover these expenses for you. But if it is not refunded, then you can get a deduction for part of the expense.

Read at the bottom of the article how to see this.

Inventory and assets of operation are larger purchases that are necessary for your work e.g. a piano as a piano teacher. However, the deduction depends on both how much you use the equipment for work compared to privately and whether it should be “written off” (depreciated) over a number of years.

Read at the bottom of the article how to see this.

What else do you need to be aware of?

The deduction for work-related expenses has several important conditions:

  • The expenses are necessary for you to be able to work
  • The expenses are not reimbursed to you by your employer
  • You must be able to document your expenses
  • You must be an employee SU does not count as a salary
  • There is an initial limit on the expenses of up to the first 6,200 DKK (2019) which are not eligible for deduction.
  • If you purchase IT equipment or fixtures for more than 13.800 DKK, it will need to be depreciated (distributed) over several years. It can become a complex puzzle to solve. If you have a great number of such purchases, you may want to look into getting an accountant.

Check to see if you are eligible for any deductions

The deduction for work-related expenses ("other employee expenses") offers an opportunity to get compensated for a portion of your work-related expenses.

However, you need to be aware of all its conditions, exceptions, calculations, depreciations etc. This can easily become somewhat of a jungle to navigate.

That is why we at Tax Helper have created an easy and intuitive platform that comfortably allows you to check if you fulfill the deduction's requirements and make it all the way to the finish line in terms of reporting your deductions to Skat. It is free to try out, and you only pay if you save money on your taxes.